As a primary repository for the hard-earned fruits of our labour, banks play the most foundational role in the economy. However, the commercial advantage that banks have to pertain to the area of interest provisions. No one would want to see their hard-earned thoughtful investments slipping out of their hands. This usually happens in the form of Tax Deduction at Source(TDS). To ensure that our fixed deposits and the interests we earn from there are not subjected to TDS deductions, we are required to fill out a form which goes by the name- “Form 15 G”.
What is Form 15 G?
Form 15 G is an authorized document that an individual below the age of 60 years holding a fixed deposit account in a bank needs to fill out. This is done to ensure that the interests earned on the particular deposit account are not subjected to TDS deductions. Earlier, all fixed deposit accounts that had generated a gross interest amount of INR 10,000 and above in a given financial year were subjected to TDS deductions. From the financial year 2019-20 onwards, the Government has increased the limit for determining an account subjection to TDS deductions. The present threshold for determining the same is INR 40,000 in a given financial year.
Features of Form 15G
Key features of Form 15G are:-
- This form is a self-declaration form which is required for non-deduction of TDS if the annual income of the taxpayer is less than the exemption limit.
- All the rules and regulations of this self-declaration form are written under Section 197A provision of Income Tax Act, 1961.
- There have been various changes under the structure of Form 15G since 2015 for easing cost and compliance burden of the deductee and tax deductor.
- The current structure has been formatted by the Central Board of Direct Taxes (CBDT) for Form 15G and Form 15H (this is Form 15G for senior citizens).
- Form 15G can be used by taxpayers below 60 years of age. Any person above 60 years needs to fill Form 15H which is quite similar to Form 15G. This form is used only by senior citizens.
- For availing the benefit through Form 15G, one needs to submit it in the first quarter of any FY if there are any existing undertakings. For new undertakings, this form needs to be submitted before investment attracts any interest for the first time.
How to download form 15G?
Websites of all major banks in India make the above-mentioned form downloadable in their respective websites. Besides, one can even visit the website of the Income Tax Department to download the same – https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007845.pdf. The websites of major banks in India also have the option to submit the duly filled form online. It could be a bit confounding to see different versions of the given form in the various websites of major banks in the country. However, these are legitimate variations, and there is absolutely no need to panic. The generic version of the form is the one that appears on the website of the Income Tax Department.
Sample of Form 15G
Different financial institutions and banks offer different variants of Form 15G but one can check the general layout of the form which can be found on the official website of the Income Tax department.
Eligibility for submission
To be eligible for the submission of form 15 G, one needs to fulfill the following conditions:
- The person must be an individual Indian citizen as distinguished from a firm below 60 years of age
- The gross tax liability of the individual following exemptions must be zero
- The total earning from interests in the financial year must not exceed the exemption limit.
When can the form be submitted?
For Reduction in TDS burden in form, Form 15G can be submitted in the following cases:
- Form 15G can be submitted in cases of claims for exemption of TDS on interests earned in fixed deposits for an interest amount of Rs. 40,000 in a given FY.
- Earning income from interest on Bank Deposits: If anybody’s interest on fixed deposit or recurring in banks is more than an amount of Rs. 10,000 then banks are supposed to deduct TDS in a year as per FY 2019-20. For doing this, one needs to submit Form 15G to avoid deduction of TDS.
- TDS on EPF or Employees Provident Fund Withdrawal: If an employee withdraws his provident fund before completing five years of service tenure with the current organisation, deduction of TDS is applicable. But even then, if one’s total taxable income (including the provident fund withdrawal) balance is zero, then one has to submit Form 15G and claim an exemption if the gross taxable income is below the limit. It is applicable on withdrawals from one’s Provident Fund (PF) account.
- TDS from post office deposit interest – If an individual fulfils all the necessary conditions for submitting Form 15G, the Post Office is liable to accept self-declaration of this Form on post office deposits. The provision of a claim under 15G also includes National Savings Certificates (NSC).
- If one’s income from Corporate Bonds and Debentures exceed a certain in a year & TDS is applicable. Then this also allows him or her to take recourse to form 15 G.
- Apart from these, services availed through this form also extends to exemption claims for LIC maturity and for incomes through rent.
Basic instructions to fill the form
- Form 15G had two components, of which the first is the part that the individual needs to fill to make a claim for no-deductions of TDS on certain incomes.
- Apart from the name that appears on the PAN Card, the details of the given PAN CARD along with proper address need to be furnished. The reason for the latter is that NRI individuals are not allowed to fill the form. Also, details of Date of Birth need to be given.
- The latest assessment year should be mentioned.
- Along with these, the estimated income for which the claim is made along with the gross income for the financial year should be mentioned.
- Had the form been filled out on a previous occasion, details pertaining to that, including the aggregate amount of income should be given.
- The last part contains details of the investment against which the claim is made, such as the Investment Account Number.
- The second part of the form us to be filled by the deducting who advances the claim to the Government on behalf of the assesses.
Filling the form online
In the event of filling the form online On the websites of major banks, one needs to first log in to one’s internet banking site with a user ID and password.
- On clicking the online fixed deposits option, one will be directed to the details of his or her fixed deposit with the given bank.
- Forms 15G and 15H can be generated thereby, and all necessary details can be subsequently filled.
- One should not forget to mention the details of one’s bank, including the name of the branch.
- The form can then be submitted online.
Submission of Form 15G
The CBDT or Central Board of Direct Taxes has made tax submission easy by making the entire process digitalised. The below mentioned is the process of submitting Form 15G online. It is as follows:-
The taxpayers are required to fill up Form 15G online by visiting the official IT department’s website. According to the CBDT or Central Board of Direct Taxes, the deductor must assign Unique Identification Number or UIN for every declaration signed by taxpayers.
The person deducting the tax is required to provide the various details related to the UIN to the Income Tax Department of India through TDS statement which is submitted every quarter.
TDS claims if one forgets to submit
In case one forgets to submit form 15G on time, TDS will be deducted. However, there are two ways to reclaim the deducted amount
- Since banks must mandatorily make submissions to the IT Department, it is not possible for then to retrieve the amount. Rather one must file and submit an ITR ( Income Tax Return) claim which will be subsequently verified, and the amount returned.
- Since banks usually deduct the amount at the end of each quarter when the interests are added, one needs to submit form 15G immediately in order to avoid further deductions.
What is the Difference Between Form 15G and Form 15H?
The following below mentioned are the differences between Form 15G and Form 15H:-
It can only be availed by taxpayers below 60 years of age
It can only be availed by taxpayers above 60 years of age
This form can be proposed by individual taxpayers and HUF
This form can is submitted by individuals only
Form 15G is relevant to taxpayers or HUF with their annual income being less than basic exemption limit
Any individual might submit this form whatever be their annual income.
Various IT sections and TDS
Below are some of the common Tax Deducted at Source Sections for reference:-
Section of IT Act
TDS with PAN
TDS without PAN
Interest on Bank Deposit
Income Tax Calculation FY 2020-21
TDS Rate Chart for FY 2020-21 / AY 2021-22
Income Tax Refund Status Online
Instant PAN Card through Aadhaar
What is Form 16?
EPF Balance – Check PF Online
How To Activate Your UAN Number Online