Myths and Facts as FAQ on Submission of 15G and 15H

Myths and Facts as FAQ on Submission of 15G and 15H

Myths and Facts as Frequently Asked Questions on Submission of 15G and 15H
Regarding 15G / 15H submission for the Financial year 2018-19

1) What are the slabs for 15G and 15H?
Ans: 15G = Rs. 2,50,000/-, 15H = Rs. 3,50,000/- to 5 lakhs

2) What are the limits for Column number 16 and 17 in 15G/H?
Ans: 15G = Rs. 2,50,000/-, 15H = Rs. 3,50,000/- to 5 lakhs

3) What is the Slab for Super Senior Citizens (80+ yrs ) ?
Ans: Rs. 5 Lakhs.

4) PAN is there on 15G or 15H but still TDS deduction is taking place?
Ans: Check if PAN is there in Customer Identification Form of the Bank.

5) PAN was there previously but now 20% deduction is happening?
Ans: PAN might have been removed due to de-duplication or KYC updation and not inserted back by the Bank. Please get the PAN inserted in CIF details with Bank.

6) TDS is being deducted in 2nd holder’s PAN and not 1st Holder’s?
Ans: Wrong PAN is inserted by the Bank in 1st holder’s CIF. Get CIF of the first holder amended and insert correct PAN.

7) 15G or 15H is inserted but TDS is being deducted?
Ans: 15G or 15H is being inserted in bulk and each is not checked whether UIN ( Unique Identification Number ) is generated or not.

8) For each subsequent FD, the customer needs to give 15G or 15H latter during the year?
Ans: Yes, 15G or 15H needs to be given afresh for each and every FD separately.

9) Do I need to mention each and every fixed deposit account number in 15G or 15H?
Ans: If all the accounts are in same 1st CIF then only one entry will suffice for all the accounts. Get all your Customer IDs and CIF merged to have one and only one CIF ID.

10) In case of joint FD’s whether Second Holder has also to submit 15G or 15H.
Ans: 15G or 15H has to be submitted by the only 1st holder and not the Second Holder.

11) Apart from Individuals, are Clubs, Trusts, Educational Institutes, Companies, Firms, NRI allowed to submit 15G or 15H?
Ans: No. 15G or 15H is only for Indian Nationals Individuals having taxable income as NIL.

12) Is 15G or 15H an alternative for Non-Deduction of TDS by Bank and submission of advance or self-assessment tax by the customer?
Ans: No. TDS will be deducted if Interest income is more than Rs. 10,000/-. No other alternative apart from exemption certificate from Commissioner ( TDS ).

13) I have STDR with one-time Maturity, DoIi need to submit 15G or 15H every year?
Ans : Yes , Depending on your income slab and also if you wish non-deduction of TDS.

14) If any figure… Interest or TDS appears in Form 26AS, then Do I need to file Income Tax Returns?
Ans: Yes, Non-filing of such returns attracts rs. 10,000/- penalty.

15) When Do I really need to submit 15G or 15H, assuming my interest income is less than 2.5 lakhs?
Ans: a) If you change the Home Branch b) Renewal or New Fixed Deposit c) Change of Primary Holder d) Premature Closure and New FD Creation.

16) How many times can I submit 15G or 15H?
Ans: As many times as you wish.

17) Is email mandatory in 15G/ H?
Ans: Yes, Form 16A can be sent here.

18) Are MODS (Sweep FD’s) are covered under 15G or 15H?
Ans: No. MODS ( Multi Option Deposit Schemes ) or Sweep Fixed Deposits are created automatically and dynamically. Thus 15G or 15H is not possible in these type of accounts. TDS deduction will take place.

19) Can 15H be submitted for SCSS deposits?
Ans: No, SCSS principal is tax-free for that financial year of investment only. However, TDS will be deducted every year. 15H will not be effective for SCSS.