Reasons Why Form 15G & 15H Are Extremely Useful In Saving Taxes
Paying taxes can seem like a burden to most of us. Especially to those who have limited income. While it is legal fraud to not pay your part, certain legit ways can help you save taxes. Form 15G and 15H are one such way. They primarily serve similar functions but cater to people with different age groups. You can look up and know more on how to save taxes in order to direct a large chunk of your money back into your account.
If you are new to these terms, you have landed in the right place. In this article today, we will discuss all these forms, the basic differences, how to fill 15G Form, and reasons why these forms are useful for people who wish to save taxes. Therefore, let us dive right into the heart of the article without further ado.
Advantages of 15G And 15H Forms
TDS or Tax Deductible at Source is a part of the tax that is deducted by your payer before he gives you your income. This income could be from multiple sources. It can either be your salary source, business, capital gains, or the interest income that your bank pays on your deposits.
If your yearly interest on your deposits exceeds over Rs. 40,000 (50,000 in the case of senior citizens), the bank is liable to deduct your TDS. But if the income is not taxable, you can submit Form 15G to avoid the TDS deduction applicable to your income. It is a simple form and if you know how to fill 15G Form, the rest is a cakewalk.
It allows people with a smaller income to eliminate the burden of taxes, especially for older people and those who earn solely from deposits. One must submit all legit proofs to the deductor to ensure that he does not deduct the amount for he too is duty-bound to the government.
Difference Between 15G And 15H Forms
There is not much difference between the two forms except that Form 15H is for senior citizens. There are two different forms simply because the interest rates differ. Thus, the 15H Form must be submitted by a senior citizen above the age of 60 if his income is eligible for TDS.
How to Fill 15G Form?
Knowing how to fill 15G Form is the first step to claim a part of your money. You can get the form online. After you have downloaded it, you are required to fill in some basic details like:
- You name
- Your PAN card details
- Whether you are an individual a Trust or HUF
- Previous year
- Your nationality
- Address details- this includes your residential status, phone number, and email
- Whether your income is above or below the taxable limit.
- Your previous year’s estimated total income
- Details and nature of income
- Amount of income
- If you have filled 15G form previously or not
Filling a 15H form is very similar and if you know one, you can easily fill the other.
Things to Keep in Mind
Now that you know how to fill 15G Form, you are also educated about filling the 15H form. However, there are still certain things that you must remember before you download either of the forms. Those are:
- Both the forms are meant for residents.
- You cannot submit the form if the income exceeds the exemption limit.
- Your claim must be backed by proper and legal proof.
- The details you put in your form must not be misleading.
Thus, Form 15H and 15G are a great way to ensure that a part of your taxes comes back to you. We all crib about paying taxes but only a few of us make an effort to find ways to eliminate this financial burden. These forms could be your way out.Reasons Why Form 15G & 15H Are Extremely Useful In Saving Taxes