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What is Form 15G?

 

Banks deduct Tax Deducted at Source (TDS) when interest income earned by an individual is more than INR 10,000. But if your total income is below the taxable limit, you can simply submit Form 15G to the bank requesting them not to deduct any TDS on the interest that you have earned in a financial year. Interest income is the money earned by holding a substantial amount in any one of your savings accounts. This form can be downloaded from the respective bank website or by branch visit. A PAN is mandatory when applying for this form. Form 15G is valid for a single financial year, and hence, has to be submitted every year. It is advisable that you submit Form 15G at the beginning of the financial year to avoid any deductions by your bank.

 

Features of Form 15G

 

  • It is a self-declaration form for seeking non-deduction of TDS on specific income as an annual income of the tax assessee is less than the exemption limit.

  • Rules regarding the Form 15G are mentioned under the provisions of Section 197A of the Income Tax Act, 1961.

  • The format of Form 15G has undergone considerable change in 2015 intending to simplify the compliance burden and costing of both tax deductee and deductor.

  • The current format of Form 15G and Form 15H (the senior citizens variant for Form 15G) introduced by CBDT (Central Board of Direct Taxes).

  • Form 15G can be submitted by individuals below the age of 60 years. Any individual above 60 years falls in the category of senior citizens.

 

Eligibility criteria for submitting Form 15G

 

  • You are an individual or a person other than a company or a firm.

  • You must be a resident Indian for the applicable Financial Year.

  • Your age should be 60 years or less than.

  • Tax liability calculated on the total taxable income for the financial year is zero.

  • Total interest income for the financial year is less than the basic exemption limit.

 

Components of Form 15G

 

Form 15G is a two-page application form comprising of Part A and Part B.

Part A consist of:

  • Name and PAN details.

  • Details about the financial year.

  • Address and contact details.

  • Details about income - including nature of income and section under which it is deductible.

  • Declaration stating that the information provided is accurate and not misleading.

Part B consists of:

  • Name of individual with tax liability.

  • PAN and TAN details.

  • Aadhaar number.

  • Address and contact details.

  • Amount of income paid.

 

How to Fill Form 15G Online

 

You can visit your respective bank’s website to download Form 15G or fill it online from the bank’s website itself. You need to fill the following details.

  1. Name of Declarant - Your name

  2. PAN card details - Your PAN number

  3. Status - To distinguish between an individual, HUF or a Trust

  4. Previous Year - It refers to the current financial year for which you are filling up the form

  5. Residential Status - Mention your nationality

  6. Address Details - Your residence and contact details such as email, phone number, state, city and PIN code.

  7. Option A - Whether assessed to tax under the Income Tax Act, 1961? - If your income was above taxable limit in any of the past 6 years, answer this question with ‘yes’

  8. If yes, then you have to mention the latest year in which your income was above taxable limit

  9. Estimated income for which declaration is made - Your income on which TDS should not be deducted

  10. Estimated total income of the previous year in which income mentioned in column 16 to be included - Calculate your total income that you have earned during the year.

  11. Details other than Form 15G - If you have filled Form 15G in the past, mention the total number of forms

  12. Details of income for which declaration is filed - Nature and amount of income

  13. Once you have mentioned the above details, ensure that you are filing for yourself or on behalf of HUF or Trust.

 

What if I forgot to submit Form 15G?

 

Steps to follow are mentioned below:

Step 1: Claim your TDS refund by filing an income tax return.

 

Once a bank or any other makes a TDS deduction, there will not refund you as they are mandatory required to deposit the amount with the Income Tax Department.

The only way out is to get an income tax refund by filing ITR. Upon verification, the Income Tax Department will process your request for refund back and credit the excess tax deducted for the financial year.

 

Option 2: Immediately submit Form 15G to avoid further deductions for the current financial year.

 

Usually, bank makes TDS deduction on every quarter-end of the financial year wherever the interest is applicable on fixed deposit, recurring deposits, and on your savings. To avoid TDS deduction, it is a must to submit Form 15G as soon as possible to avoid any additional deductions for the current fiscal.

 

DISCLAIMER- These materials are public information and have been prepared solely for educational purposes. These materials reflect only the personal views of the author and are not individual legal advice.

It is understood that each case is fact specific and that the appropriate solution in any case will vary. Finally, the owner will not be accountable for any loses injuries or damages from the exposures or usage of this information.

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