Form 15G is a document that must be submitted to ensure that TDS is not subtracted on your come provided you are eligible for the same. Form 15G is valid for one financial year, and eligible individuals must submit them every year.
Taxes form an integral component of every working individual’s life, constantly reminding him/her about his duty towards the nation, a duty expected to be fulfilled by paying tax. TDS can be a taxing term for us, with most of us planning ways to reduce the amount we pay in the form of TDS. Clear vision and a basic understanding of procedures can go a long way in helping you save some of your hard earned money.
What is Form 15G?
Form 15G is a critical tool in the income tax arsenal of our country, designed to aid taxpayers when it comes to TDS. In essence, it is a form which is used to request the Income Tax department not to deduct tax or TDS for a particular instance. Tax free income from certain investments can be taxed if this form is not filled, making it a crucial money saving asset. In simple terms, this is a self-declaration form an individual is expected to furnish to the relevant authority to avoid TDS on interest in case of fixed and recurring deposits.
When to use Form 15G?
This form can be used when an individual hopes to avoid TDS on interest in case of securities, Provident Fund, NSS, bank/company deposits, etc. One cannot use this form to save TDS from any other source of income, making this an extremely specialised form.
Who can Submit Form 15G?
Form 15G can be submitted by individuals who wish to save TDS on the interest earned through certain investments. One should have a valid investment, in order to be eligible to use this form. Other factors one should consider are mentioned below.
- Indian resident – You should be an Indian resident in order to be able to use the provisions under Form 15G. NRIs cannot avail these benefits.
- Age – Form 15G is directed towards a particular age group and only individuals below the age of 60 years can use this form.
- HUF/trust – Apart from individuals, Hindu Undivided Families and trusts can use this form to save on TDS.
- Interest – This form can be used when the interest on your deposits exceeds Rs 10,000 in a financial year. One should also keep in mind that the total aggregate of the income plus the interest in a financial year should be under the exemption limit of the Income Tax Slabs.
Form 15G Example
Mr. Ram, aged 43 years and residing in Delhi has an annual income of Rs 1.2 lakh from his job and he also earns Rs 60,000 as interest from various deposits, making his total income Rs 1.8 lakh. He is eligible for deductions worth Rs 1 lakh, taking his total income after deductions to Rs 80,000. He can use Form 15G to avoid TDS on the interest as his total income prior to deductions falls under the exemption limit according to the tax slabs.
Components of Form 15G
Form 15G is simple and straightforward to understand, containing provisions for the following elements. Part 1 of the form consists of the following:
- Name and PAN details of individual
- 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 2 of the form has the following components:
- Name of individual with tax liability
- PAN details
- Unique Identification number
- Address and contact details
- TAN details
- Amount of income paid
Things to remember while filling Form 15G
Individuals filing Form 15G should keep the following points in mind.
- Check eligibility
- Ensure all details are entered correctly, misleading information could cause problems later
- Mention the right assessment year while filling the form
- Do not over/underestimate the estimated income you can expect
- Only fill Part 1 of the form. Part 2 should not be filled
- This form is not a replacement for your income tax return and you need to file it
- Attach a copy of your PAN card with the form
- Ensure to take an acknowledgment after submitting this form
How to Fill Form 15G for PF Withdrawal?
Follow the steps given below to fill up Form 15G for online EPF withdrawal:
- Step 1: Login to the Employees’ Provident Fund Organisation’s (EPFO) Universal Account Number (UAN) portal for members.
- Step 2: Click on 'Online Services – Claim (Form 31, 19, 10C)’
- Step 3: Verify your bank account (the last 4 digits)
- Step 4: Under ‘I want to apply for’ click on ‘Upload form 15G’
There are two sections for Form 15G. If you want to claim no-deduction of Tax Deducted at Source (TDS) on certain incomes, fill up the first section as follows:
- Field 1: Name of the Assessee (Declarant) – Enter the name as mentioned on your PAN Card
- Field 2: PAN of the Assessee: Enter your valid PAN card
- Field 3: Status: Enter the income tax status as applicable to you (Individual/ Hindu Undivided Family (HUF)/Association of Persons (AOP)
- Field 4: Previous Year: Select the previous year as the financial year for claiming non-deduction of TDS.
- Field 5: Residential Status: Enter your residential status as a resident individual because NRI is not allowed to submit Form 15G.
- Fields 6-12: Address: Enter your communication address along with the PIN code
- Fields 13-14: Enter your email ID and phone number
- Field 15 (a): Whether assessed to tax under the Income-tax Act, 1961?
- Tick mark ‘’Yes’’ if you were assessed to tax for any of the previous assessment years under the Income Tax Act, 1961
- If yes, the latest assessment year for which the returns have been assessed
Ensure that all the details entered by you are accurate and submit the form to the deductor who will submit it to the income tax department.
Where should you submit Form 15G?
It can happen that you are at a loss after filling the form, unsure as to where to submit it. These forms need not be directly submitted to an income tax office. Forms can be submitted to your bank, post offices or the company you work for.
For how long is Form 15G valid?
The validity of Form 15G is limited to the financial year in which an individual has filed and furnished this form. It is valid for 1 financial year only and an individual is expected to furnish a new form for a different year.
Know about: Form 15G and 15H to save TDS on Interest Income