Nifty99000 100%

Sensex99000 100%

Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 3.8
Tags:
Article rating: No rating
Tags:
What's in Store: Does Coronavirus Outbreak bode Ill for markets?
Categories: Exclusive

What's in Store: Does Coronavirus Outbreak bode Ill for markets?

The global supply chain for most products is linked to China, which is the epicenter of the Coronavirus outbreak. This can cause disruption globally with India impacted as well, depending on how long it lasts

Article rating: 4.0
Tags:
A 5-Step Simple Path To Loan Repayment
Categories: Exclusive

A 5-Step Simple Path To Loan Repayment

Today’s generation is all about the so called ‘Swag’ lifestyle, where patience is minimum and hustle-buslte is maximum. This swag lifestyle can make you end up with long credit card bills, heavy interest ridden debt, high EMIs and low or no cash reserves.

Article rating: No rating
Tags:
RBI Pauses On Interest Rate, What’s Next?
Categories: Exclusive

RBI Pauses On Interest Rate, What’s Next?

Central bank is understandably reluctant to cut rates when inflation is breaching its 2-6% mandate, say experts

Article rating: No rating
Tags:
A Few Smart Last-Minute Tax-Saving Investment Options For FY20
Categories: Exclusive

A Few Smart Last-Minute Tax-Saving Investment Options For FY20

Taxpayers should complete all their tax-saving investments well before the financial year deadline to avoid last-minute glitches.

Article rating: 5.0
Tags:
Does New Option Of Lower Tax Slabs Work For You?
Categories: Exclusive

Does New Option Of Lower Tax Slabs Work For You?

Moreover, a tax payer will not be able to claim carry forward, the losses under house property head under the new scheme

Article rating: 5.0
Tags:
Article rating: 4.0
Tags:
Nirmala's big-picture Budget 2020 offers no quick fix for growth
Categories: Exclusive

Nirmala's big-picture Budget 2020 offers no quick fix for growth

Disappointed Markets also reacted negatively on account of non-abolition of LTCG, confusion about DDT removal impact and taxing dividends in hands of recipient

Article rating: 4.5
Tags:
Loans: The Unwanted Guest Costs You More
Categories: Exclusive

Loans: The Unwanted Guest Costs You More

Banks, finance companies always counting on borrowers to make a mistake and pay interest or even late fees

Article rating: 5.0
Tags:
6 Budget Announcements That Impact Your Personal Finance
Categories: Exclusive

6 Budget Announcements That Impact Your Personal Finance

New income-tax rates are optional; dividends to be taxed at your hands; ESOPs get tax relief; timeline to avail loan for affordable housing extended; definition of NRI changed and much more

Article rating: 3.8
Tags:
Article rating: 5.0
Tags:
RSS

News

Here’s all you need to know about form 15G and 15H

Author: Balwant Jain/Wednesday, June 13, 2018/Categories: Tax, Expert View

Here’s all you need to know about form 15G and 15H

The bank is required to deduct TDS when interest for whole year on all types of deposits account exceeds Rs 10,000 in all the branches taken together with core banking, otherwise the Rs 10,000 threshold is considered for each branch. From the current year for senior citizen the limit has been raised to Rs 50000. The TDS is not applicable for saving bank interest paid to resident taxpayers.  The tax is deducted by the bank every year in respect of interest accrued till March 31 in case of FD maturity date is beyond March 31 as well as paid during the year.

Can you submit form No. 15G?

Any resident person including an HUF can submit form 15G but a non resident as well as a company and partnership firm cannot submit it. You can submit form 15G if you satisfy two conditions cumulatively: Your tax liability should be nil as well as aggregate of the interest from all the sources for which you are submitting form 15G should not exceed basic exemption limit i.e. Rs 2.50 lakhs for individuals and HUFs. So in case even if you have a small tax liability on your income, technically you cannot submit this form. Such situation may arise where due to various deductions available, the tax payable on your total income may be nil but if the total interest income from all the sources exceeds Rs 2.5  lakhs,  you cannot submit form 15G but the payer will deduct TDS.

Who can submit form 15H?

A senior citizen can submit form 15H if his total interest from a particular bank exceeds Rs 50,000 and has to satisfy only one condition i.e. his tax on total income is nil though  the total interest may exceeds the basic exemption limits.

How the forms can be submitted?

Forms 15G and 15H can either be submitted physically or electronically through the website of the bank.  While submitting the forms you need to submit photocopy of PAN card, failing which the bank will deduct tax @20% in spite of having submitted the form well in time. Please obtain acknowledgement of the form submitted for future reference.

When the bank deducts tax before you submit the form

Ideally you should submit form 15G or 15H at the beginning of year before any tax is deducted. However, if tax has already been deducted  before submission of your form, you do not have any option but to claim refund for such TDS by filing the ITR as you cannot get refund for such TDS from the bank.

So, file your form 15G or 15H only if you are eligible to file the same and have it filed before the bank actually deducts any tax on it and mention your PAN correctly.

The author is a CA, CS and CFPCM

Print Rate this article:
5.0

Number of views (2037)/Comments (2)

Balwant Jain
Balwant Jain

Balwant Jain

Other posts by Balwant Jain
Contact author

2 comments on article "Here’s all you need to know about form 15G and 15H"

C.Shanmugasundaram

6/13/2018 7:35 PM

Thanks for the message. Even after submitting 15H, if the bank deduct tax what we have to do?


Editor @thefinapolis

6/29/2018 2:57 PM

The author says that once the tax is deducted in spite of you having submitted the form no. 15 G or 15 H, your only option is to claim income tax refund. You can file a complaint with banking Ombudsman but the tax once deducted can not be refunded by the bank under any circumstance.

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free