Why You NEED to Submit Form 15G and Form 15H for Income Taxes

Using 15G and 15H forms can save you tons of money on your income tax

Introduction:

Dealing with income tax returns can feel overwhelming. But, knowing how to handle Form 15G and Form 15H is key to saving more tax. Tax Deducted at Source (TDS) automatically takes tax from salaries, fixed deposits, dividends, and rent.

As an Indian citizen, you can reduce these TDS deductions. Forms Form 15G and Form 15H help you avoid extra TDS and keep more of your money.

Key Takeaways on Form 15G and Form 15H for Income Taxes

• TDS is a tax mechanism that automatically deducts tax from your income sources
• Submitting Form 15G or Form 15H can help you avoid unnecessary TDS deductions
• Maximizing tax savings is crucial for your financial well-being
• Understanding the eligibility criteria and submission process for these forms is essential
• Staying compliant with tax regulations can help you enjoy the benefits of tax exemptions and deductions

Wondering how to get your delayed income tax refund in 2024? Check the Status of the Tax Refund

Understanding Form 15G and Form 15H

Managing your income taxes can be easier with the right forms. Forms 15G and 15H are the most used keys for your tax planning. Let’s explore what these forms are and why they matter.

What is Form 15G?

Form 15G is for people under 60 and HUFs to ask banks not to take TDS on interest from savings accounts and rent. You must earn less than the basic exemption limit and have no tax to pay that year.

What is Form 15H?

Form 15H is for older / senior citizens (60 or above) to ask bankers not to take TDS on things like Savings Account interest, Fixed Deposit Interest, and Rent. You must earn less than the maximum exemption limit to qualify.

You can use these forms to get tax breaks and lower your tax bill. Knowing about Form 15G and Form 15H is important for better tax planning.

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Eligibility or Who can use Form 15G and Form 15H

Forms 15G and 15H are key for tax exemption and lowering taxable income. It’s vital to know who can use them. This is important for both senior citizens and those under 60. Let’s look at the details:

Form 15G Eligibility

To get Form 15G, you must:

• Be under 60 years old or a Hindu Undivided Family (HUF).
• Have an annual income less than the basic exemption limit.
• Have no tax to pay for the year.

Form 15H Eligibility

For Form 15H, you need:

1. Must be a senior citizen aged 60 or more.
2. Your income must be under the maximum exemption limit.

Knowing these rules helps you see which form fits your situation. This way, you can get the tax breaks offered by the Indian Income Tax Department.

Form	Eligibility Criteria
Form 15G	Resident of India and senior citizen aged 60 years or above Annual taxable income below the maximum exemption limit
Form 15H	Resident of India and senior citizen aged 60 years or above Annual taxable income below maximum exemption limit

Understanding Form 15G and Form 15H eligibility lets you claim the right tax breaks. This way, you can minimize your taxable income. It’s especially useful for senior citizens and those under 60.

Best time to Submit Form 15G and Form 15H

Submitting Form 15G and Form 15H is key to managing your income tax duties. You should send these forms in April at the start of the financial year.  This action prevents any TDS deduction on your income from things like interest, rent, or other passive income sources for the year.

These forms are used or applicable only for one financial year. So, you must send them every year. If not submitted before you can submit any time. But remember, the bankers can deduct TDS before you submit the 15G or 15H Forms. But, you might have to claim a refund by filing your income tax return.

To summarise the key points on when to submit Form 15G and Form 15H:

• Submit the forms at the start of the financial year, likely 1^st  April.
• The forms are valid for one financial year, so you need to submit them every year.
• If you forget to submit the forms, you can still do so later, but you may have to claim a refund of excess TDS deduction through your tax filing.

Keeping up with submitting Form 15G and Form 15H can prevent extra TDS deductions. It also makes the tax filing process smoother.

Why You NEED to Submit Form 15G and Form 15H for Income Taxes

It’s vital to submit Form 15G and Form 15H for your income taxes. These forms help you avoid extra TDS deductions on things like interest and rental income. This way, you can save more money and keep your cash flow healthy.

Also, if you’re overcharged in TDS, you can get a tax refund by filing your taxes. Lastly, these forms make sure you follow tax rules and avoid fines or legal trouble, keeping you in tax compliance.

• To avoid unnecessary TDS deductions on eligible income sources
• Maximize your tax savings and improve cash flow
• Ask or Claim tax refunds if TDS is deducted wrongly
• Ensure tax compliance and avoid penalties

It is a good way to enhance your income tax situation by submitting Form 15G and 15H to Banker and asking for the tax exemptions you’re eligible for.”

Understanding and submitting these forms can greatly improve your tax savings. Don’t miss the chance to boost your financial benefits.

Other Scenarios for Submitting Form 15G and Form 15H

As an income taxpayer, there are a few extra situations where submitting Form 15G or Form 15H is useful. Let’s look into these situations.

TDS on EPF Withdrawals

If you take out your Employees’ Provident Fund (EPF) before working for five years, you might face Tax Deducted at Source (TDS). To skip this TDS, you can give Form 15G or Form 15H to the EPF Organisation (EPFO). This is possible if your total income for the year is under the tax-free limit.

TDS on Corporate Bond Interest Payments

When your interest from corporate bonds goes over 2,50,000 in a year, TDS kicks in. In that case, you submit Form15G or Form 15H and ask to the bond issuer for not to deduct TDS. It is possible when your total income is not exit the tax-free limit.

Using these forms helps you control your investment income better. So, you can plan your tax savings easily throughout the year.

How to Fill Form 15G and Form 15H yearly

It’s vital to fill out tax forms like Form 15G and Form 15H correctly for tax compliance. These forms have two parts that need careful attention. Let’s explore how to fill them out.

Part I: Taxpayer Details

The first part is for the taxpayer. You must provide certain details here:

• Your name
• Your address
• Your Permanent Account Number (PAN)
• Your assumed income for the running financial year
• A declaration stating that you are eligible for the form

Part II: Deductor Details

The second part is for the deductor, like a bank or landlord. They need to give their details, including:

1. Name of the deductor
2. Address of the deductor
3. Deductors must hold a Tax collection account number (TAN)

You can get Form 15G and Form 15H from your bank or download them from the Income Tax Department’s website. Make sure to fill them out correctly and send them to all the right people to keep up with tax compliance.

Learning how to fill out Form 15G and Form 15H helps you manage your tax forms well. First, you ensure that your tax compliance meets all the needs.

Conclusion on Form 15G and Form 15H for Income Taxes

Using Form 15G and Form 15H is key to managing your income taxes well and avoiding too much TDS. You need to know who can use these forms and when to submit them. This way, you can save more on taxes and follow the tax rules.

Fill in the forms properly, and send or hand over the form to the concerned person. This action will cut down your taxes and make managing your money easier. In this way, It gives you more control over that how much tax you pay.

Forms 15G and 15H can help you save on taxes, like on EPF withdrawals or corporate bond interest. Stay updated, plan well, and use these forms to improve your financial health.

FAQ on Form 15G and Form 15H for Income Taxes

What is Form 15G?

Form 15G is a form for people under 60 or Hindu Undivided Families. They can use it to ask banks not to take TDS on interest from savings accounts and rent. You must earn less than the basic exemption limit and have no tax to pay.

What is Form 15H?

Form 15H is for senior citizens over 60. They can use it to ask banks not to take TDS on things like savings account interest and rent. You must earn less than the maximum exemption limit.

What are the eligibility criteria for Form 15G?

To use Form 15G, you must be under 60 or a Hindu Undivided Family. Your income must be under the basic exemption limit. If it is then you can’t worry about taxation for the year.

What are the eligibility criteria for Form 15H?

For Form 15H, you must be a senior citizen over 60. You must ensure that your income does not exceed the maximum exemption limit.

When should I submit Form 15G and Form 15H?

Fill out the Form and submit it to bankers in April, at the beginning of the financial year. This stops TDS on your income like savings account interest and rent. Remember, these forms are only for one year, so you need to fill them out every year.

Why should I submit Form 15G and Form 15H?

These forms help avoid TDS on your income. It saves you money and keeps your cash flowing smoothly. If TDS is taken wrongly, you can get a refund by filing your tax return. It also makes sure you follow the tax rules.

Can I submit Form 15G or Form 15H for TDS on EPF withdrawals?

Yes, if you take out your EPF before five years, you might have to pay TDS. You can use Form 15G or Form 15H to avoid tax / TDS deduction if your income is below the exemption limit.

Can I submit Form 15G or Form 15H for TDS on corporate bond interest?

Yes, if you’re earning over Rs 2,50,000 from corporate bonds, TDS applies. But, you can ask the bond issuer not to deduct TDS with Form 15G or Form 15H, if your income is below the exemption limit.

How do I fill out Form 15G and Form 15H easily?

These forms have two parts. Part I is for you, asking for your details like name and income. Part II is for the bank or landlord. You can get the forms at bank branches or from the Income Tax Department’s website. Make sure to fill them out right and give them to the right people to follow the tax rules.

Source Links

• https://cleartax.in/s/form-15g-and-15h-to-save-tds-on-interest-income
• https://www.maxlifeinsurance.com/blog/tax-savings/what-are-form-15g-15h
• https://www.canarahsbclife.com/tax-university/articles/form-15g-and-15h-to-save-tds-on-interest-income