Forms 15G and 15H are self-declaration forms that individuals can send to banks or financial institutions to avoid Tax Deducted at Source (TDS) on particular kinds of income. Individuals under the age of 60 utilize Form 15G, whereas Form 15H is designed particularly for elderly adults 60 and over. These documents serve as statements that the individual’s income for the relevant fiscal year is below the taxable limit, suggesting that no tax is due.
Individuals who get income from fixed deposits, recurring deposits, and similar assets frequently file Forms 15G or 15H. These forms are useful since they allow persons to avoid TDS on such income, which is favourable for those who earn less than the taxable limit.
Senior persons can avoid TDS on certain income categories by completing Form 15H to their banks. This document acts as a declaration that the senior citizen’s total earnings for the corresponding fiscal year are less than the taxable limit, indicating that no tax is due.
It is worth mentioning that older citizens receive a larger baseline exemption limit than non-senior persons. For the fiscal year 2022-23, the basic exemption ceiling for elderly persons is Rs 3 lakh, while it is Rs 2.5 lakh for non-seniors. This means that older folks can make a bigger income without having to pay taxes.
Banks deduct TDS on fixed deposits based on the information given by the investor. Typically, if the interest earned on an FD exceeds Rs 40,000, a 10% TDS is deducted at the source. However, if the investor does not disclose their PAN number to the bank, the TDS deduction for FDs earning more than Rs 40,000 is doubled to 20%. Therefore, investors must supply the accurate PAN number while completing these applications.
Investors must also supply phone numbers, email addresses, occupations, full addresses, and information on other sources of income, such as investments, dividends, or withdrawals from National Savings Schemes. The procedure has been streamlined, allowing investors to fill out this paperwork online and avoid the trouble of physically submitting copies.
