Thursday, 17 January 2013

Form 15G & 15H

Normally, when interest amount goes to near about TDS Deducted amount, then the Depositor Deduct TDS on Depositee Amount. But on the request of Depositee the depositor did not deduct TDS on the Interest or Commission amount and in place of TDS issuing the Depositee submit Form 15G or 15H. It is high time to give form 15G and 15H of income tax to the deductor of TDS on your deposit. Form 15G and 15H are the declaration to the deductor that his/her income falls below the income tax taxable limit. Income tax has various acts in which tax is deducted even the assessee has income below the taxable limit. Section 197A of income tax act gives some relief as present various forms to avoid deducting TDS.

To whom these forms should be given-
The point is simple. The person or the company to whom you have given the loan like if you have given a loan and getting interest to ABC company or you have some fixed deposits in the banks, you need to issue form 15G and 15H to the respective company or bank.

Interest amount limit-
The interest earned for fixed deposited in banks has the limit of 10000. It means if your interest income is less than 10000 rupees in a financial year, you needn’t to give them form 15G an 15H. In the case of loan advance, interest on loan, bonds, debenture and interest income other than bank the limit is 5000 rupees.

Difference between form 15G and 15H-
Form 15G:- Form 15G are to the person who is not a senior citizen, whose age is less than 65 years( the senior citizen age is reduced to 60 from the analysis year 2012-13) and Hindu Undivided Family(HUF)

Form 15H:- These forms are to be issued by the person who is senior citizen.-
So there is an excel based Form 15G and 15H preparation utility in which the forms are easily be filled and printed. There is no restriction to the numbers of forms in this utility. The main features of this programme is auto filled feature with this you need once your name, father’s name, pan number, address and loan amount and the forms are automatically created in excel which is easy to print option.

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