Banks have to deduct TDS on interest income if such interest is more than INR 40,000 in a year. To calculate this limit, the bank adds all the deposits held in all its branches by the taxpayer. However, if the total income of the taxpayer does not exceed the taxable limit, the taxpayer can submit Form 15G or 15H and request the bank not to deduct any TDS. Like bank interest, TDS on few other incomes can be avoided. The list is available below.
Did you Know?As per budget 2019, for bank and post office deposits the threshold on income, to deduct TDS has been raised to INR 40,000 from INR 10,000. However, for NBFCs, the threshold continues to be INR 5000.
In this article, you will find:
15g form is a form that can be submitted by any individual who is below 60 years of age, to avoid deduction of TDS on income. However, these below-mentioned conditions need to be fulfilled while submitting the form 15g for pf:
To prevent the deduction of TDS on income, 15h form can be submitted by any individual whose age is 60 years or more. However, the following conditions should be satisfied:
|Type of Taxpayer||Details||Form Type||Basic Exemption Limit|
|Non-Senior Citizen||Indian Resident below 60 years of age||Form 15G||INR 2,50,000|
|Senior Citizen||Indian Resident who is above 60 years of age, but less than 80 years of age||Form 15H||INR 5,00,000|
|Super Senior Citizen||Indian Resident who is above 80 years of age||Form 15H||INR 5,00,000|
|Others||Trust, Association, Club, HUF and Society||Form 15G||INR 2,50,000|
If the taxpayer satisfies the conditions mentioned above, he/she can submit the Form 15G/15H to the deductor for these incomes after form 15g download which is 15g form epfo and also know how to fill form 15g.
These forms can be submitted offline in ‘Paper Form’ or electronically after 15g form download. The taxpayer needs to fill in the details in Form 15G (15g form pf) or Form 15H as applicable. Post this, a copy of the PAN card has to be attached along with the declaration form. This form has to be submitted to the tax deductor who will complete the formalities and submit it to the department. False declaration in these forms can lead to a fine and/or imprisonment up to 2 years under Section 277 of the Income Tax Act, 1961. However, if the evaded taxable amount exceeds INR 25 Lakhs, the term can be extended up to 7 years.
Form 15G and 15H must be submitted to the deductor at the beginning of the financial year. These forms are only valid for one year.
ImportantThe government has extended the validity of the Form 15G, and Form 15H submitted in FY 2019-20 (which was expiring on 31 March 2020) up to 30 June 2020. That means, for the period between 1 April 2020 and 30 June 2020, the Form 15G and 15H submitted for FY 2019-20 will be considered as a valid proof for non-deduction of TDS. For the FY 2020-21 taxpayers could submit the Form 15G and Form 15H in the first week of July 2020.
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