Income tax Exemption: How to Submit Form 15H and Form 15G

In 2017-18, around 6.85 crore Indians filed Income Taxes. Many of them failed to utilise the useful tax deductions and exemptions offered by the government. Investors, too, often lack the knowledge to realise that they are eligible for such tax discounts as well.

Form 15G/15H download and submission for non-senior citizen and senior citizen investors respectively are necessary to avail tax rebates on interest earnings.

What is Form 15G and Form 15H?

Form 15G is a declaration that taxpayers submit to the Income Tax Department while filing their yearly taxes. Such a declaration showcases that an individual’s total accumulated annual interest earnings do not exceed the tax-free slab rate. Form 15H is a similar declaration, which applies to senior citizen investors alone.

Failure to submit these forms result in a 10% tax on your yearly interest income, even if the returns are within the tax-free range.

When is Form 15G/15H applicable?

If you invest in a fixed deposit or any other market instrument, you need to know when to pay taxes on FD interest.

Similarly, you should understand the applicable tax deductions –

1. Non-senior citizen individuals: Investors aged below 60 years earning interest up to Rs.40,000 per year from their investments are eligible for tax deductions on interest income. To avail these exemptions, such an individual needs to avail Form 15G and submit the same while filing their yearly taxes.
2. Senior citizens: Investors aged over 60 years can also claim income tax deductions if they invest in instruments. To be eligible for such deductions, their total accumulated interest earnings must not exceed Rs.50,000 per year.

Before looking for the best FD interest rates, start looking into Form 15G/15H application process. Doing so will save you from hassle in the future.

How to initiate Form 15G H download?

Now that you know whether you are eligible for tax exemptions on your fixed deposit interest earnings, the next step involves downloading the respective form.

Both the forms are available on the Income Tax Department website. You can also undertake Form 15G H download from the official website of your financial institution.

Submitting Form 15G and Form 15H

You can submit these declaration forms online or offline. Visit your financial institution’s branch to submit these forms offline.

For the online application, follow the steps mentioned below –

1. Log into your internet banking platform.
2. Navigate to the tax section.
3. Select Form 15G H download.
4. Fill necessary details.
5. Click on the submit option.
6. Download an acknowledgement slip.
7. Ensure you save the service request for the submission.
8. Filling up Form 15G/15H

Ensure you follow the steps mentioned below to enjoy a hassle-free form filling procedure –

Step 1: Enter your name as per the income tax records.

Step 2: Provide your PAN details.

Step 3: Choose whether you are an individual taxpayer or a member of Hindu Undivided Family or HUF.

Step 4: Mention the year for which you are filing your taxes. This should be the fiscal year.

Step 5: Enter your residential status on the form. Keep in mind that only Indians are eligible to file Form 15G/15H.

Step 6: Enter your address details, including apartment/house/building number.

Step 7: If you live in an apartment or society, mentioning the name of your residence is also crucial.

Step 8: Enter your lane or street name.

Step 9: Mention area/locality, city/town/village, state and PIN code.

Step 10: Provide your email ID.

Step 11: Enter your phone number.

Step 12: Select ‘Yes’ in the next section if you have filed taxes under Income Tax Act, 1961 in the past 6 years. If you choose yes, you must also provide the last year when you filed income taxes.

Step 13: Fill up income details on which you are filing tax deductions.

Step 14: Submit after rechecking the details.

Before starting investments, an individual must assess how the interest earnings on such instruments are taxed. Understanding the same will allow the investor to form realistic expectation regarding returns from his/her investments.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at HighlightStory