Form 15G: What is It, How to Fill it & More

Sarkaritel
By Sarkaritel August 4, 2022 16:55

Form 15G: What is It, How to Fill it & More


In cases when an individual’s interest income exceeds INR 10,000, banks deduct Tax Deducted at Source (TDS). However, if your total income falls below the taxable threshold, you may easily ask the bank to stop deducting TDS on the interest you have earned during a financial year by submitting form 15G to them. Holding a sustainable sum in one of your savings accounts will generate your interest income. You can visit a branch or get this form from the relevant bank’s website.

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Since Form 15G is only valid for one fiscal year, you should fill it out annually and submit your Form 15G on a prior basis. Holders of fixed deposits (individuals under the age of 60 and HUFs, or Hindu Undivided Families) should fill Form 15G. Please keep reading to learn more about it and how to fill form 15G.

Eligibility for Submitting Form 15G

  1. Your age must be less than 60.
  2. The annual interest income must be below the basic exemption limit for that year.
  3. You can be a single person, a Hindu Undivided Family (HUF), or a trust, but not own an organization or a business.
  4. You must be a citizen of India.

How to Fill Form 15G Online?

You can visit your respective bank’s website to download Form 15G or fill it out online from the bank’s website itself. You should follow the given details to fill out the form:

  • Name of assessee
  • Details of PAN
  • To distinguish between a Trust, HUF, and a person.
  • You should write the correct account number.
  • The financial year for which you claim the non-deduction of TDS should be the prior year.
  • Residential address and email, phone number, state, city, and PIN code.
  • If you could obtain the tax under the Income Tax Act of 1961’s provisions for any prior assessment years, check the appropriate box.
  • If you check for yes, you must provide the most recent year in which your income was above the threshold for taxation.
  • Information regarding income, such as the type of income and the tax code provision under which it is deductible.
  • Calculated total revenue for the prior year, including the income from column 16: Determine the total amount of money you made this year.
  • Other information – If you have already filled out Form 15G, state the total number of forms.
  • Declaration stating that the information provided by the assessee is accurate and not misleading.

The deductor, or the person who will deposit the tax withheld at source to the government on behalf of the tax assessee, must complete the second portion of Form 15G. The second part includes:

  • Name of the person with a tax penalty.
  • Details of PAN and TAN.
  • Aadhar Number
  • Residential address and contact number.
  • Paid income amount.

Things to Keep in Mind While Filling Form 15G

  • See if you fulfill all the eligibility parameters.
  • Go through your form twice to ignore the mistakes.
  • You must write the correct assessment year.
  • Keep your predicted income from being overstated.
  • You will need a copy of your PAN card when filling out the form.
  • After submission, you must take the slip.

When Does the TDS Apply?

If the person wants to withdraw the amount deducted from his salary in an EPF of more than Rs.50,000 in less than 5 years of job.

  • If the person submits the PAN card, the EPF is deducted at 10 percent (Form 15G is not submitted).
  • If the person fails to provide the PAN Card, TDS will be withheld at 34.608 percent (Form 15G is not submitted).

When is the TDS Not Relevant?

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  • When someone moves money from one EPF account to another.
  • The termination of employment may have been the employee’s poor health, the employer’s decision to cease operations, the conclusion of a project, or another factor beyond the employee’s control.
  • If an employee withdraws EPF money after five years of employment (including time spent with a previous employer).
  • If the employee has fewer than five years of service, the EPF amount is less than Rs. 50,000.
  • If an employee withdraws more than or equal to Rs. 50,000 after working for less than five years and does so while submitting Form 15G/15H and a PAN Card.

This is crucial since the bank won’t be able to refund the tax if it has already been deducted and paid to the government. The only option to reclaim your money is to file an income tax return and request a refund for the TDS amount. We hope now you understand what is form 15G and how to fill form 15G.

Since Forms 15G and 15H have a one-year expiration date, you will need to resubmit new forms the following fiscal year to obtain reduced or no TDS. With this, you can be assured that the returns on your fixed deposit will be as high as possible.

Sarkaritel
By Sarkaritel August 4, 2022 16:55