Does misuse of Forms 15G 15H in order to avoid tax invite penalties or punishments

Does misuse of Forms 15G 15H in order to avoid tax invite penalties or punishments

Form 15H and 15G

Form 15H and 15G are self declarations forms required to furnished by the assessee to the bank for lower deduction or nil deduction of TDS on interest on Fixed deposit or recurring deposit. Assessee should have PAN while applying these documents with banker.

As per section 194A of income tax act 1961 all Banks or other financial institutions shall deduct TDS on interest only if such a payments exceeds Rs 10,000 in any financial year. The deducted amount shall be credited to government within specified time. The same will be reported in 26AS of assessee which can be verified by log in into account at income tax department. Bank will be liable to issue form 16A after deduction of TDS.

Form 15H is for senior citizens who are 60 years or more and form 15G is for all people other than senior citizens. Form 15H and Form 15G are valid for one financial year so you have to submit the form every year to ensure the bank will not deduct TDS on interest income

Form 15G

As mentioned above form 15G can be submitted by non senior citizen whose age is below 60 years and should satisfy the conditions and criteria as follows

1. The Tax payable on estimated income should be nil

2. The total of interest income should be less than basic exemption limit

Conditions to be satisfied to submit form 15G



1. Assesee must be individual or HUF

2. Age should be less than 60 years

3. Must be resident Indian

4. Tax must be nil

5. Total interest income should be less than Rs 2,50,000

Form 15H

As mentioned above form 15H can be submitted by senior citizen whose age is equal to more than 60 years and should satisfy the conditions and criteria as follows
1. Tax on estimated income should be nil

Conditions to be satisfied to submit form 15H

1. Assesee must be individual or HUF

2. Age should be more than 60 years

3. Must be resident Indian

4. Tax must be nil

Forgot to submit form 15G and form 15H

Forgot to submit form 15G and form 15H don’t worry, in such situations banks would have already deducted TDS. The only way to seek refund is to file your income tax return and get your refund from income tax department. Banks cannot refund TDS since they would have already deposited the same to income tax department. Hence we are filingmantra team help you in getting excess refund that have been deducted as TDS.

Purpose for which form 15G and form 15H can be submitted



1. TDS on Employee provident fund withdrawal

2. TDS on income fro m cooperative bonds

3. TDS on rent

4. TDS on post office deposits

5. TDS on insurance commission


Conclusion

Form 15H and 15G are self declarations forms required to furnish by the assessee to the bank for lower deduction or nil deduction of TDS on interest on Fixed deposit or recurring deposit. Assessee should submit these forms only when total income is less than basic exemption limit. It is the important thing that has to be submitted in order to avoid tax deductions at source but it should not be used to avoid the taxes as your income is getting reported to income tax department. You should be careful while submitting the forms.