Financial institutions levy TDS (Tax Deducted at Source) when your interest income from investments such as fixed deposits, Senior Citizen Saving Scheme, etc., crosses a certain amount. The basic difference between these forms is Form 15 is for senior citizens who are 60 years of age or older and Form 15G is for those individuals who are less than 60 years.
While, you can initiate the process of getting a TDS refund, you can only do so after you file your income tax returns at the beginning of the financial year. However, if you have no tax liability or if it is within the exempt amount, you can submit Form 15G or 15H to prevent TDS.
Ideally, you should submit Form 15G or 15H at the beginning of the financial year and not at the end of the year. It must be kept in mind that these forms are valid for one financial year only. This means you must submit these forms every year if you are eligible. For instance, if you have a fixed deposit, you must submit the form to enjoy the benefits of Form 15G or 15H for fixed deposits. Not submitting the form on time will result in the amount being deducted as TDS, so be sure to submit the form as per the deadline.
However, you can only submit one form, either Form 15G or Form 15H.
Take a look at which one is ideal for you.
Who can submit Form 15G?
- You must be an Indian resident
- You must be an individual or HUF and not a company to submit Form 15G
- You must be below the age of 60 years
- You must have nil tax to be paid on your total income
- You must have the total interest income less than the exemption limit i.e. Rs.2,50,000 for the financial year
Who can submit Form 15H?
- You must be a resident of India
- You must be an individual
- You must be above 60 years of age, or you must have attained the age of 60 years in the year for which you are submitting the form
- You must have nil tax liability on your total income for the year under consideration
- You must have total interest income less than the exemption limit i.e. Rs.3,00,000 for the financial year if you are between 60 and 80 years of age, or Rs.5,00,000 if you are over 80 years of age
Apart from interest income there are other situations too when an individual is required to submit these forms. These include TDS on Post-office deposits, TDS on EPF withdrawal, TDS on Rent, TDS on Insurance Commission and so on.
You must submit Form 15G and 15H only if you conform to the eligibility criteria. If you do so otherwise, you will face a penalty and/or a jail sentence. Besides, ensure that you fill in all your details correctly. The form must be submitted with your valid PAN card, a cover letter in the beginning of each financial year.
By Aman Khanna
who is a blogger and working in the domain of Investment management.