Form 15H is for senior citizens, those who are 60 years or older; while Form 15G is for everybody else.
What do you do when your bank deducts TDS on your interest income and your overall income falls under the minimum exemption limit. NBFC or Banks are required to deduct TDS when interest income is more than Rs.5000/- or Rs. 10,000/- respectively in a year. But if your total income is below the taxable limit, you can submit Form 15G and Form 15H to the bank requesting them not to deduct any TDS on your interest.
TDS or Tax Deducted at Source, is one of the modes of collection of taxes, by which a certain percentage is deducted at the time of payments of various kind such as salary, commission, rent, interest on dividends etc and deducted amount is remitted to the Government account. This withheld amount can be adjusted against tax due.
New Form 15G & Form 15H
•Under the simplified procedure, a payee / an individual can submit the self-declaration either in paper form or electronically.
•The deductor (Example – Bank) will not deduct tax and will allot a Unique Identification Number (UIN) to all self-declarations in accordance with a well laid down procedure.
•The particulars of self-declarations will have to be furnished by the deductor along with UIN in the quarterly TDS statements.
•The requirement of submitting physical copy of Form 15G and 15H by the deductor to the income-tax authorities has been dispensed with.
•The deductor will, however be required to retain Form No.15G and 15H for seven years.
•The revised procedure shall be effective from the 1st October, 2015.