Thursday, April 19, 2012

Submission of Form 15G or Form 15H




Form 15G and Form 15H is Self declarations by the depositor not to deduct tax on the fixed deposits(mainly dividend /interest from securities, Interest on fixed deposits, Interest on units of National Saving Schemes)




Any one whose income is below the taxable limit has to fill form 15G / 15H and submit in the bank. You cannot submit the Form 15G/H if your income is taxable.



Form 15G and Form 15H are forms to be filled by an Individual or a person(not being a company or firm) which help an Individual to avoid TDS (Tax deducted at Source) in case one does not have to pay income tax at the end of the year. 

Important points related to Form 15G/Form H
  • Only persons with income below taxable limits can only make use of this form.
  •  As per the provisions, only persons with NIL tax liability only can give these forms. 
  •   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 of India, this declaration shall be given for each branch separately.
  •  These forms can be used only for payments in the nature of Interest / dividend  from securities, Interest on fixed deposits, Interest on units of National Saving Schemes of  For other types of payments, these forms cannot be used.
What other documents are required along with form 15G/H

Copy of the Pan card to be attached (If it is not updated in bank records) PAN details are compulsory for TDS eligible payments as per this wef 01.04.2010(u/s 206AA), in absence of PAN details, Form 15G/H and other exemptions certificates will be invalid even if submitted and Penal TDS will be applicable. Section 206AA is related to "every person who receives income on which TDS is deductible shall furnish his Pan, failing which TDS shall be deducted at the rate of 20% in case of Domestic deposits and 30.90% in case of NRO depositis"


Forms (Revised)





When to Submit this form

This form shall be submitted every Financial year at the beginning of the Financial year.


Who can Submit Form 15G/15H 

Form 15G shall be given by persons below 60 years of age.
Form 15H shall be given by persons above 60 years of age. (Senior Citizens)


“Person” means Individual (or) a person (not being a company or a firm). Hence even HUFs and Association of Persons can also make use of these forms.

Income exemption limits have been revised as per the latest finance Bill, 2012 as follows
 

How to avoid tax deducted at source on Fixed Deposits

 If the investor submits Form 15G stating that he has no taxable income, then the bank would not deduct any TDS from the interest earned. For senior citizens, the requisite form is 15H to avoid TDS.

When will you have to pay tax on Fixed Deposits?

 If the interest earned under FD exceeds Rs 10,000 in a financial year, then it would be eligible for tax deduction at source (TDS) at 10 per cent plus 3 per cent education cess i.e total 10.3 per cent of the interest earned.


How to receive tax deductions if you invest in Fixed Deposits?

The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income. However interest received on the FD is taxable. The interest earned under the FD is taxable under the head 'Income from other Sources'.
The investment in a recurring deposit is not considered for deduction u/s 80C
There is no income tax benefit available for a recurring deposit, also note that sec 80C benefit is not available even if the recurring deposit is for a period of 5 years or more.


How to fill form 15G or 15H (FOR FY 2013-14)







Also refer

While filling the Form 15H - asking Area code and Ao code, How to get that??

9 comments:

  1. who cannot submit 15g/15h form

    ReplyDelete
    Replies
    1. If your income is taxable then you can't submit Form 15G/15H
      The form 15G/ 15H are submitted to banks by depositors who DO NOT want that TDS be deducted from their interest earned on fixed deposits.

      Delete
  2. I am 17 and i dont have pan card, does the bank will deduct tax on my fixed deposit?

    ReplyDelete
    Replies


    1. As you mentioned above that you are minor, so the guardian of the minor will have to pay tax or tax will be deducted at source, if it exceeds Rs.10000 in a financial year.

      Tax rule on interest earned on fixed deposits

      The interest earned under an FD is taxable under "income from other sources". The amount invested under 80C of the Income Tax Act is exempt but interest earned under such investments is taxable.

      If the interest earned under FD exceeds Rs.10,000 in a financial year, it would be eligible for tax deduction at source (TDS) at 10 per cent plus 3 per cent education cess, therefore a total 10.3 per cent of the interest earned.

      Delete
  3. what is last date og sumbit my 15g/15g assement year 2013-2014
    please reply fast

    ReplyDelete
    Replies


    1. This form shall be submitted every Financial year at the beginning of the Financial year. 
      In the case of interest is paid on monthly basis cut of time is 30th April, and other case 30th June.
      Best option is submit as early as possible.

      Delete
  4. Replies
    1. Don't forget to take the acknowledgment recipt of form 15g/h

      Delete
    2. Submit this form before the first payment of interest.

      Delete

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