What is Form 15G?
Form 15G is a declaration that fixed deposit holders (individuals younger than 60 years of age and HUFs) should fill out to ensure that no TDS (source tax deduction) is withheld annually from their interest income. In compliance with the income tax law, in the case of interest received on the fixed deposit, revolving deposit, etc., banks must deduct tax at source (TDS). In a financial year, that is more than Rs. 10,000. A facility to apply EPF Form 15G for PF has recently been unveiled by EPFO United Portal, which enables EPF members to remove PF online. You should also stop TDS, which is a fantastic plus.
Applicability of form 15G
- If an employee submits the PAN-Card (but the EPF/15H form 15G does not apply) TDS will be deducted 10 percent.
- If an employee fails to send a PAN Card, TDS will be deducted at the rate of 34.608 percent. (Form 15G/15H was also not submitted).
Eligibility for submitting form 15G
- You are a person or an individual (other than a company or a firm).
- For the applicable fiscal year, you must be an Indian citizen.
- Your overall interest revenue for the year goes below the basic exemption requirement.
- For the gross taxable income for the fiscal year, there is no tax liability.
- You should not be more than 60 years of age.
What is Form 15H?
Form 15H is a way of self-reporting that state that the salary is below the taxable level and thus tax-free.
The TDS can be avoided on such profits as the interest and rent by supplying the required individual and agency, such as banks, business bond issuers, postal service, or resident, with Form 15G or 15H.
The validity of 15G and 15H is just one year, and each fiscal year must be submitted.
Applicability of form 15H
Form 15H is built exclusively for a given population in the organization. Type 15H is for people who want to save TDS on such investments’ interest computed. However, the following conditions are fulfilled by only a certain part of society:
If you meet the following requirements, you are qualified for Form 15H :
- You're an individual. For companies, Form 15H is not expected.
- You're a resident of India. Non-resident Indians are not eligible for this form (NRIs).
- You are a senior citizen, which means you are at least 60 years old or would be 60 during the fiscal year in which the form is filed.
- Your tax liability on net income is zero.
- The total amount of interest earned by various means in a financial year shall be below a certain limit as provided for in the income tax sheet.
