Do I file Form 15G / 15H even if no tax is owed?
Relief or credit claim obligations of this kind are generally required on the facts rather than on the tax result, so a nil position does not remove one. Resident individuals within the eligibility conditions — and specifically not non-residents.
What happens if I have missed Form 15G / 15H for several years?
Missed years are dealt with as a package rather than one at a time, because the route chosen for the first year affects the relief available for the rest. We map the years and the obligations before anything is filed.
Is Form 15G / 15H the same as the other reports I already file?
No. The declarations that stop deduction at source on certain Indian income where no tax is ultimately payable. Satisfying a different obligation, even one covering the same accounts or entity, does nothing for this one.
Can an NRI file Form 15G to stop tax on a deposit?
No. These declarations are open to resident individuals who meet the eligibility conditions, and a non-resident is outside them entirely. A declaration filed by an NRI is not merely ineffective; it is an invalid declaration made to the bank. The route that does exist for a non-resident is the lower-deduction certificate, which is applied for rather than self-declared, and which the deductor then acts on. If a declaration has already been given, the sensible order of work is to withdraw it first and then deal with the deduction properly.
I signed Form 15H after moving abroad, what should I do now?
Tell the bank, and stop relying on the declaration. It was made on the footing that you were a resident individual within the eligibility conditions, and if that was not true when you signed it then the declaration is invalid. The practical steps are to have the bank record the correct residential status, to accept that deduction will resume on the deposit, and to recover any tax that ends up over-deducted through the Indian return for that year. Going forward, the lower-deduction certificate is the route that is open to a non-resident.
What is the correct way for a non-resident to reduce deduction?
The lower-deduction certificate. Unlike the declarations, it is not something you assert to your bank. It is applied for, and it is issued on the basis of what the applicant's Indian tax position is expected to be, with the deductor then applying the rate it specifies. It takes preparation, because the application has to show the income expected and the tax genuinely payable on it, so the work begins well before the interest falls due rather than after a deduction has already been taken.
Does my bank check residential status before accepting the declaration?
Banks hold a status against the account and the declaration is accepted against that record, but responsibility for the statement in the declaration remains the declarant's. That distinction matters, because a bank accepting the form is not a ruling that you were entitled to give it. Where an account status has never been updated after a move abroad, it is quite possible for an invalid declaration to be accepted and acted on for years, with the problem surfacing only when something else prompts a look. Updating the account status is the step that prevents it.
My status changed to non-resident mid-year, is my declaration still valid?
Treat it as spent. The declarations rest on the declarant being a resident individual within the eligibility conditions, so a change of status goes to the foundation of the declaration rather than being a detail to tidy up later. The order of work is to update the account records, withdraw reliance on the declaration, and then decide whether the lower-deduction certificate route is worth pursuing for the income still to come. Anything over-deducted in the meantime is recovered through the Indian return rather than from the bank.
Why was tax still deducted after I gave the bank Form 15G?
Usually because the declaration cannot do the work it has been given. It only stops deduction where the declarant is inside the eligibility conditions, so if the account is recorded as belonging to a non-resident, or the conditions are not met, deduction continues regardless of the form on file. The remedy is not to file the declaration again. It is to establish the correct status, claim credit or refund for what has been deducted through the Indian return, and use the lower-deduction certificate for future income if it is warranted.
What is a DTAA?
Double Taxation Avoidance Agreement — India's name for a tax treaty. It does the same work as any treaty: allocates taxing rights between India and the other country, caps Indian withholding on payments abroad, and sets out whether relief comes by exemption or by credit. To use one you generally need a tax residency certificate from the other country, Form 10F, and a PAN in the deductor's records. See DTAA relief between India and Canada.
What is TCS on foreign remittance?
Tax collected at source. When a resident individual remits money abroad under the Liberalised Remittance Scheme — or buys an overseas tour package — the bank or seller collects an amount of tax on top and deposits it against your PAN. It is not a cost and it is not a final tax: it appears in your annual tax statement and is set off against the tax on your return, with the excess refunded. The rates and the purposes they attach to have been amended repeatedly, so we confirm them for the remittance year. See LRS limits and TCS.
