Form 15G - Income Tax

Form 15G

Form 15G – Income Tax

Form 15G is a declaration requesting for an exemption from deduction of TDS on the interest amount. The taxpayer can avail this provision if his/her total income is below the specified taxable limit. This article is a brief account on Form 15G. 

Know more about Income Tax Form 15H

Eligibility for Filing Form 15G

Form 15G is a self-declaration form which is used for the purpose of making a claim against TDS on specified income. The eligibility criteria pertaining to the form is listed below:

  • It can be submitted by a person who isn’t a company or a firm, and whose age is below 60 years.
  • The person raising the claim must be an Indian resident.
  • The person raising the claim is devoid of any tax liability.
  • The total interest income of the person with respect to the particular financial year is below the basic exemption limit.

Benefits of Submitting Form 15G

Form 15G is used to fulfill the following objectives:

  • To avoid deduction of TDS by banks. Banks deduct TDS, if the interest on the fixed deposit exceed a sum of Rs 10,000 in a given financial year.
  • For premature withdrawal (before five years) of funds from EPF, subject to the condition that the balance in the particular fund is above Rs 50,000.
  • To avail the benefit of post office deposits and national savings schemes.
  • To avail exemption from TDS on income from corporate banks and debentures, provided that the income generated from the same exceeds Rs 5,000.
  • To avail exemption from TDS on income from maturity proceeds arising out of life insurance policy. The assessee can claim for the same if the income from the proceeds is limited to a sum of Rs 1 lakh.
  • To avail exemption from TDS on rental income if the total rental consideration in a given year exceeds Rs 1.8 lakhs. The concerned person can make a claim against TDS if his/her total income falls below the basic exemption limit.

Filing Form 15G

Form 15G can either be submitted physically or after prior verification, through electronic means in accordance with the procedures, formats and stipulated standards. The person making the claim should ensure that Form 15G is furnished with a valid PAN, non-adherence to which will result in deduction of tax @20%. The person making the claim must specify the following particulars:

  • Name (as specified in the PAN card).
  • Previous year, for which nil deductions are claimed for.
  • Residential status.
  • Communication address.
  • Status of assessment of tax.
  • Latest assessment year for which the returns are assessed.
  • Estimated income for which declaration is being made.
  • Total estimated income for the particular financial year.
  • Details of previous declaration of Form 15G (if any), along with the aggregate income.
  • Investment details for which declaration is being filed.

You may complete the process of filing form 15G in the manner as specified below:

Step 1:- Login to the respective bank’s internet banking.

Step 2:- After logging in, select the online fixed deposits tab which will redirect you to the page which depicts your fixed deposit details.

Step 3:- You will be provided with an option to generate Form 15G and Form 15H, among which Form 15G must be chosen.

Step 4:- In the following page, fill the requisite details as specified in the particulars above.

Step 5:- Specify the branch details of the bank.

It is important to note that while filling the form, the taxpayer should ensure that he/she isn’t holding any liabilities and the total aggregate interest income for the particular financial year is within the basic exemption limit.

Consequences of Default

Providing incorrect information in Form 15G could result in any of the following scenarios:

  • Imprisonment for a period ranging between 6 months to 7 years for providing incorrect declaration with the objective of evading taxes which amounts to one lakh rupees.
  • For defaults other than the above-mentioned one, the assessee could be imprisoned for a period ranging between 3 months to 3 years.

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Form 15G

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