Form 15G and Form 15H are self-declaration forms used by individuals in India to Income Taxrequest the payer (such as banks, post offices, or companies) not to deduct tax at source (TDS) on their interest income or pension income, respectively. Here’s a breakdown of each form:

Form 15G:

• Who can use it: IndividualsIncome Tax whose total income for the financial year is not expected to exceed the basic exemption limit (currently Rs. 2.5 lakhs for individuals below 60 years old and Rs. 3 lakhs for senior citizens).
• Purpose: To avoid TDS deductionIncome Tax on interest income from sources like bank deposits, fixed deposits, recurring deposits, and government securities.
• Validity: For the entireIncome Tax financial year in which it is submitted.

Form 15G

Form 15H:

• Who can use it: Senior citizens (aged 60 years and above) whose total income forIncome Tax the financial year is not expected to exceed the basic exemption limit (currently Rs. 3 lakhs).
• Purpose: To avoid TDS deduction on pension income received from sources like government, banks, and private companies.
• Validity: For the entireIncome Tax financial year in which it is submitted.

                               EXAMPLE

The format of the declaration form (15G or 15H) depends on whether you are Income Taxdeclaring for interest income (15G) or pension income (15H).

Here are examples for both forms, with the specific state of Tamil Nadu:

Form 15G – Declaration for Interest Income (for resident individuals)

Part I (To be filled by the declarant)

1. Name of Assessee (Declarant): [Your Name]
2. PAN of the Assessee: [Your PAN Number]
3. Status: [Individual/HUF (Hindu Undivided Family)]
4. Previous year (P.Y.): [Financial Year for which the declaration is being made]
5. Residential Status: Resident in India
6. Address:
   • Flat/Door/Block No.: [Your Flat/Door/Block Number]
   • Name of Premises: [Your Apartment/Building Name]
   • Road/Street/Lane: [Your Street Name]
   • Area/Locality: [Your Area/Locality Name]
   • Town/City/District: [Your Town/City/District Name]
   • State: Tamil Nadu
   • PIN: [Your PIN Code]
7. Email: [Your Email Address]
8. Telephone No. (with STD Code) and Mobile No.: [Your Phone Number with STD Code and Mobile Number]

Part II (To be filled by the deductor)

1. Name and Address of the Deductor: [Name and Address of the Bank or Institution deducting TDS]
2. Type of Income: Interest on deposits
3. Account Number: [Your Account Number]

Declaration:

I, [Your Name], do hereby declare that:

• My estimated total income for the financial yearIncome Tax [Financial Year] in which this declaration is made is less than the basic exemption limit.
• I am not liable to pay income tax under the Income-tax Act, 1961 for the financial year [Financial Year].
• The interest income from the account/deposit Income Taxmentioned above is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I understand that if I furnish incorrect information in this declaration, I shall be liable for the consequences under the Income-tax Act, 1961.

Place: [City] Date: [Date]

Signature:

Form 15H – Declaration for Pension Income (for resident individuals)

Part I (To be filled by the declarant)

1. Name of Pensioner: [Your Name]
2. PAN of the Pensioner: [Your PAN Number]
3. Previous year (P.Y.): [Financial Year for which the declaration is being made]
4. Residential Status: Resident in India
5. Address:
   • Flat/Door/Block No.: [Your Flat/Door/Block Number]
   • Name of Premises: [Your Apartment/Building Name]
   • Road/Street/Lane: [Your Street Name]
   • Area/Locality: [Your Area/Locality Name]
   • Town/City/District: [Your Town/City/District Name]
   • State: Tamil Nadu
   • PIN: [Your PIN Code]
6. Email: [Your Email Address]
7. Telephone No. (with STD Code) and Mobile No.: [Your Phone Number with STD Code and Mobile Number]

Part II (To be filled by the deductor)

1. Name and Address of the Deductor: [Name and Address of the Pension Payer]
2. Type of Pension: [Type of Pension you receive, e.g., Superannuation Pension, Family Pension]
3. Pension Account Number: [Your Pension Account Number]

Declaration:

I, [Your Name], do hereby declare that:

• My estimated total income for the financial year [Financial Year] in which this declaration is made is less than the basic exemption limit.
• I am not liable to pay income tax under the Income-tax Act, 1961 for the financial year [Financial Year].
• The pension income from the account/deposit mentioned above is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

                         FAQ QUESTIONS

1. Who can submit Form 15G?

• Individuals below 60 years of age.
• Hindu Undivided Families (HUFs).
• Trusts (not covered under Section 11).

2. Who can submit Form 15H?

• Resident individuals aged 60 years or above.

3. What is the purpose of Form 15G/15H?

• To avoid deduction of Tax Deducted at Source (TDS) on interest income if your total income falls below the taxable limit.

4. What income falls under Form 15G/15HIncome Tax?

• Interest income from fixed deposits, recurring deposits, savings accounts, bonds, etc.

5. What is the taxable limit forIncome Tax Form 15G/15H?

• The current taxable limit for individuals is Rs. 2.5 lakhs in a financial year.

6. What are the conditionsIncome Tax for submitting Form 15G/15H?

• Your total income, including all sources, should not exceed the taxable limit.
• You should not have been liable to pay income tax in any of the previous 6 years.
• You are not holding any assets outside India exceeding Rs. 1 crore.

7. When should I submit Form 15G/15H?

• Ideally, before the interest is credited to your account.
• You can also submit it before the end of the financial year to avoid TDS deduction during the year.

8. Where can I get Form 15G/15H?

• You can also obtain it from your bank or any authorized tax filing agency.

9. Can I submit multiple Form 15G/15H?

• Yes, you can submit separate forms to different payers (banks, post office, etc.) where you have interest-bearing accounts.

10. What are the consequences of giving false information in Form 15G/15H?

• Furnishing false information is a punishable offense under the Income Tax Act and may attract penalties and interest.

11. Do I need to submit Form 15G/15H every year?

• No, you don’t need to submit it every year unless your circumstances change (e.g., your income exceeds the taxable limit).

12. Can I file Form 15G/15H online?

• Yes, you can file it online through the e-filing portal of the Income Tax Department.

13. What happens if I forget to submit Form 15G/15H and TDS is deducted on my interest income?

• You can claim a refund of the deducted TDS by filing your Income Tax Return.

14. Who can I contact for further assistance?

• You can contact the Income Tax Department helpline (1800-180-176) or consult a tax advisor for personalized guidance.

                                     CASE LAWS

• Form 15G: Used by individuals Income Tax(below 60 years) and HUFs to declare their income is below the basic exemption limit, preventing TDS deduction on interest income.
• Form 15H: Used by senior citizensIncome Tax (60 years or above) to declare their total income is below the taxable limit, preventing TDS deduction on interest income.

Validity and Challenges:

• The payer (bank or institution) is responsible for verifying the information provided in these forms. They can reject the form if they have reason to doubt its authenticity.
• Individuals submitting theIncome Tax forms are liable for any penal consequences if they provide false information.
• While no specific case laws address these forms directly, relevant sections of the Income Tax Act like Section 197A Income Tax(declaration for claiming no deduction of tax) and Section 271J (false statement in verification) can be applied in case of discrepancies or false information.
• Additionally, CBDT circulars and clarifications provide guidance on the verification process and circumstances where the payer can refuse to accept the forms.

Key Aspects to Consider:

• Ensure your total income (including all sources) is truly below the exemption limit before submitting these forms.
• Provide accurate and complete information in the forms.
• Maintain necessary documentation to support your income claims.
• If the payer rejects your form due to doubts, seek clarification or consider professional tax advice to address the issue.