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Form 15G – Form 15H and TDS details,features, eligibility and conditions.
Is there any way out to be assured that your bank does not deduct TDS on interest if your income is not taxable? The banks deduct TDS when the interest income is more than Rs 10,000 in a year. But if your income is below the taxable limit, then you can submit forms 15G and 15H to the bank requesting not to deduct the TDS on your interest.
Form 15G and Form 15H
Form 15G and form 15H are the documents which are submitted for not deducting TDS. These forms are submitted to make sure that your TDS is not deducted from your income. To apply for Form 15G and 15H you must have a PAN Card before applying. The Form 15H is for the senior citizens and Form 15G is for everyone else. Some of the banks allow to submit this forms online itself. These forms are valid for 1 financial year. So if you are eligible then you need to submit these forms every year.
Features of Form 15G and 15H
- These forms are used only for making the payments in the nature of the interest of securities (Banks/ Company Deposits), Dividends etc. These forms are not applicable for making other payments. Form 15G is required to fill in PF Withdrawal purpose if they don’t want to get their taxes deducted.
- These forms can be submitted to the banks, post office, companies etc.
- These forms have to be filed in duplicate making three copies, to the players which can be a bank, post office or a company etc. The player or the institution takes the data and stores in the records database.
- The record contains the entire interest to be paid to the depositor or the lender without the TDS.
- Form 15G is for the Indian Residents, HUFs and trusts whereas, Form 15H is for above 60 years of age.
Like for an example, you have opened a Fixed Deposit in the bank. If your interest income exceeds more than Rs 10,000 in a year then the bank will deduct 10% TDS or the Tax at Source. If you do not submit the PAN details then the TDS rate will hike at 20%. So to avoid TDS rate on interest income you need to submit the Form 15G and Form 15H.
TDS-Tax Deduction Source
TDS is a certain percentage that is deducted at the time of the payments of various kinds such as salary, commission, rent, interest on dividends etc. The deducted amount is then remitted to the Government account. This withheld amount can be balanced against the tax due. The person or the organization who is deducting the tax is called deductor and the person or the organization from whose the tax is deducted is known as deducted.
Objective Behind Filing the Form 15G and H
The TDS is deducted on some income if the amount is above Rs 5000- Rs 10,000 if the player is a bank. If the yearly payment does not exceed the limit then the TDS is not deducted.
Who can fill Form 15G and 15H
- The Indian residents only, HUF and AOP can submit the form 15G/H. While Form 15G is the Indian Residents who are below the age of 60 years. While the form 15H is for the Senior Citizens above 60 years of age.
- The NRI Companies and the firms are not applicable to submit the Form 15G/H. It is because for an NRI it can happen that their total income in India is less than the limit in the Financial Year. In such cases, you need to apply to the Income Tax Officer in your Jurisdiction in India requesting for a rejection of TDS. If the Income Tax Officer grants you the application of rejection of TDS, then you need to submit this to your payers, such as the bank claims, claim TDS exemptions. This certificate is called as Tax Exemption Certificate.
Validity of Form 15G/H
Both the Forms have the validity of One Financial Year only. Since, they are valid only for a year, if a person wants to apply for Nil/Lower Deductions on TDS on interest on Fixed Deposit for another Financial Year then you need to apply for this Forms again to your Banker.
Conditions For Filing the Form 15G
Firstly, the first and foremost condition for filing the form is a valid reason to request the bank or the Financial Institution not to deduct TDS.
The basic conditions for filing the Form 15G are
- The Final tax on estimated total income computed as per the Income Tax Act should be Nil.
- The aggregate of the Interest (excluding interest earned on the securities) received during the Financial Year should not exceed the basic exemption slab- 2.5 Lac in Annual Year 2015-16 and Annual Year 2016-17.
- if you meet these criteria, then you are eligible to file a 15G Form. You need to meet these two criteria. If the interest income is less than the basic exemption, but your tax liability is not Nil then you are not eligible to file the Form 15G.
Conditions For Filing the Form 15H
- Form 15H can be filed only the senior citizens who are above 60 years of age.
- The Final Tax on the investor’s estimated total income should be nil.
- So if you are above the age 60, then your taxable income for the financial year can be up to Rs 3 Lacs and if you are a super senior citizen above 80 years of age then the limit is Rs 5 Lacs.
If You Do Not Fill/ Miss To Fill The Form 15G/H
- If in case you are not liable to pay tax and you did not submit the Form 15G/H then you can get TDS certificate or Form 16A from the Bank and claim the refund through your annual income tax filing. The Income Tax Department will refund back if they found you are eligible for the pay tax criteria.
- If you provide a wrong information in the form then you might be charged with a Penalty under Section 277 of the Income Tax Act. This may include imprisonment ranging from three months to 2 years of fine. This term can also exceed to 7 years if the tax exceeds to Rs 25 Lacs.
Obtain An Acknowledgement After Submitting Form 15G/H
A lot people are having complaints regarding the wrong deduction of Tax even when the Form 15G/H is submitted. RBI states that these sorts of the issue may arise because of the misplacement of the of the forms or the bank must have lost the track. So to avoid these sorts of issues the RBI decides to give an acknowledgment at the time of Receipt of Form 15G/H. This will help to build a system of accountability and the accounts of the customers will be safe and secure and they will not be put into any inconvenience due to any omission on the part of the Banks.
Issue PAN Card Details When Submitting Form 15G/H
Make sure that you submit your PAN Card details to the bank/post office or the company while submitting the form. If you are failed o provide the PAN card details then the TDS will be deducted even if you have submitted the form 15G/H.
Hence, make sure that you file the Form 15G and Form 15H correctly so that you won’t face any trouble.
Form 26AS-Details about the Form, Features and Procedure to Download
Income Tax has always been making a strong and a convincing impact on the economy of the country. It is a boon and a key driver for the growth and development for any country. The Income Tax Department also manages the whole database of the Total tax paid by the employer/tax payer. This procedure of filing an income tax is called as “ITR Filing”. Well, while filing for an ITR there are various forms and documents that are needed to be submitted. One of such form is the 26AS Form. The income tax provides sufficient facilities and benefits to the citizens of the country.
Also, if there is no income tax in the country then it will be very difficult to collect funds and organize and maintain the systems like the Military System, Industry, Agriculture, Police etc which are the backbones of the society and country’s economic growth. Like for an example, it would be impossible to survive and stay safe without the Police Department. The Police department protects the society and provides us security. The army pack of the country also protects the country from the enemies from the terror attacks and crimes. Thus, in order to have a smooth functioning of all the systems the income tax is posted on all the citizens of the country all over the World.
Based on our consumption and needs there are different types of taxes that impose different tax rates accordingly like GST, Direct Taxes etc. The taxes that are imposed on us are spent on the following Government Organizations and Functions-
- National Defense
- Law Enforcement and Public Order.
- Protection of Human Rights
- Country’s Infrastructure
- Government Operation and Effective Functioning
- Educational System In the Society
- Health care, Pension and Unemployment systems
- Energy, Waste and Drainage and Transportation System etc.
- Form 26AS contains various details that were deducted from your income when you need to file an Income Tax Return. This is one of the important document that is required while you are filing for an ITR.
Understanding Form 26AS In Details
Form 26AS is an annual statement which holds the details of the Tax Credit which are maintained for each tax payer as per the Database record of the Income Tax Department. The Form 26AS is issued under the section 203 AA of the Income Tax Act 1961.
The Section 203 AA came into an effect from the 1st day of April 2005. The implementation of this new section states
The form contains various details of the taxes deducted from your income by the deductors. The deductors can be your employer, bank or a tenant.
Features of the Form 26AS
- The Form encloses the details of the advance taxes, self-assessment tax that you may have paid during the year.
- Besides that, it also contains the details of the tax collected at source (TCS) which is also mentioned in the statement.
- It will also state the details of any income tax refund received from the tax department during the relevant financial year.
- It will also reflect the annual details i.e, the Annual Information Return which is filed based on the different entities, on what the individual has spent or invested into. It mostly focuses on the high-valued transactions.
- Consider an example, if a person deposits cash in his/her savings account and the amount exceeds 10 Lacs then, the bank will send an AIR. The same goes for, if more than Rs 2 Lacs is invested in the Mutual Fund or if more than 2 Lacs is spent on the credit card.
- The details of the taxes in the statement are sent by the deductors and the sellers after the confirmation of the Banks that the taxes have been received.
Every tax payer has been advised to double check his Form 26AS to confirm that the taxes deducted and the advance tax paid during the year matches the tax deposited as per the Income Tax Department records. Any error in the Form can lead to the tax authority issuing the notice. This mismatch can occur due to the wrong entry of PAN Card details, Aadhaar Card Details, Assessment Year records.
Where Can You Download the Form 26AS
The Form 26AS can be downloaded from
- TRACES Website– The TRACES website works under the Income Tax Department which denotes- “TDS Reconciliation Analysis and Correction Enabling System”.
- Via Netbanking Facilities provided by certain Banks.
How To Download Or View the 26AS Form
To download the 26AS Form follow the steps that are mentioned below-
- Visit the official website of the Income Tax Department: incometaxindiaefiling.gov.in
- Log in using your Income Tax Department User ID and password. You need to register yourself first to receive the User ID and Password.
- Enter the User details, which include User Id, password, date of birth in DD/MM/YYYY Format. Enter the Captcha and Log in.
- A screen appears, which directs to “Go To My Account”. When clicking the My Account option a number of sub-section appears. Click on “View Form 26AS” in the drop-down.
- After clicking, you are redirected to the TRACES Website.
Redirecting to Traces - A box appears on the screen, on the TRACES Website. Click on the box and proceed.
- A link appears at the bottom of the page, “Click View Tax Credit (Form 26AS). To view the form.
- Choose the assessment year and the format in which you want to view the Form 26 AS. If you want to view the form online then leave it in HTML format. If you want to download it, choose the PDF Format. After choosing the desirable format to enter the “Verification Code” and click on the View/ Download.
- To open the document you have to enter the Password. The password of Form 26AS is your Date of Birth in DD/MM/YY Format.
- Thus, you have successfully downloaded the 26AS Form.
Through Net Banking of Your Bank Account
This facility is available to the PAN Card holder who has Net Banking Facility. If your PAN number is mapped to the particular account then the facility is available for free.
The Following Banks are officially authorized banks to facilitate Form 26AS.
- Axis Bank Limited
- Bank of India
- Bank of Maharashtra
- Bank of Baroda
- Citi Bank
- Corporation Bank
- City Union Bank Limited
- ICICI Bank Limited
- IDBI Bank
- Indian Bank
- Kotak Mahindra Bank
- Karnataka Bank
- Oriental Bank of Commerce
- State Bank of India
- State Bank of Mysore
- State Bank of Travancore
- State Bank of Patiala
- The Federal Bank Limited
- The Saraswat Co-operative Bank Limited
- UCO Bank
- Union Bank of India
Parts of Form 26AS
The Form 26 AS is made up from different Forms. It contains the following Parts-
- PART A- Details of the tax deducted at Source
- PART A1- Details of the tax deducted at the source for Form 15 G/ Form 15 H.
- PART A2- Details of the tax deducted at source on sale of Immovable Property u/s 194 (IA) For the seller of the property.
- PART B- Details of the tax collected at the source.
- PART C- Details of the tax paid (other than TDS and TCS)
- PART D- Details of the Paid Refund
- PART E- Details of the AIR Transaction
- PART F- Details of Tax Deduction on sale of Immovable Property u/s 194 (IA)
- PART G- TDS Defaults (Processing of Defaults)
PART A- Details of the Tax Deducted At The Source
This Part of the form contains the details of the TDS deducted from your salary, interest income, pension income and prize winnings etc. The TAN of the deductor and the TDS deducted and deposited are also mentioned. Here the information is based on quarterly.
PART A1– Details of the Tax Deducted At the Source for Form 15G/ Form 15 H
Here the details of the income are mentioned where no TDS has been deducted. It is because you have applied for Form 15G and Form 15H. You can verify the status of TDS deduction if you have already submitted the 15G and H Form. If you have not submitted the form then it will show “No more Transactions”.
PART A2- Details of the tax deducted at source on sale of Immovable Property u/s 194 (IA)
This part contains the information if you have sold your property and the TDS was deducted from the receipts. Then you can find the required relevant information here.
PART B– Details of the Tax Collected at the Source
This part contains the details of the tax collected at the Source by the seller of goods. You can view the entries if you are a seller and the tax is collected by you.
PART C- Details of the Tax Paid (other than TDS and TCS)
If you have deposited any tax by yourself then the related information can be found here. The details of the tax paid, self- assessment tax is present here. It also contains the details of the challan through which the tax is deposited.
PART D– Details of The Paid Refund
if you have received a refund then you can find out the details in here. Assessment of the year when the refund is applied. Along with the mode of payment, an amount paid and interest paid and also the date of the payment is mentioned.
PART E- Details of the AIR Transaction
Here the high valued transactions to the tax authorities are reported by the Banks and other financial corporations. Mutual fund purchases of high value, Property purchases, and high-value corporate bonds are also reported here.
PART F– Details of Tax Deducted on Sale of Immovable Property u/s 194 (IA)
If you have purchased any property then you have to get your TDS deducted before making payment to the seller. This part contains the information regarding the TDS deducted and deposited by you.
PART G– TDS Defaults (Processing of Defaults)
This contains the information regarding the defaults related to the processing of the statements and do not include the demand raised by the assessing officer.
TDS Mismatch in Form 26AS and its Rectification
The TDS Mismatch in the form 26AS is one of the common problems that is faced by some of the tax payers. The TDS mismatch is mainly the mismatch in between the records of TDS and the records uploaded in the form 26AS. After the deduction of the TDS/TCS, the person who is deducting the TDS amount should deposit the same with the income tax department.
Some of the possible reasons for the Mismatch of the TDS in Form 26AS is- Wrong input of PAN number or TAN number, Payment of TDS, Challan Identification number etc, the Wrong amount being mentioned in the TDS.
Rectification
To avoid such problems always match and compare the details between the TDS inputs and the inputs in Form 26AS.
Otherwise, intimate the person who has deducted the TDS. He will later file a Revised TDS return with the correct particulars that will later be visible in the Form 26AS.
NOTE- The person who has deducted the TDS to file the Revised TDS takes time to make changes. The income tax website does not get updated instantly. It takes time for the Form 26AS to get updates as well.
Conclusion
This form serves a lot of purposes. Besides cross-checking the data it is also used for ITR filing purpose.
You can visit this link to know the procedure to fill ITR offline: Filing ITR Offline step by step procedure.