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Know everything about Form 15G and Form 15H

Fixed Deposits are one of the most preferred investment options for most investors due to fixed interest rate and attractive returns. However, the interest earned from a Fixed Deposit is fully taxable. As per the recent Interim Budget, TDS threshold has been raised to Rs. 40,000 from Rs. 10,000 for banks and post office deposits. For those whose interest earnings are greater than this amount, Form 15G and Form 15H can help you avoid the TDS, right at the start of the fiscal year.

What are Forms 15G and 15H?

When you invest in Fixed Deposits, you may get your interest payouts at maturity or at periodic intervals if you choose a Non-Cumulative Fixed Deposit . If the total interest amount you earn from FDs exceeds the minimum threshold amount, your financier needs to deduct the TDS as per Section 194A of Income Tax Act, 1961. However, people who do not fall in the Income Tax bracket do not have to pay TDS on their interest income. In such cases, filing Form 15G/ 15H could help you. All you have to do is simply file Forms 15G and 15H at the start of the fiscal year, with your financier.

What is difference between Forms 15G and Form 15H?

When it comes to understanding the importance of these forms, most people try to understand the difference between Form 15G and 15H, which are similar in many ways, but differ in terms of their use cases. Read along to know more about how these forms differ.

What is Form 15G?

Form 15G for fixed deposit is for regular investors, who are below 60 years of age. Form 15G can also be used by Hindu Undivided Families (HUF), trust and body of individuals.

To be eligible to furnish Form 15G, here are some conditions to be fulfilled:

  • The final tax on your estimated total income computed, as per provisions of the Income Tax Act.
  • The aggregate of the interest income received during the financial year should fall in the basic exemption slab, for the relevant assessment year.

However, these forms cannot be submitted by an NRI, and need to be only submitted by an individual, and not companies.

What is Form 15H?

You can furnish Form 15H for fixed deposit, if you meet the following conditions:

  • You must be an individual and an Indian Resident.
  • You should be at least 60 years old.
  • The tax computed on your total income should be nil.

How to fill Form 15G or Form 15H?

Once you’ve met the required conditions for furnishing Forms 15G and 15H, you can start filling them. Are you wondering how to fill Form 15G or Form 15H? It’s easy. Here’s are the steps you need to take:

  • Fill in the different fields in Form 15G and Form 15H.
  • Attach your PAN copy with the declaration
  • Submit the Forms to your financial institution.

If you’re avoiding long queues and arduous processes, consider filing these forms online.

When to submit Form 15G or Form 15H?

Both Forms 15G and 15H are valid for 1 year, and should be submitted to your financial institution at the start of the year. You must ensure that your financier does not deduct the tax, before you furnish the forms, because the bank may not be able to refund it. To get your money back, you may need to file your ITR and claim a refund of your TDS amount.

How to download Form 15G and Form 15H PDF?

To download Form 15G or Form 15H, here’s what you need to do:

  • Visit the Income Tax Department Website.
  • Under ‘Frequently used Forms’, look for Form 15G or Form 15H, depending on your requirement.
  • Click on the PDF icon next to it and download the form

Once you’ve downloaded the form, prepare and print 3 copies for it. Sign and submit the printed documents to your financial institution.

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