When you open a fixed deposit with bank then you are lending money to the bank and it pays you interest. Applicable interest rates will be given as on the date of receipt of the funds by the bank and is fixed for the specified duration. Interest that is earned on fixed deposits is taxable in the hands of the depositor. Tax or TDS is deducted by the bank, if the aggregate interest income from fixed deposits that you are likely to earn for all your deposits held in a branch is greater than Rs 10,000 in a financial year. In our article Fixed Deposits and Tax we looked at Taxation aspect of Fixed Deposits. We saw that we can avoid getting TDS cut(not avoid paying tax though) by Distributing FD investment, Timing the FD,By Submitting Form 15G/15H. The conditions under which Form 15G and 15H may be filed are similar yet with a significant difference. Each taxpayer needs to fully understand the specified conditions and ascertain whether he or she is eligible for filing the relevant form. Filing the form without being eligible to do so is illegal and will invite payment of interest on the tax payable and also a penalty. This article is about explaining the difference.
Income Tax Act
If you believe that your total interest income for the year will not fall within overall taxable limits, you should inform the Bank not to deduct TDS on deposits. You can do this by submitting a form as per the provisions of the Section 197A of Income Tax Act. Quoting fromSection 197A
The Finance Act, 1982 has inserted a new section 197A with effect from June 1, 1982. The section enables an individual who is resident in India and whose estimated total income of the previous year is less than the minimum liable to income-tax to receive interest on securities, dividends and other interest without deduction of tax at source under sections 193, 194 and 194A of the Act on furnishing a declaration, in duplicate, in the prescribed form and verified in the prescribed manner. Rule 29C and Form Nos. 15F, 15G and 15H have been inserted in the Income-tax Rules, 1962 by the Income-tax (Fifth Amendment) Rules, 1982 prescribing the forms for the purposes of section 197A and laying down the procedure for furnishing the declaration form.
The forms required for different categories have been listed below:
| Category of Tax Payer | Income Tax Section | Form | |
| Individual:Senior Citizen | Sub-section (1C) of section 197A | Form15H (pdf) | |
| Individual:Non senior Citizen | Sub-sections (1) and (1A) of section 197A | Form15G (pdf) | |
| Trusts/SocietiesAvailable from Assessing Officer | 15AASample form(pdf) |
Rule 29C of Income Tax Rules offers individual taxpayers the facility of furnishing Form 15G or 15H, as the case may be, requesting the payer of income not to deduct any tax. These forms have to be filed in duplicate and once the bank or the post office takes them on record, the entire interest is paid to the investor without any tax deduction. Important points that one needs to remember is
- Fresh forms are required to be filed each year. As incomes of investors may differ from year to year, the eligibility for furnishing the forms has to be ascertained every year.
- Secondly, for optimum benefit, these forms need to be furnished at the beginning of the fiscal such that the entire amount of interest escapes TDS. If the form is filed during the year, the tax already deducted cannot be adjusted against future tax deductions.
- This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit in three SBI bank branches with interest of or more Rs.10,000 each. You must submit the forms to each branch.
- You need to submit forms if interest on loan ,advance, debentures , bonds or say Interest income other then interest on bank exceeds Rs 5000.
Difference between forms 15G and 15H
Form 15H: Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual :
- Who is of the age of sixty-five years or more (60 years from 1st July, 2012) claiming certain receipts without deduction of tax.
- Estimated tax for the previous assessment year should be nil. That means he did not pay any tax for the previous year because his income is not coming under the taxable limit.
Form 15G: Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax of tax.
- Form 15G can be submitted by Individual below the age of 65 years (Age limit reduced to 60 Years from from 1st July, 2012)).
- The final tax on his estimated total income computed as per the provisions of the Income Tax Act should be nil.
- The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab which for financial year 2011-12 or Assessment Year 2012-13 is Rs1,80,000 for men, Rs1,90,000 for women, Rs 2,50,000 for Senior citizens,(60-80 years), Rs 5,00,000 for citizens above 80 years. Please note that these exemption limits keep on changing. For financial year 2012-13 or Assessment Year 2013-14 exemption is Rs 2,00,ooo for men and women and Rs 2,50,000 for Senior citizens,(60-80 years), Rs 5,00,000 for citizens above 80 years.Income Tax rates Since AY 1992-1993 has all the income slabs and exemptions since Assessment Year 1992-193.
Quoting from Tax expert Sandeep Shanbhag in DNA:Who is eligible for filing forms 15G, 15H and how to save TDS(Sep 2011) To further understand these provisions, let’s take the example of Mr Shah, who is 55 years old. Shah’s total income is Rs 2,90,000, of which Rs1,90,000 is earned by way of interest from bank deposits. Shah also invests 1,00,000 under Section 80C and pays a medical insurance premium of Rs15,000. Is Shah eligible to furnish Form 15G?This can be ascertained by finding out if he satisfies both the above conditions.
- The first condition is that Shah’s final tax liability should be nil. Though Shah’s gross income is Rs2,80,000 lakh, on account of his Section 80C and Section 80D deductions of Rs1,00,000 and Rs15,000 respectively, the net income falls to Rs1,75,000 lakh and consequently he is not liable to pay any tax. Therefore, Shah satisfies the first condition.
- However, we find that since his interest income of Rs1,90,000 is more than the basic exemption limit of Rs1,80,000. Shah doesn’t satisfy the second condition and hence he is not eligible to furnish Form 15G to the interest paying organisation.
On the other hand Form 15H imposes just the first condition, in that, the final tax on the investor’s estimated total income computed as per the provisions of the Income Tax Act should be nil. The second condition imposed by Form 15G is not applicable in the case of Form 15H.
For example, say Mr. Mehta, 68 years old, has a total income of Rs 3,00,000, out of which Rs45,000 is earned from the senior citizens saving scheme and the rest from bank deposits. He invests Rs 50,000 in PPF. Now, is he eligible to furnish Form 15H?
As pointed out earlier, all Mehta has to do is to ascertain his final tax liability. It doesn’t matter what amount he receives from which source; this information is irrelevant for Form 15H. We find that Mehta’s net income works out to Rs2,50,000 (Rs3,00,000 – Rs50,000). As the basic exemption limit for Mehta is also Rs2,50,000 (on account of him being a senior citizen), his net tax liability is nil and hence he is indeed eligible to submit Form 15H.
So difference between Forms 15G and 15H is that
- Form 15G is meant for non-senior citizens whereas Form 15H is meant for senior citizens only.
- The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab for Form 15G while no such condition exists for Form 15H.
The Income Tax department has been modified the Form 15H and Form 15G as per amended notification No. 11/2013 [F.NO.142/31/2012-SO(TPL)]/SO 410(E) Dated 19.02.13. The only major change in these forms, compared to the earlier versions, is the addition of a column to mention the total estimated income from all sources, including the income for which exemption from TDS is requested. The columns are also organised better. Now there is not much difference between Form 15G and 15H. (Updated on 2 Apr 2013) These differences are highlighted in the images from the forms below. 15H is a simple 2 page form while 15G is 3 page form with various schedules for declaring income from different sources.
Penalty in filling wrong form
Penalty
Myths & Facts about Form 15G & Form 15H Quoting from caclubindia:What is Form 15G and Form 15H
| Sl. No. | Myth | Fact |
| 1 | Anybody who wishes to avoid tax deduction can make use of Form 15G/15H | Only persons with income below taxable limits and Nil Tax liability can only make use of this form. |
| 2 | Once declaration is given in Form 15G/Form 15H, there is no need to declare this income in return of Income. | Irrespective of the fact whether the Form is used or not, the respective income should be compulsorily declared in return of income. |
| 3 | Once declaration is given in Form 15G/Form 15H, there is no need to pay tax on the same. | As per the provisions, only persons with NIL tax liability only can give these forms. But if there is a tax liability, they have to necessarily pay the requisite tax. On the other hand, by payment of tax they run the risk of giving a wrong declaration. Hence before giving Form 15G/15H, please be doubly careful. |
| 4 | Form 15G & 15H are submitted only to the banks/Financial Institutions/Payer. | This is partly correct. The person who receives the Form 15G/15H is required to submit one copy of the Form to the Commissioner of Income-tax . Hence the information is passed on the Income-tax department and the Income-tax Department can make further enquiries on the same. |
| 5 | Submission of Form 15G/15H once is sufficient. | No. These forms shall be submitted every Financial year at the beginning of the Financial year. |
| 6 | It is enough that irrespective of the fact that deposits are held in different branches, a single Form is sufficient. | No. These forms should be submitted to each and every branch where you hold the deposits. For example, if you hold deposits in 3 different branches of State Bank ofIndia, this declaration shall be given for each branch separately. |
| 7 | Since my Income is below taxable limits and tax is NIL , I do not have to submit the PAN details with the declaration | No. Every person giving declaration using Form 15G/15H shall compulsorily provide the PAN details along with the declaration irrespective of their Income/Tax status. Otherwise tax will be deducted @ 20% on the Interest (w.e.f 01/04/2010) |
| 8 | Form 15G/15H can be used for not deducting TDS for all types of payments (viz.,) Contract payments, Professional fees, rent,etc., | These forms can be used only for payments in the nature of Interest of Securities, Dividend, Interest other than Interest on Securities (Bank/Company Deposits) , NSS & Interest on Units. For other types of payments, these forms cannot be used. |
References: TaxGuru:Download, know, FAQ on Form 15G & 15H (Apr 2012), DNA:Who is eligible for filing forms 15G, 15H and how to save TDS(Sep 2011), YahooFinance:Minimising TDS on your fixed deposit (Apr 2012), JagoInvestor:What is Form 15G and Form 15H,(Jun 2011) Related articles:
- Fixed Deposits and Tax
- Overview of Fixed Deposits
- Income Tax Overview
- Taxing Times: In a lighter vein
The conditions under which Form 15G and 15H may be filed are similar yet with a significant difference. Hope we have been able to clarify the difference.
Good Morning sir,my father is 64 years old. he get pension of Rs.12,500/month, and on this F.Y. his 2 F.D will be mature. interest would be Approx 3,10,000/-. is he able to submit Form 15H.
I need information about form 15 G
I made some fixed deposits with bank ,my interest income is below 250000
I can submit form 15 G , as my total income is below exemption limit, when I talk with bank manager regarding this matter , bank manager ask me for showing proof that you are not working anywhere,
plz suggest me
Your total income should be below 2.5 lakh to claim exemption.
Income is classified into 5 categories given below. If you earn salary then your total income becomes more than exemption limit. Hence you cannot say to bank that don’t deduct TDS. Bank Manager is correct. You can show Form 26AS which has all the income and tax deducted.
Interest on FD is taxable as per your income slab and TDS is deducted at the rate of 10%. So if you are in 20/30% income slab you still will have to pay tax .
Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income-tax Act, 1961, and on conviction be punishable –
(i) in a case where tax sought to be evaded exceeds one lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to three years and with fine.
Please do keep our readers updated.
You can go through the article Video on Which ITR to Fill for more details.
Income from Salary : Income can be charged under this head only if there is/was an employer-employee relationship between the payer and payee. The aggregate of income, after exemptions available, is known as Gross Salary and this is charged under the head income from salary. Pensions is also taxed under the head Salaries.
Income from House Property : Any residential or commercial property that you own will be taxed, even if it is not let out, it will be considered earning rental income and you will need to pay tax on it. Rental income is taxed subject to some exemptions for example on Home Loan.
Income from Profits and Gains of Business or Profession : Income earned through business or profession (ex professional working as freelancer) is charged under this category. The income chargeable to tax is the difference between the credits received on running the business and expenses incurred taking into account deductions such as depreciation of assets, rent, travelling.
Income from Capital Gains : Any profit or gain arising from transfer of capital asset( such as property,equity or stock market,gold) held as investments are chargeable to tax under the head capital gains. The gain can be on account or short- and long-term gains based on kind of asset and time for which it is held. Our article Basics of Capital Gains discusses it in detail.
Income from other Sources : Any income that does not fall under any of the four heads of income above is taxed under the head income from other sources. Such as interest income from bank deposits, winning from game shows or lottery, gift from person other than relative :
Hi Basavaraj
I have a couple of queries for my case which I am mentioning below:
** I have worked with 3 employers and am not working since September 2015.
** Each of my employers is asking for Form 15G for PF withdrawal from each of the PF accounts, since they didn’t handle the PF transfer process smoothly earlier.
This means, that I have to submit Form 15G to each of them alongwith Form 10C and Form 19.
** Will Form 15G details be same in all the 3 forms submitted at respective organisations(except Name of Business/Occupation-which will be company name. Plz correct me if I am wrong) or not?
** I do not have any investment to show in Point #22, so I will leave that part as blank.
For point #23, I only have salary from April’15-Sep’15 to show as my income in current financial year(2015-16) and the tax for the same has already been deducted by my employer.
So, should I just mention the expected PF and pension amount in point #23 or include my salary also for Apr-Sep’15. Wouldn’t that cause tax deduction on my salary again?
** Do I need to provide expected PF and pension amount in Form 15G as well?
Please revert. This will be a great help.
Thanks!
Hi Bhumika,
The Income Tax Department has announced new forms and new procedure regarding Form 15G & Form 15H starting 1st October 2015. So please check that you are using the right form. Our article Forms to avoid TDS,15G, 15H talks about in detail.
1. Yes if you have worked in each of the company for less than 5 years than TDS would be deducted at the rate of 10% hence they are asking for 15G. So submit Form 15G to each of them along with Form 10C and Form 19
2. Yes except the details of organization and EPF information will be same.
3 No #22 or #23 in new forms
Thank you very much for providing the info about form 15g/ 15h.
Please let me know whether CA authentication is required or not on Form 15G while filing PF Claim.
What do you mean by CA Authentication?
Form has to be filled and submitted by you to the bank or finance institution. No other verification is required. Infact many banks like SBI allow form to be filled online and submitted offline. Now with changes one will soon be able to directly fill and submit the form online.
Thank u for this blog post. I seek a clarification & want to highlight one aspect as to the draconian clause and additional work created for everyone because of our so called IAS & IRS officers and the retarded CBDT Chairperson & Finance Ministry, which wants to simplify taxes for the tax payers @ the same time creates a complex mess for each one.
Income is Rs 6,30,000/- Annual From Interest Only. On this Income one cannot file Form 15G/15H anywhere. However NIL Tax is payable on this amount as given Below.
Basic Exemption Rs 2,50,000/-
Under 80C PPF Deduction Rs 1,50,000/-
Housing Loan Interest Paid Rs 2,00,000/-
Mediclaim Insurance Paid Rs 10,000/-
Balance Income=Rs 20,000/- Tax+Cess on Income=Rs 2,060/- Tax Rebate Under Section 87A=Rs 2000/- Balance tax payable Rs 60/-. So based on the above TDS would be deducted @ 10 % i.e 63,000/- and then it would be refunded entirely after filing of Return with Interest u/s 244A. Kindly see the extra & additional work involved for everyone i.e the deductor, the TDS Return filer, Data Entry operator in 26AS and correct credit for taxes in the end. God Forbid if anyone messes up in this chain tax credit will not be given.
My Question is if I file form 15G/15H even though I cannot what prosecution can the govt do when in the end tax payable is Rs 60/- which can/has been paid by Self Assessment Tax before filing of Return ?
Based on the above I am giving Form 15-G for many many years even though I cannot @ many places and avoiding TDS as in the end my tax liability is NIL !
Colonel Zaysen
This is a plight of many tax payers. Now govt is taking steps to improve this like online 15G/H form , simplification of forms(has done away with 15G/h) but it will take time.
Thank you very much for providing the info about form 15g/ 15h.
Please let me know whether CA authentication is required or not on Form 15G while filing PF Claim.
Hi Sir,
Good evening. I have worked for an organization from June 2011 to Sep 2015. I just want to withdraw pf as I have resigned from current job and moving abroad on 5 years work visa. Just want to understand what all the other documents I need to provide to withdraw pf:
I have filled Form – 19, Form 10C and Form 15G.
Appreciate your revert on this.
Congrats Siva and Best of Luck.
You have got the forms right.
You can withdraw EPF both the employee and employer contribution by submitting Form 19. Regarding EPS contribution the form that one can fill are given in table below
Your Age EPS Contribution Form Instructions
Less than 50 years Less than 10 Years 10C Withdrawal/Scheme Certificate
Less than 50 years More than 10 Years 10C Scheme Certificate(No Withdrawal benefit allowed)
Form 15G so that no TDS is deducted but as you are withdrawing before 5 years EPF withdrawal will be taxable
Our article Forms to avoid TDS,15G, 15H, and EPF Withdrawal Forms Form 19, Form 20,Form 10C,Form 10D,Form 51F explains it in detail
Hi Sir,
I worked in a company from 07-Aug-2013 to 30-Sep-2014 and resigned .I didn’t join anywhere after that.Now I plan to withdraw my PF amount and while checking with my old company,they told me to submit Form 15G to avoid TDS.
I have some doubts in filling the form.
1) What should I write in Assessment Year?
2) What should I write in Last Assessment year?
3) I don’t have any deposits/mutual funds/securities..So can I leave column no.22?
Pls help
Regards,
jithin
Sir your company is suggesting you to fill form 15G so that no TDS is deducted.
Though no TDS is deducted as you are withdrawing before 5 years you need to pay tax on withdrawal.
From Oct 1 2015, the forms have changed so please read our How to Fill Form 15G? How to Fill Form 15H? for details.
If you share the filled form with our readers it would help many people.
Hi, My age is 35. i need help in understanding on whether form 15 required in my case or not. if required what data should go in to the form.
1. I employed from aug 2007 to dec 2009 in india and moved ot onsite till sep 2013. currently i am not employed in india from sep 2013 but a citizen of india still. now if i would like to with draw PF in Oct 2015, do i need to submit form 15..
2. Also, I with drawn my mutual funds in Dec 2014 which is a sum of 3,50,000 approx. should i address this some where in form 15G.
3. I last filed taxes for 2008-09 as that was the last time i had income in india. what has to be filled in point 3 and point 14 of Form 15g.
4. I have one mutual fund conributed in 2007 but not with drawn still. should i mention this too in form 15g.
Apart from these, i do not have any income in india.
Please help in getting these resolved to fill form 15g.
Thanks..
Hi,
My job tenure is jan 2011 to march 2013. i want to withdraw my pf for this tenure.
my queries are
1. Do i have to fill 3 forms (for each year 2011-12, 12-13, 13-14).
2. What will be my assessment year and last assessed year for this period as i’m with drawing it in 2015?
1. Just one form
2. Assessment year will be AY 2016-17
You can go through our article EPF Withdrawal before 5 years,TDS,Form 15G,Tax and ITR for more details
Hi,
I am asked to fill Form 15G for withdrawal of my PF
I have a doubt in filling the same
Pls help me
1. My pf contribution period is May2013 to Oct2014
Since i am withdrawing now, what will be ‘Assessment Year’ and ‘Last Assessment Year in which assessed’
2. What should i input in column 7 and 10 ?
7] Assessed in which Ward / Circle
10] AO Code (whom assessed last time)
my jurisdiction as below
Area Code : CHE
AO Type : W
RANGE CODE : 275
AO Number : 2
3. I dont have any income from those mentioned in schedule 1 to 5
so can i leave column 22 blank ?
Thanks and Regards,
Manu Sidharthan
Sir,
I have a few queries. Request assistance.
1. I was working since Dec 2003 till Feb 2015 with 3 companies and had the PF balances transferred. There might be a delay of one to two month between the last date of the previous company to the first day at the next company, due to finding a job and joining in date. My PF balance should be above 6 lakhs (as it includes PF balances transferred from previous companies) and given the no of years worked with the three companies put together, I should be entitled to tax free PF income, right? My company is insisting on Form 15 G. Should I submit it?
2. Dividend received from shares is tax free isn’t it. Why should this still be declared in Form 15 G? Also, as there is no way of knowing the dividend income that one may receive for the year FY 2015-2016, how will we know the amount to be filled in? Alternatively, should we mention the dividend income received in the FY 2014-2015 in item 22? I am confused with the statement “Estimated total income of the previous year in income mentioned in col 22 to be included”
3. Is the interest on savings account taxable if the interest income exceeds Rs 10000 in a year. Is this Rs 10000 the max limit including interest received from all bank accounts or is it the limit for every bank account. i.e., if someone holds 3 savings bank a/cs, does he/she have the exemption at Rs 30000 or would it still be Rs 10000 only?
4. Should the total amount in the savings bank a/c be listed in schedule III, irrespective of the interest income not exceeding the exemption limit (as referred in question 3 above) and the total taxable income being less than 2,50,000?
5. If there are no plans to sell shares or mutual funds held in the FY 2015-2016, should the income still be declared in the schedules I and IV? Also, since I hold only equity tax free Mutual funds and long term shares(>1 year) should this income be declared?
6. For the total income to be filled in item 23, is this taxable income or just total income. Ex: If total income is Rs 375000 and there are deductions upto Rs 150000 (medical, LIC and other investments), should this cell have Rs 370000 listed or would it be Rs 225000?
Please help clarify the above. Thank you so much in advance
Hi,
When they say the tax liability should be Nil, what difference does it make if the total income is above the minimum income not chargeable to tax ?
I have total salary income of around 6 Lacs for AY 2016–17 and I just left the Job. I am withdrawing my PF. TDS for this AY has already been deducted @30% slab and which now is in excess of 50000 for AY 2016-17.
So now my tax liability is NIL but my total income is above 250000.
TDS for the current year is already in excess for Rs 50000 and i do not want TDS to get deducted on my PF withdrawal.
Now can i file 15G ?
There are three things : Tax TDS and basic exemption limit
If you have withdrawn your PF before 5 years of service, TDS will be deducted. From 1 June 2015 TDS is at the rate of 10%. So please verify.
Total taxable income for AY 2016-17: Salary till you were working + PF withdrawal(in different cagetgories) + Interest on Saving Bank account + Interest on FD if any + House property+ Capital Gain..
One can owe tax to govt or vice-verse(when one claims refund) during the financial year but at times of filing your ITR you should not owe anything to govt. ie your tax liability should be 0.
If you just have income from salary then the office takes care of calculating tax and deducting it.
But in all the other cases,mostly, you have to take care yourself.
Now lets come to Form 15G/15H. Major difference is that form 15G is for those less than 60 years of age and 15H for senior citizens.
The purpose of filling form 15G is ask the organization not to deduct TDS for you.
After getting the TDS you cannot fill 15G.
But reclaim it by asking for refund while filing ITR
I have been working from (Sep 11 -Dec 14) in my previous company. Now I have been asked to submit form 15G to process withdrawal request.My questions are
1. What should I fill in assessment year? I feel its 2015-2016 because i am submitting form 15G for 2014-2015. Correct me if I am wrong.
2.In my form 15G, column no 22 would be blank. So,column no 23 will be my taxable income alone is it?
Thanks!
Your income from PF withdrawal will be in which year, as it FY 2015-16 so Assessment Year should be 2016-17
In Column/Row 22 Estimated total income:
You are required to enter estimated total income of current year. Do sum of the total income from all sources and tick the relevant boxes.The amount should be from following sources:
Interest on securities ,
Interest on sum other than securities ( interest on FD etc.),
Interest on mutual fund units., withdrawals of NSC.
Dividend on shares,
If you don’t have any such income you can leave it. if you have income from these sources fill appropriate schedule
I have a query regarding form 15g and PF withdrawl.
I have left my employment on march 2015 (Employment dates : form 27 Dec 2006 to 27 march 2015 ) and applied for EPF this month. I have been asked to submit 2 copies of form 15G and pan card xerox copy.
As i have completed more than 5 years of continious service in single organisation still TDS will be deducted.
That’s surprising. As you rightly said you have completed 5 years so your withdrawal should be tax free.
Please verify with your employer. If they insist fill form 15G and submit to avoid TDS
Do keep us updated
I worked for my company from 30 April 2010 to June 11 2015 and I have been asked to submit the form 15G though I have completed more than 5 years with them.. Please suggest..
Do I really need to submit it to avoid Tax Despite of completing 5 years with them..
sir, i have 1 querry. i am working in the payroll department. my one employees resigned. i was fill up his form 19 & 10c.but forgot filling form 15G. pf officer deducted his tds Rs.5231. i know its my mistake but its new rule for me, perhaps i was forgot. he want to his payment (rs. 5231/-).
How can give his payment i don’t understand. if you know solution .pls reply.
What’s done is done and mistakes do happen.
TDS was deducted because EPF withdrawal was for less than 5 years of service.
As withdrawal is for less than 5 years of service, various components of past EPF will be taxed.
Solution is that the employee has to see if total taxable income is less than basic exemption limit.
If it’s less than basic exemption limit he can ask for refund
If its more he has to pay self assessment tax
Sir, I have a basic query. My grandfather has received interest income (on Fixed Deposit) of more than Rs. 10000/- in the previous year. However, since there is nil taxable income, he filled form 15H and got relief from TDS. Now, while preparing his Return of Income, Do i have to declare the interest income in the “Income from Other Sources”?
The problem is, if I do declare it, it asks me to fill details such as ‘Tax Deduction Year’ & ‘TDS Certificate No.’ but as TDS has not been deducted I can’t specify those so is it alright if I dont declare the interest income?
Sir you are filing your income tax return for your grandfather, impressive.
You have to show Interest as Income from Other sources. If you check Form 26AS of your grandfather you would see in Part A1 Details of Tax deducted at Source for Form 15G/15H. So govt know that your grandfather has earned interest income.
As explained in our article Fixed Deposit , Interest , TDS, Tax,Income Tax Return, Refund
Income from Fixed Deposit needs to be shown as Interest portion of Income from other sources.
TDS (if deducted) on the interest income should be claimed by the individual in the income tax return and should be shown in TDS section
I have a query regarding form 15g.
I have left my employment on April 2014 and applied for EPF this month. I have been asked to submit form 15G but i do have some doubts regarding the same
I have no income source which can be put against any schedules mentioned so i am pretty much safe from and tax deduction. However my doubts are
1. I have received form 16 for the three years of my previous employment but i have never bothered to file them.
please tell me which details should i furnish in the columns 7,10, 14 and 21.
I would like to be sure that the form i am sending is complete lest they delay the process.
Thanking you in advance as i am sure the reply will be posted very shortly 🙂
cheers.
You can checkout this video How to fill form 15 G for PF withdrawal from scratch (Live) (Hindi version) for more information.
Dear Sir,
Please say that S.No:22&23 in FORM-15G is eligible for PF withdrawal in AY 2015-16.That means for submitting FORM-15G for PF withdrawal,which option i have to choose from S.No:22 in FORM-15G?
Kindly guide me as i am caught in a big dilemma!…
I have deposited form 15g with my bank today on 02.05.15 saturday.
My doubted question is that i have not earned a penny from 1st jan 2014 to 30th april 2015.ie no salary income or from any source.
I had an FD done from my savings ac for 5 lakh rupee on 30 july,2014 which will get mature on 31 july 2015.
my mature value is 5.47 lakhs.I had got message from bank to deposit 15g to avoid TDS.So i have filed form 15 G.
Now since i have got a job and i will be joining job around from 15th may,2015 with salary of around 35K and ctc around
4.2L PA.Now i have come to know from your posts in this wealth18 that i have wrongly filed 15 g form.I want to know what i can do to correct my mistake.the salary i will get from my company will be after deducting tax wich will be deposited in IT dept.Now can i be fined for my mistake i did ignorantly.since i have first time made an FD and filed 15 G form.I am deeply worried since i have learned there is hefty penalty and even imprisonment.Kindly reply me at the earliest i am very much worried.
Also i have read in your post that now in form 15 g there is one column where we have to write our estimated income for the financial year but i have not written any thing like this on form 15 g since i have not found any column related to it where i must have declared my estimated income from my salary.please help me.what best i can do.
Sir please don’t get worked up. No one should come after you.
You have filed Form 15G for which year FY 2014-15 or FY 2015-16?
Was your total income below 2.5 lakh?
Income from salary
Income from interest on Fixed Deposit : The income is interest and not maturity amount. So your income from FD is 47,000.
Income from Saving Bank account : If it’s less than 10,000 it should not be accounted and if more than 10,000 ex 12,000 then excess amount ie 2000 should be taken as Income from other sources.
When you fill Form 15G TDS is not cut. If your income is above 2.5 lakh then you have pay tax on your Total income.
As TDS was not cut it would be reflected in your Form 26AS.
While filing Income tax return(ITR) for FY 2014-15 by 31 Jul 2015 please include your FD income and things should be fine.
Hi Kirti,
I have some general question on 15G
1) I am trying to apply for my PF and they have asked me for the 15G form.
2) I resigned from my previous organisation in the month of Jan 2015. So what would be my assessment year and what would be the last assessment year?
3) Should I mention my LIC policy under any of those investments, if yes which one?
Kindly respond asap
1. They have asked for Form 15G so that they don’t have to cut TDS. From Jun 1 2015 rule is to deduct tax at 10%.
Idea of Form 15G is that if your income is below exemption limit which is 2.5 lakh per year then you don’t need to pay tax.
If TDS is cut then you would have to ask for refund. A question is Is your income less than 2.5 lakh ?
TDS for PF comes into play when number of years of EPF contribution is less than 5 years. So how many years were you working? How many years contributing towards EPF?
2. Question is tricky so please confirm it with your employer. As EPF is being withdrawn if TDS is cut it would show up in this year Form 26AS. So AY should be 2016-17 . Last assessment year is 2015-16
3. No LIC policy is not an investment it is insurance. You need to mention if you earn income
Schedule I : Dividend from shares
Schedule II: Dividend from bond,shares
In Schedule-III details of the sums given by the declarant on interest should be entered. Here you need to fill FD number, deposit amount, start date of the deposit, tenure of the deposit and interest rate etc.
Schedule 3:
Can Form 15H be submitted to Deductors other than Banks also? or this form is just of Banks alone?
Form 15G and Form 15H are forms which can help a person avoid TDS incase one does not have to pay income tax at the end of the year. Form 15H is for senior citizens and form 15G is for others
Mostly people use it to avoid TDS for FDs in Banks.
Dear Sir,
Is 15G is required to submit in NRE fixed deposit or not.
Regards
Deepak Gour
NRIs, irrespective of their age, are not eligible to file Form 15G or 15H . You can read about it from Sandeep Shanbag at DNA website
Thanks for the very useful information.
I would like to know the TDS deductions for NRIs.
I m an NRI living in UAE. So no tax applicable. But if I m putting a FD with my NRE account. How much TDS will be dedcuted and how can I be exempted from that. What is the expemption limit.
For example, we can take FD of 20 00000 INR.
First NRIs, irrespective of their age, are not eligible to file Form 15G or 15H as the case may be.
NRI’s opening Fixed Deposit can avail benefit of the lower TDS depending on the overseas country of resident popularly called as Double Taxation Avoidance Agreement (DTAA). DTAA is an agreement entered by India with various countries. NRI customers residing in countries that have signed DTAA with India will be eligible for a DTAA applicable rate of Lower TDS on the interest earned from the Term Deposits booked out of the funds remitted from overseas or from their NRE accounts.
These lower TDS rates (lesser than 30.9%) for the respective countries are decided by Income tax authorities. E.g. for USA, the lower rate is 15%, for UAE it is 12.5% etc.
In order to avail lower TDS, customers need to fulfill the following requirements:
The customer should be a tax Non-Resident as per the Indian Income Tax Act.
The customer should be a resident (tax resident) of the DTAA country and should be entitled to Treaty Benefits as per the criteria defined in the respective DTAA.
The customer should be the beneficial owner of the funds and interest thereon.
If one is desirous of availing the rate of deduction of tax as per the DTAA, the same will be applicable only on your submitting the relevant documents along with your PAN Number usually before beginning of financial year, every year. PAN updation is mandatory to avail of DTAA.
One set of the below documents is required per Customer ID.
DTAA Annexure – Declaration that the client was an NRI during the year in which tax is sort to be deducted & that he does not have any permanent establishment in India.
Original or certified true copies of the ‘Tax Residency Certificate’ (TRC) from the income-tax authorities.TRC are issued by the tax/government authority of the country where the NRI resides. For tax residents of countries where there is no income tax, a “Self-declaration” shall be submitted by the depositor to the Branch.
Self attested copy of passport & visa.
For UAE and KUWAIT ONLY- photocopy of the passport pages which give the details of entry and exit.(to ascertain 183 days stay in a calendar year for UAE and 183 days in a financial year for Kuwait)
If no certificate under DTAA is submitted by the depositor, then Income Tax at a rate of 30.90% will be deducted at source on interest earned in the NRO accounts/deposits irrespective of the amount of interest.
Does that answer your question vishal. You can also check out comments in the post Fixed Deposits and Tax where we have tried to answer for Nesha
I would like to know if one has to submit 15G for each deposit in a bank or a 15G can cover all FD’s in a bank for the year.
My bank officer says, i have to submit individual 15G’s for each deposit.
Please let me know.
Thanks in advance.
Not sure Srinivas. The Form 15G is pretty long one with declarations about securities, NSC, dividends etc. Didn’t find any reference to Fixed Deposit account number.
I assume you have to go with what bank officer says and submit multiple declarations.
In the meanwhile shall try to find about it from bank near my area and update.
Thank you for the response.
Thanks for appreciating it.
As per my information, 15G is required to be submitted for each branch.
Not sure for the same branch, several 15G are required
You are right Naresh.
As per my understanding – Form 15G has to be submitted for FD with ownership details same.
For ex if Mr Shah has opened a FD with him as primary account holder and his wife as secondary for 1 year, 3 year then for all these FDs only one 15G is sufficient.
But if he opens one FD with him as primary and other with his wife as primary then these are separate hence he needs to submit 2 form 15G.
What are your thoughts on it?
My wife is not working so if i open FD under her account (interest more than 10k), Is she eligible to file form 15G? I am earning more than 3 lakhs.
Thanks
Let take example of Mr Aryan Sharma. He gift’s some of his money to his wife, Anjali, who is not earning anything otherwise. Anjali invests that money in a fixed deposit and earns interest. Logic being that since his wife doesn’t have any income, interest earned on such money would be below taxable limit and therefore, she won’t have to pay any tax on such an income.
In a scenario like this, interest earned from the fixed deposit will be taxed in the hands of Aryan and not Anjali. So there is no tax saving for Aryan.
People think if they transfer their money or assets to family members then they would be able to avoid the tax. To counteract such practices of Tax Avoidance necessary provisions have been incoroprated in the Section 60 to 64 of the Income Tax Act. In technical terms it is called as Clubbing of Income.
So your wife might be eligible to submit form 15G but you will be taxed.
A workaround often suggested is:
Give her an interest free loan so that she can generate her own money and return the sum back to me in due course of time
But please verify with the CA.
I have submitted for 15H this year as my income was below the 2.5L limit. However, it was recently pointed out to me that I might have made an error in my calculations. Basically, I did not incorporate “ACCRUED INTEREST”m in my calculations. My net income in Form 15H is shown as 2.43L..however, with the ACCRUED interest, it is likely to jump to 2.56L.
I am uncertain how to handle this. Is there still an option for me to do a correction / rectification of my 15H? I am concerned that ITO might flag me for incorrect submiission subject to penal consequences.
I request the forum members to kindly guide me here. You help is much appreciated.
Thank you.
Sad to hear that Mr Brij. As per the law Consequences of False/Incorrect Declaration are given below. But before you panic please check if the TDS was deducted by checking Form 26AS. There have been cases where Form 15H was submitted but bank did not deduct it. If no TDS has been deducted then you can file return. If TDS has been deducted then please talk to Chartered Accountant or Income tax lawyer.
:-
Any person making a false statement in the declaration shall be liable to prosecution under section 277 of the Income-tax Act, 1961, and on conviction be punishable –
(i) in a case where tax sought to be evaded exceeds one lakh rupees, with rigorous imprisonment which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with rigorous imprisonment which shall not be less than three months but which may extend to three years and with fine.
Please do keep our readers updated.
I have taking pension of 101500 p.a. And also fixed deposit is 120000. Can i submitt 15G to dedect TDS. and i need to submitt tax return. Plese help.
Maam,
As you seem to be senior citizen the exemption limit for senior citizen is 2,50,000. If you have no other income and Tax on your Fixed Deposit is more than 10,000 Rs in a year, to avoid TDS you can submit Form 15G. If interest is deducted the only way to reclaim is to file a return. Please get in touch with your bank and submit the form.
Good information. Is it necessary to file return for senior citizen who’s total annual income for financial year 2011-12 is less then Rs. 2,00,000 ?
You need to file an Income Tax Return if your Total Taxable Income exceeds the basic exemption limit before taking into account deductions, i.e., tax saving investments. The basic exemption limit for financial year 2011-2012 and 2010-2011 is
Resident Female Rs.1,90,000
Resident Senior Citizen Rs.2,40,000
(Age > = 65 yrs as on 31st March of Financial year)
Others (Resident Male, All Non-Residents and All Resident but Not Ordinarily Residents) Rs.1,60,000
You do not need to file an Income Tax Return if your total taxable income does not exceed the basic exemption limit before taking into account deductions, even though you may have a PAN.
But if have some TDS deducted and want to claim it you have to file Income Tax return