Demystifying Form 15G and Form15H: Understanding Tax Exemptions

Demystifying Form 15G and Form15H: Understanding Tax Exemptions


Form 15G and Form 15H are commonly used by individuals in India to get tax exemptions on their income. By understanding the purpose and requirements of these forms, individuals can effectively utilise them to reduce tax liabilities and manage their finances more efficiently. Read on to get an overview of Forms 15G and 15H as well as the eligibility criteria, conditions, and the submission process.

Overview of Form 15G and Form 15H

Form 15G: This form is primarily used by individuals below a certain age threshold (below 60 years) to declare that their total income for the financial year is below the taxable limit. By submitting Form 15G, individuals can request the payer not to deduct tax at source (TDS) on their income.

Form 15H: Unlike Form 15G, Form 15H is intended for senior citizens (60 years and above) who fulfil certain criteria. By submitting this form, eligible individuals can declare that they do not have any tax liability as their income falls below the taxable limit. Similar to Form 15G, Form 15H helps senior citizens avoid TDS deductions on their income.

Eligibility Criteria and Conditions

To be eligible to submit Form 15G or Form 15H, individuals must fulfil specific conditions including the following:

  • The total income for the financial year should be below the taxable limit.
  • The individual should be a resident of India for income tax purposes.
  • The individual should have a valid Permanent Account Number (PAN).
  • The interest income, if any, should be from specified sources such as savings bank accounts, fixed deposits, or recurring deposits.
  • The final tax liability after considering deductions and exemptions should be nil.

Submission Process for Form 15G and Form 15H:

The submission process for Form 15G and Form 15H involves the following steps:

  • Obtain the respective form: Download either form from the official website of the Income Tax Department or obtain it from the bank or payer.
  • Fill in the required details: Provide accurate information in the form, including personal details, income details, and the PAN.
  • Submit the form: Submit the filled and signed form to the relevant bank or payer. Ensure to retain a copy of the submitted form for future reference.
  • Renewal and validity: Forms 15G and 15H are valid for one financial year. To continue enjoying the tax exemption, individuals need to submit a fresh form for each financial year providing they still meet the eligibility criteria.

Conclusion

Forms 15G and 15H serve as essential tools for individuals to claim tax exemption on their income. By understanding the overview, eligibility criteria, and submission process of these forms, individuals can effectively utilise them to manage their tax liabilities. 

It is advisable to consult with a tax professional or refer to the official guidelines provided by the Income Tax Department for accurate and updated information regarding Form 15G and Form 15H. Learn more about tax exemptions and forms with Federal Bank. Explore our banking services today.