Tax Deducted at Source (TDS) is applicable on various payments such as interest income, dividends, rent, insurance commissions, and certain withdrawals. However, the Income-tax Act provides relief to eligible taxpayers through self-declarations in Form 15G and Form 15H, allowing them to receive specified incomes without TDS deduction when their tax liability is nil.
These forms help taxpayers avoid unnecessary tax deductions and the subsequent process of claiming refunds while filing their income tax returns.
Form 15G and Form 15H are self-declarations submitted to the payer requesting non-deduction of tax at source on specified incomes.
By submitting the applicable form along with a valid PAN, eligible taxpayers can receive specified income without TDS deduction.
A resident individual or eligible non-corporate taxpayer can submit Form 15G only when:
If the taxpayer’s estimated income changes during the year and no longer satisfies these conditions, a fresh assessment of eligibility should be made.
Form 15H can be filed by a resident senior citizen who:
Unlike Form 15G, senior citizens are not restricted by the basic exemption limit criterion, provided their final tax liability remains nil.
Depending on the applicable provisions, declarations can be furnished for the following types of income:
For Resident Non-Senior Citizens
For Eligible Non-Corporate Taxpayers
Declarations may be submitted for income covered under:
For Resident Senior Citizens
Senior citizens may submit Form 15H for income covered under:
The declaration can be furnished to the payer:
The declaration must contain a valid PAN. Once the payer receives the properly completed form, TDS may not be deducted from the eligible payment.
The responsibility does not end with merely collecting the declaration. The payer must comply with several reporting requirements.
Allotment of Unique Identification Number (UIN)
Every Form 15G and Form 15H received must be assigned a Unique Identification Number (UIN).
The UIN consists of:
Sequence Number
Examples:
The payer must digitize paper declarations and upload both electronic and digitized forms on the Income Tax e-Filing portal on a quarterly basis.
Due Dates for Uploading
| Quarter | Due Date |
|---|---|
| Q1 | Within 15 days from the end of the quarter |
| Q2 | Within 15 days from the end of the quarter |
| Q3 | Within 15 days from the end of the quarter |
| Q4 | Within 30 days from the end of the quarter |
Even when tax is not deducted because Form 15G or Form 15H has been received, the payer must:
Proper reconciliation of UINs is the responsibility of the payer.
Income-tax authorities may call for these declarations during assessment or verification proceedings.
Therefore, the payer must preserve Form 15G and Form 15H records for:
Seven years from the end of the financial year in which the declaration was received.
Failure to maintain these records may result in compliance issues during departmental verification.
Submitting Form 15G or Form 15H offers several advantages:
Form 15G and Form 15H are valuable compliance tools that help eligible taxpayers receive specified incomes without TDS deduction when their overall tax liability is nil. While taxpayers must ensure they satisfy the prescribed eligibility conditions, payers must adhere to UIN allocation, quarterly reporting, portal uploading, and record-retention requirements. Proper compliance by both parties ensures smooth administration of TDS provisions and minimizes refund-related hardships.
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