Important points for understanding above example.
Interest income is less than basic exemption limit Please note that benefits of Form 15G and 15H cannot be claimed by Non-residents.Įxample to understand who can submit Form 15G and form 15H Age The total interest income subject for the year is less than the basic exemption limit of that year, which is Rs.2.5 lakh for financial year 2020-21 (AY 2021-22) Tax calculated on your Total Income is Nil Tax calculated on your total income is Nil Resident individual aged 60 years or more i.e. Resident Individual or HUF or trust or any other assessee but not a company or a firm with age less than 60 years Some banks allow you to submit these forms online through the bank’s website. However, if your total income is below the taxable limit, you can submit Form 15G and 15H to the bank and request them not to deduct any TDS.ĬBDT has extended the due date for filing Form 15G/ 15H from 31st March 2021 to 30th June 2021 for FY 2020-21 What are Form 15G and Form 15H?įorm 15G and Form 15H are self-declaration forms that an individual submits to the bank requesting not to deduct TDS on interest income as their income is below the basic exemption limit.įor this, providing PAN is compulsory. The bank aggregates the interest on deposits held in all its branches to calculate this limit. Archit Gupta, Founder & CEO, says, "The wordings on Form15G/Form15H mention that an individual is required to declare the total income where tax payable is nil.What can you do to make sure the bank does not deduct TDS on interest if your total income is not taxable?īanks have to deduct TDS when your interest income is more than Rs.40,000 in a year for individuals other than senior citizens (for senior citizens, the limit is Rs.50,000) under section 194A of the Income Tax Act. The total income mentioned in the form is the net taxable income on which the taxpayer's estimated total tax payable is nil. This form should only be submitted by an individual if tax-liability is zero." (Gross total income is the income which is received by you from all sources. Net taxable income refers to the income arrived at after subtracting all the tax-breaks, as applicable to you, from your gross total income.) Abhishek Soni, CEO, tax2win.in says, "For FY2019-20, as there is no tax payable if your taxable income does not exceed Rs 5 lakh, such individuals can submit the Form 15G/Form15H, as applicable. This total income on the form is the net taxable income after claiming all the deductions available to him." Remember, as per the wordings of the form, an individual is required to provide the estimate of total income where tax payable is zero.
It was announced in the Interim Budget 2019 that individuals with taxable income up to Rs 5 lakh in a financial year will be able to avail full tax rebate and thus, will not be required to pay any tax.
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