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New 15G – 15H Forms To Avoid TDS:


To avoid Tax deducted at source (TDS) on Fixed deposits on banks,company fixed deposits,postal deposits,Senior citizen Saving Scheme one need to submit 15G/15H form to avoid TDS so that tax will not be deducted at source:

About TDS & Provisions:

  • Depositor whose tax liability is probably nil can submit the 15G/15H form.
  • Depositor having interest income above basic income tax slab will not be able to submit the 15G/15H form.Suppose if any depositor have interest income of 4 lakh which is above basic slab can not submit 15G/15H form.
  • Submit 15H form if depositors age  is above 60 years.
  • One can submit form 15G/15H if interest income from particular branch of bank  is above Rs.10,000/- and for company deposits its above Rs.5000/-

New 15G/15H forms:

Income tax department have come up with new 15G/15H forms w.e.f feb 2013 & old forms won’t work any more.

What additional Information is in new 15G/15H form:

Though there is no major fundamental difference between 15G/15H form,some new information will be necessary in new forms.

Download 15G / 15H form:

Form_15G (Source ICICI website)

Form_15H

 

Here are the fields which need to be entered in 15G form:

  • Name of assessee (Declarant):Enter your name.
  • PAN of Assessee : Enter PAN number.
  • Status: Individual if declaration is being made in capacity of individual.
  • P.Y. for which declaration is being made : Enter Financial Year.
  • Residential Status:Enter residential status under section 6 of I.T. act like : Residence of India, HUF , Company.
  • Flat /Door / Block No:
  • Name of premises
  • Road / Street / Lane
  • Area / Locality
  • Town / City / District
  • State:
  • PIN
  • Email:
  • Telephone / Mobile no:
  • Whether assessed to tax under I.T act 1961:Mention “Yes” if assessed to tax under provisions of income tax , 1961 for any of the assessment year out of 6 assessment years preceding the year in which declaration is being filled.If yes then enter the latest assessment year.
  • Estimated income for which declaration is made:Enter estimated amount of income for which this declaration is made.E.g if you are submitting form for deposit interest income then you can get  interest income certificate from your bank.
  • Estimated total income of P.Y.for which the declaration is filled including the amount of income for which declaration is made:Enter total income estimate for the financial year.
  • Details of Form no 15G other than this form filled in the financial year:Enter number of 15g forms submitted other than this form.Also enter aggregate amount of income for which such forms are submitted.e.g if you have submitted 15G forms at two other banks also then enter number of 15G forms submitted as 02 and enter interest income from all three banks.
  • Details of income for which the declaration is made:Mention ac/ no of term deposit, recurring deposit,NSC,Life insurance policy number, Employee code etc.
  • Nature of income : e.g Interest on Fixed deposit.
  • Section under which tax is deductible:e.g if interest income is from debentures, NCDs other securities then enter section : 193.
  • Amount of income : Enter income amount received from the specific interest.If interest income is from deposits then enter estimated interest income to be received in financial year.
  • signature: Before signing the form, Please confirm that details provided are true to best of your knowledge as providing false information is punishable offence.

 

 

Here are some Frequently Asked Questions related to TDS and 15G form:

Q: Interest income limit at banks for tax deduction at source is 10,000.Is this limit is branch wise or bank wise:

A : This limit is bank wise…aggregating interest income from all branches of said bank.

 

Q.what is interest income limit for NBFCs:

A: For deposits / debentures offered by NBFCs, interest income limit is Rs. 5000/-.

 

Q.My age is 65 yrs.My annual Interest income from XYZ bank is Rs. 500000(5 lakh).I have submitted required form to avoid TDS. But still bank deducted tax at source:

A: Bank is right in deducting tax as interest income is higher than basic tax slab.As your interest income is higher than basic exemption limit… form submitted to avoid TDS becomes invalid.If you think excess tax is deducted then you need to file the returns and claim tax refund.

 

Q.My annual salary is Rs. 8 lakh and interest income is about 40,000.Can I provide 15G form to avoid tax deduction at source?

A: As your total income is above basic slab , it is suggested not to submit 15G form.Rather file the returns and take refund if excess tax is deducted.

 

Q.My bank have deducted TDS but its not reflecting is in 24AS account:

A: Then you need to contact bank urgently. TDS need to be reflected under 24AS account.Other wise you can not claim the same.Either bank have not deposited tax deducted or deposited with wrong PAN number.

 

You may not need the info like AO code, ward, but till If you want to know your assessing office details :

How to find AO//Ward/Circle:

To find AO code , one can visit the website: www.incometaxindia.gov.in –>PAN —>Know Your AO–>Code.

Saving-Ideas.com - How To Find AO Code

AO Code For purpose of 15G-15H form

OR:

Find your jurisdiction details at this link:Enter your pan number to view jurisdictional assessing office.

https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdiction.html


Category: Fixed Income

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6 Responses

  1. Saavi says:

    My father has recurring deposit since last 2.5 yrs.Please let me know how we can calculate interest earned for the last financial year.
    He is in 10% tax bracket & 10% TDS have already deducted from interest added.

    Thank you,

    Saavi.

    • admin says:

      Saavi,
      One can pay tax on maturity as on whole interest income or
      You can think to take following steps,if want to pay off tax yearly:
      – Demand interest paid certificate from bank in the financial year.
      – Exclude interest paid on saving account up to Rs.10,000/-…as its not taxable.(one can get total interest on saving account from entries or demand it separately from bank.)
      – Resulting interest is the total taxable interest & show it as income from other sources.
      – Calculate your total tax & pay remaining tax after subtracting tax deducted at source.

      Hope its clear for you.

      Thank you.

    • Saavi says:

      Just to update,preceeding year his tax liability was zero.

  2. Prakash says:

    Dear Sir,
    My name is Prakash & I have deposits with HDFC. I will receive interest around 8000/- in this financial year.You have mentioned that TDS applicable for company deposits if interest exceeds 5000/- can you please clarify do I need to provide 15G form to avoid tds?

    • admin says:

      Dear Prakash,
      Thanks for comment & please don’t call me sir..I am similar to all other.

      HDFC (not HDFC Bank)is NBFC & so if interest exceeds Rs 5000/- then tax will be deducted at source.
      So if your income is below Rs.2 lakh you need to provide 15G form otherwise let it be deducted at source.

      Thank you.

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