Question

What is Form 15G and Form 15H in the context of mutual fund IDCW taxation?

Accepted Answer

Self-declaration forms submitted by investors to prevent TDS deduction on IDCW — 15G for below-60 age group and 15H for senior citizens — used when total income is below taxable limit — Form 15G (for investors below 60 years) and Form 15H (for senior citizens 60+ years) are self-declaration forms submitted to AMCs stating that the investor's total income for the year will be below the basic exemption limit, so no TDS should be deducted on IDCW. These forms must be submitted at the beginning of each financial year. If income subsequently exceeds the exemption limit, the investor must pay the due tax.