Form 15G and Form 15H are self-declaration forms used by individual taxpayers to request tax deductors, such as banks and financial institutions, not to deduct TDS if their estimated tax liability for the relevant financial year is Nil.
Under Section 194A of the Income Tax Act, 1961, banks must deduct TDS on interest income exceeding Rs. 40,000 (or Rs. 50,000 for senior citizens) in a financial year. However, if the taxpayer’s estimated tax liability is Nil, they can submit Form 15G or 15H to the bank to prevent TDS deduction from their interest income.
These forms can usually be submitted electronically through the banks’ or financial institutions’ online portals, or they can be physically submitted at the relevant bank branch.
Additionally, it’s important to note that these forms are valid for one financial year only and need to be submitted separately for each financial year.
According to Section 197A(1A) of the IT Act in conjunction with Rule 29C of the IT Rules, 1962, residents who are under 60 years old, HUFs, trusts, or any other assessee whose estimated tax due for the applicable fiscal year is zero may file Form 15G. Any business, firm, or non-resident, however, would not be qualified to file Form 15G.
Senior citizens (those 60 years of age or over) whose estimated tax liability for the relevant financial year is Nil may file Form 15H in compliance with Section 197A(1C) of the IT Act read with Rule 29C of the IT Rules, 1962.
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