Form 15G – Income Tax

Form 15G is a declaration that requests an exemption from TDS on interest payments. If the taxpayer’s total income is less than the taxable limit, he or she can take advantage of this provision. This page provides a quick overview of Form 15G.

Eligibility for Filing Form 15G

Form 15G is a self-declaration form that can be used to make a claim against TDS on certain types of income. The following are the eligibility requirements for the form:

  • It can be submitted by anyone under the age of 60 who is not a company or a firm.
  • The person filing the claim must be a permanent resident of India.
  • There is no tax liability for the person who makes the claim.
  • The person’s total interest income for the given financial year is less than the basic exemption level.

Form 15G – Income Tax

Benefits of Submitting Form 15G

Form 15G is used to achieve the following goals:

  • To prevent banks from deducting TDS. If the interest on a fixed deposit exceeds Rs 10,000 in a given financial year, banks deduct TDS.
  • Premature withdrawal of funds from EPF (before five years), subject to the condition that the fund’s balance is greater than Rs 50,000.
  • To take advantage of post office savings accounts and national savings plans.
  • To be excluded from TDS on income from corporate banks and debentures if the income exceeds Rs 5,000.
  • To get a TDS exemption on the income from a life insurance policy’s maturity proceeds. If the income from the profits is less than Rs 1 lakh, the assessee can claim for it.
  • If the total rental consideration in a given year exceeds Rs 1.8 lakhs, the rental income is exempt from TDS. If a person’s total income falls below the basic exemption ceiling, he or she may file a claim against TDS.

Filing Form 15G

Form 15G can be filed either physically or electronically, following prior verification, in compliance with the methods, formats, and standards. The person filing the claim should ensure that Form 15G is completed with a valid PAN, as failure to do so will result in a 20% tax deduction. The person filing the claim must include the following information:

  • a name (as specified in the PAN card).
  • The year before, for which no deductions were requested.
  • Status as a resident.
  • Address for communication
  • The status of the tax assessment.
  • The most recent evaluation year for which the returns are being evaluated.
  • The amount of income for which a declaration is being made is estimated.
  • Estimated total revenues for the current fiscal year.
  • Details of any previous Form 15G declarations (if any), as well as total income.
  • Details of the investment for which a declaration is being made.

You may finish the form 15G filing process in the following manner:

Step 1: Log in to your bank’s internet banking system.

Step 2: Select the online fixed deposits tab after logging in, which will take you to a page with your fixed deposit information.

Step 3: You will be given the option of generating Form 15G or Form 15H, with Form 15G being the more important.

Step 4: On the next page, fill in the required information as outlined in the details above.

Step 5: Enter the bank’s branch information.

It’s vital to remember that when filling out the form, the taxpayer should make sure he or she doesn’t have any liabilities and that the entire aggregate interest income for the year falls under the basic exemption limit.

Consequences of Default

If you fill out Form 15G incorrectly, you could face the following consequences:

  • For providing an erroneous declaration with the intent of evading taxes in the number of one lakh rupees, imprisonment for a period ranging from 6 months to 7 years is possible.
  • Other than the above-mentioned default, the assessee could face a sentence ranging from 3 months to 3 years in prison.