Forms 15G and 15H

When the interest income of an individual is more than 10,000 annually, the banks need to deduct TDS from that particular account. When a salaried  individual’s income is below the taxable limit, to avoid tax deductions from their income, they need to submit form 15G or 15H to the bank, requesting them not to deduct TDS from the amount of interest that is earned by the person. 

Form 15H

Form 15H ensures exemption of TDS deduction from a person’s bank account. It is only applicable for an individual who is 60 years or older. It is a declaration under section 197A of Income tax act, 1971.

Eligibility criteria for submission of form 15H

• The individual must have attained 60 years of age at the time of submission.
• The individual should not have paid any taxes in the previous year.
• The form needs to be submitted to all the branches where the individual is drawing interest from.
• It is preferable that the individual submits the form before drawing the first interest income since that could avoid any TDS cuts from the beginning.
• If the individual has accounts with different banks, then even if the interest income earned from one of the banks exceeds 10000 annually, he/she needs to submit form 15H.
•  If the individual is earning more than 5000 as an interest income from sources other than deposit like interest on loans, advances, debentures, bonds etc 

Form 15G 

While form 15H is supposed to be submitted by senior citizens (more than 60 years of age), 15G is applicable for all the other individuals who earn an income from sources like deposits, loans, advances, etc.

Eligibility criteria for submitting form 15G

• The individual must be less than 60 years of age
• Form must be submitted before the receipt of first interest income on the deposit
• Total exemption must be less than the minimum  income during that year’
• Individual must be a resident Indian