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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.
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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
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.
- Form 12B
- Form 12Ba
- Form 26QB
- Form 64A
- Form 10C
- Form 15G
- Form 15H
- Form 16
- Form 16A
- Form 16B
- Form 24G
- Form 24G
- Form24Q
- Form 26AS
- Form 27C
- Form 49B
- Form 16 And 16A
- Form 27EQ
- E-File Tax Returns Without A Form-16
- Form 24Q,26Q,27Q,27EQ,27D
- Tax Sections
- Section 148
- Section 154
- Section 194C
- Section 194J
- Section 195
- Section 40A2
- Section 40A3
- Section 43B
- Section 44AB
- Section 54EC
- Section 80CCC
- Section 80CCD
- Section 80D
- Section 80DD
- Section 80EE
- Section 44AD
- Section 80DDB
- Section 80GG
- Section 80GGC
- Section 80TTA
- Section 80GGB
- Section 87A
- Section 80U
- Section 80E
- Section 80CCG
- Section 80CCF
- Section 44AA
- Section 276B
- Section 24
- Section 192A
- Section 139
- Section 80RRB
- Section 44AE
- Section 94A
- Section 194H
- Section 80C to 80U
- Section 44Ad and Section 44AE
- Deductions Under 80C
- Deduction Under Section 80G
- Section 80DD - Deductions On Medical Expenditure
- Section 234A, 234B And 234C
- Factors Under Section 80C
- TAX
- Income Tax
- Sales Tax
- Service Tax
- Goods and Service Tax(GST)
- Income Tax Slab
- Income Tax Return
- Income Tax Refund
- Income Tax Refund Status
- Income Tax Calculator
- e-Filing ITR
- House Rent Allowance(HRA)
- HRA Calculation
- Income From House Property
- How To Calculate Income Tax
- e-Payment
- How To Pay Income Tax Online
- Which ITR To File
- ITR-V to Income Tax Department
- Challan 280
- TDS
- TDS On Salary
- TDS Refund
- TDS Rates
- Capital Gains Tax
- Capital Gain Calculator
- Medical Reimbursement
- Tax Exemption
- Inflation Index
- Custom Duty
- Conveyance Allowance
- Dearness Allowance
- VAT
- Professional Tax
- Property Tax
- Union Budget
- Tax Calendar
- OLTAS
- Tin Number
- Income Declaration Scheme
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- Agriculture in Union Budget
- Union Budget for Rural Sector
- Budget for Youth Employment
- Budget for Health Care Sector
- Railway Budget
- Union Budget for Energy Sector
- Union Budget for Financial Sector
- Fiscal Situation
- Funding of Political Parties in Budget
- Union Budget for Defence Sector
- Union Budget Expenditure
- Union Budget Receipts
- Budget Appropriation Bill
- Finance Bill
- Union Budget Analysis
- Union Budget for Senior Citizen
- Union Budget for Logistics Sector
- Maternity Benefits from Union Budget