Submit Form 15G and 15H for non-deduction of TDS – Individual Taxation

We note in various cases, that taxes are being deducted even when respective tax payer’s income falls below the taxable limit. The Provisions of section 197A addresses this issue. The provision states that, when a declaration is submitted under section 197A, in form 15G, and 15H by the recipient to the payer, than no tax is deductible in a few cases.



Form 15H: Declaration -to be made by senior citizen( Age of sixty-five years or more (Sixty Years from A.Y. 2012-13).

Form 15H can be submitted only by Individual above the age of 65 years. (Age limit reduced to 60 Years from A.Y. 2012-13). Further estimated tax for the previous assessment year should be nil, that is income is not coming under the taxable limit.

The form should be submitted to all the deductor to whom you advanced a loan. For example you have deposit in three SBI bank branches 100000 each. You must submit the Form 15H to each branch. Also, submit this form before the first payment of interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of year.

You need to submit form 15H to banks if interest from one branch of a bank exceeds 10000/- in a year. Also, need to submit for 15H, if interest on loan, advance, debentures, bonds or say interest income other then interest on bank exceeds 5000.

Form 15G: Declaration – to be made by an individual or a person (not being a company or a firm) . Form 15G can be submitted by Individual below the age of 65 years (Age limit reduced to 60 Years from A.Y. 2012-13)) and Hindu Undivided Family, All the points as stated above in case of senior citizen are also applicable to the Form 15G .

Another point also, is to be kept in mind that, 15G CAN NOT BE submitted by person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax.



Other points to be kept in mind: 

• Nominees of investors of Senior Citizen Saving Scheme can also produce Form No. 15G at the time of payment after the death of depositor;

• The payer of the income is required to deliver to the Commissioner of Income-tax in the prescribed form, form 15G, or 15H. In the case of Senior Citizens saving Scheme, 2004 (SCSS), investors can submit the aforesaid copy of the aforesaid declaration on or before seventh day of month, next following the month in which the declaration is furnished to him [sec. 194A and rule 29C].

• It is the duty of the Assessing Officer to give an opportunity to rectify the defects in the declarations in Form No. 15H and imposition of tax Liability without giving an opportunity to petitioner to rectify the defects in the declaration, in spite of the petitioner asking for an opportunity to rectify the defects.

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