Home Banking Income Tax What is Form 15G or 15H (Download form 15G, 15H)

What is Form 15G or 15H (Download form 15G, 15H)

Forms 15G or 15H can save you from TDS on your interest income earned if interest income exceeds Rs 10,000 in a year

Forms 15G or 15H can save you from TDS on your interest income earned if your income is below the exemption limit.

According to the TDS rules S/194A, if interest income exceeds Rs 10,000 in a year, 10% tax will be deducted at source. If the investor has not furnished his PAN details, the TDS rate will be higher at 20%. However, if the investor's total taxable income is below the basic exemption limit, he can submit a declaration to avoid TDS. Form 15G is to be used by individuals below 60 years, HUFs and trusts.

Lets summarise conditions for saving on TDS deduction:

Conditions for availing benefit	Form No. 15G	Form No. 15H
Resident / Non Resident	Only Resident	Only Resident
Status of Assessee	All except company	Only Individual
Age	Less than 60Yrs	60 Yrs & Above
Interest Income	Should exceed Rs. 10,000 less than Rs. 2.5 Lacs	May exceed Rs. 2.5 Lacs
Total Income including Interest	Should be less than Rs. 2.5 Lacs	May exceed Rs. 2.5 Lacs
Tax Liability	Should be NIL	Should be NIL