According to the Economic Times, over 6.86 IT returns were filled in the fiscal year 2017-2018. The government is aiming to increase the number further in the upcoming few years; tax violations have seen an all-time low thanks to revised policies and various tax exemptions. Integration of the internet has also assisted the process significantly, streamlining the entire system, and helping a taxpayer save time.
For instance, you can opt for form 15G and h download procedure. By submitting these forms to the concerned financial institution, you can avoid tax deduction at your income source.
What is Form 15G and H?
Form 15G and H are self-declaration forms to state that the income of an individual is below the taxable limit, allowing that individual to be exempted from paying income tax. You should know about TDS on fixed deposit earnings, rent, and interest from other sources by submitting these forms.
Who can submit form 15G?
You will be eligible to claim tax exemption on your interest income by submitting Form 15G if you fulfill the following conditions –
- If you are an individual, trust, HUF, or another assesse. Companies and firms are not eligible to apply.
- If you are an Indian resident.
- If your age is less than 60 years.
- If you fall under a non-taxable slab for your total income.
- The basic exemption limit for the fiscal year 2019-20 is Rs. 2.5 Lakh. If your total interest income is less than the amount, then you can submit this form.
Who can submit Form 15H?
You are eligible to avail tax exemption on the interest amount you earn in a particular year by submitting this form if you fulfill the conditions mentioned below –
- You have to be a residing Indian citizen. Also, you have to apply as an individual. Organizations are not eligible to submit this form.
- You can submit this form if you are a senior citizen or if you are going to attain the age of 60 during the year of submitting this form.
Purposes for submitting Form 15G and H
Along with claiming tax exemption on interest amount earned from various financial institutions, you can also claim benefits for the interest earned from the tax-saving investment options under Section 80C.
Here are a few instances where you can submit these forms.
- Rental income
If the amount of payment earned from rent exceeds Rs. 8 Lakh in a financial year, then it is subjected to TDS deduction. However, if the amount is less than the basic exemption limit, then you can claim non-deduction by submitting Form 15G or Form 15H
- EPF withdrawal
If you withdraw the money from a provident fund to utilize your EPF savings before five years of continuous service, the amount will be entitled to tax deducted at source. Also, in case of EPF service for less than five years, and if you plan to withdraw more than Rs. 50,000 from your account, you can claim exemption by submitting Form 15G and H.
- Income from corporate bonds
If you earn more than Rs. 5,000 from the corporate bonds you hold, it will be liable for TDS. However, you can claim an exemption on the amount by submitting form 15G and H.
- Fixed deposits
If the amount of interest earned from your fixed deposit exceeds Rs. 40,000 in a financial year, then it can also be considered for TDS deduction. You can exempt that amount by submitting Form 15G and H. However; there are several investment options available that offer tax exemptions, like fixed deposits from NBFCs like Bajaj Finance. You can also ensure tax exemptions by submitting Form 15G and H within time.
Form 15G and H download procedure
You can download Form 15G and H from the websites of any leading financial institution in India. The formats vary according to the institutions, and you may also get the provision to fill up the forms online. A basic setup of these forms can be obtained from the official website of the Income Tax department.
Form 15G and 15H can be beneficial for individuals who want to avail tax exemptions against their investments. It is to be noted that the forms are valid for one year, hence submit every year to claim maximum benefits.
Summary:
Form 15 G and H are two crucial documents that you can submit to reduce the tax deducted at source. You are required to submit these forms in order to pay TDS from any additional income source that you may have.
If you are an Indian resident below the age of 60 and having an annual income within the basic tax exemption limit, then you are eligible to submit Form 15G. On the other hand, Form 15H is meant for senior citizens. The exemption limit is set at Rs 2.5 Lakh for the fiscal year 2019-20.
These forms are submitted to avail tax exemptions on various income sources, including EPF withdrawal, fixed deposits, corporate bonds, rent, etc. These are only available for individual taxpayers; organizations are not allowed to submit the forms. Also, only residing Indian citizens are eligible to enjoy the benefits.
You are required to carry out Form 15G and H download from the website of any reputed lender. It is also available official website of the Income Tax department. The format of these forms may vary depending on the financial institution you choose.
