Difference Between Form 15G and Form 15H

Introduction

Managing your finances and taxes wisely often involves navigating a complex landscape of income tax forms. Among these forms, Form 15G and Form 15H stand out as valuable tools. Especially for individuals seeking to save on Tax Deducted at Source (TDS) on their interest income. In this article, we will delve deeper into the differences between Form 15G and Form 15H. We will explore the eligibility criteria, and difference between Form 15G and Form 15H, examine their uses and importance for TDS returns and benefits, and provide insights into when and how to submit them. Let’s embark on this journey to demystify these essential tax-saving documents.

Form 15 G & Form 15H

In the realm of income tax management, Form 15G and Form 15H serve as significant shields. They protect against unnecessary TDS deductions on interest income, especially from sources like fixed deposits and various financial instruments. These forms essentially state that you declare your total taxable income to be below the taxable limit. They also state that your request for no TDS deduction.

What is Form 15G?

Form 15G is a declaration form available for submission by individuals below the age of 60, Hindu Undivided Families (HUFs), as well as trusts. It operates under the provisions of Section 197A of the Income Tax Act, 1961. Let’s explore the key features of Form 15G:

• Eligibility: Individuals below 60 years, HUFs, and trusts can submit this form.
• Submission: You must submit this Form before receiving any interest income.
• Applicability: It comes into play when your taxable income does not lead to a tax liability for the financial year.
• Residency: Form 15G is exclusively available for resident Indians.
• Income Limit: Total interest income should not exceed the minimum taxable income of Rs 2.5 lakhs for the financial year.

What is Form 15H?

The government tailors Form 15H as a self-declaration form specifically for senior citizens aged 60 years or above. It is designed to shield interest earned from investments like fixed deposits (FDs) and recurring deposits (RDs) from TDS liability for senior citizens. It operates under Section 197A, Subsection 1C of the Income Tax Act, 1961. Let’s uncover the essential features of Form 15H:

• Eligibility: Form 15H is designed for senior citizens aged 60 years or above.
• Income Limit: For individuals aged 60 or above, taxable income should not exceed the maximum exempt amount (Rs 3 lakhs). For those above 80 years, this limit is Rs 5 lakhs.
• Submission: It is advisable to submit this form along with your deposits to avoid waiting for Income Tax Return (ITR) processing.
• Necessity: You need to submit Form 15H when you expect your interest income to exceed Rs 10,000 for the financial year or when you anticipate that interest from bonds and debentures will exceed Rs 5000.

Difference Between Form 15G and Form 15H

Distinguishing between Form 15G and Form 15H is crucial to make an informed choice based on your specific financial circumstances. Here’s a summarized comparison:

	Eligibility	Income Limit	Submission Time
Form 15G	Applicable to individuals below 60 years, HUFs, and trusts.	Total taxable income should not exceed Rs 2.5 lakhs.	Both forms should ideally be submitted at the beginning of the financial year if you anticipate that your income will remain below the exempt limit.
Form 15H	Meant for senior citizens aged 60 years or above.	Taxable income should not surpass Rs 3 lakhs (Rs 5 lakhs for those above 80 years).	Both forms should ideally be submitted at the beginning of the financial year if you anticipate that your income will remain below the exempt limit.

Conclusion

Understanding the difference between Form 15G and Form 15H is crucial for anyone looking to maximize their interest income without incurring TDS deductions.It is also helpful to understand their differences to know how to e-file forms 15G and 15H on the Income tax Portal. It is advisable to seek guidance from a tax professional or financial advisor to determine which form aligns best with your unique financial situation.