What is 15G and 15H in income tax?

What is 15G and 15H in income tax?

What is the difference between Form 15G and Form 15H? Both are self-declaration forms that you have to submit to the bank once you open a fixed deposit. While Form 15G is for those who are below 60 years and come under Hindu Undivided Families (HUF), Form 15H is for everyone who is 60 years and above.

Who can apply for 15G and 15H?

Who can Submit Forms 15G and 15H? Only resident individual taxpayers or HUF (Hindu Undivided Family) are allowed to submit Form 15G. Resident Individuals with an age of 60 years or more i.e. Senior Citizens are allowed to submit Form 15H. Companies, firms, the non-resident persons are not allowed to use these forms.

What is the income limit for Form 15H?

Such Forms may be submitted only by those whose income is below the exemption limit as per the Income Tax Act. For those who are less than 60 years, income up to Rs 2.5 lakh is exempted, while for those over age 60 but under age 80, income up to Rs 3 lakh is exempted from tax.

Is 15G required for FD?

Does Form 15G need to be submitted mandatorily for FDs? No, you need not submit Form 15G mandatorily for FDs. However, you are earning interest in excess of Rs. 40,000 in a financial year, it will be helpful in saving TDS.

Why 15G and 15H is required?

It is important to submit Form 15G/Form 15H to the financial institution (usually banks) to avoid the deduction of tax. Banks usually deduct TDS from the interest income on FDs if it crosses the threshold limit.

What is difference between 15G and 15H?

At the age of 50, your total interest income exceeds the maximum tax-exempt income limit of Rs 2.5 lakhs for the age. This criteria alone disqualifies you from using Form 15G. ii. At the age of 62, even though the interest income exceeds Rs 2.5 lakhs you are eligible for using Form 15H.

What happens if I don’t submit form 15G?

A false or wrong declaration in Form 15G attracts penalty under Section 277 of the Income Tax Act. “Prosecution includes imprisonment ranging from three months to two years, and a fine.

What is Form 15H for senior citizen?

Form 15H is a self-declaration that may be submitted by senior citizen aged 60 years or above to reduce TDS (tax deducted at source) burden on interest earned from fixed deposits (FD) and recurring deposits (RD) investments.

How can senior citizens avoid 10% TDS on fixed deposit?

This year onwards, senior citizens aged 75 years and above looking to get exemption from filing income tax should fill and submit form 12BBA with their respective banks. Senior citizens with income only from pension and interest from fixed deposits are eligible for this exemption.