Understanding Form 15G: A Complete Guide
Form 15G is a form that can be submitted by individuals to banks and financial institutions to avoid the deduction of Tax Deducted at Source (TDS) on certain types of income. Let’s take a closer look at Form 15G and understand its significance.
What is Form 15G and when should it be submitted?
Contents
- 1 What is Form 15G and when should it be submitted?
- 1.1 Eligibility to submit Form 15G
- 1.2 How to fill Form 15G
- 1.3 Consequences of submitting a false Form 15G
- 1.4 Validity of Form 15G
- 1.5 How to submit Form 15G
- 1.6 When is Form 15G not applicable?
- 1.7 What is the difference between Form 15G and Form 15H?
- 1.8 Why is Form 15G important?
- 1.9 Q.1) Who can submit Form 15G?
- 1.10 Q.2) Can senior citizens submit Form 15G?
- 1.11 Q.3) Is Form 15G applicable for all types of income?
- 1.12 Q.4) Can I submit Form 15G online?
- 1.13 Q.5) What is the penalty for submitting a false Form 15G?
- 1.14 Q.6) How long is Form 15G valid for?
- 1.15 Q.7) Is Form 15G mandatory to submit?
- 1.16 Related
Form 15G is a declaration form that an individual can submit to the bank or financial institution if their total taxable income is below the taxable limit. The form is used to avoid the deduction of TDS on interest earned from fixed deposits, recurring deposits, and other investments. It can only be submitted by individuals and HUF (Hindu Undivided Family) who are residents of India.
Eligibility to submit Form 15G
To submit Form 15G, an individual must satisfy the following conditions:
- The individual should be a resident of India.
- The individual should be less than 60 years of age.
- The total interest income for the financial year should be below the taxable limit, which is Rs. 2.5 lakh for individuals below the age of 60.
- The individual should not have any outstanding tax dues or pending assessments.
How to fill Form 15G
Form 15G can be easily filled and submitted online or offline. The following details need to be filled in the form:
- Personal details like name, address, and PAN (Permanent Account Number).
- Details of the investment on which TDS needs to be avoided.
- Details of previous financial years’ income and TDS deducted.
- Declaration that the individual’s income for the current financial year is below the taxable limit.
Consequences of submitting a false Form 15G
Submitting a false Form 15G can lead to serious consequences, including penalty and prosecution. Therefore, it is important to ensure that the details mentioned in the form are accurate and true.
Validity of Form 15G
Form 15G is valid for one financial year. Therefore, it needs to be submitted every year to avoid the deduction of TDS on interest income.
How to submit Form 15G
Form 15G can be submitted to the bank or financial institution either offline or online. To submit it offline, individuals need to obtain the form from the bank, fill it out, and submit it physically at the bank. Alternatively, many banks allow individuals to submit Form 15G online through their net banking portal. The process for online submission may differ from bank to bank, and individuals are advised to follow the guidelines provided by the bank.
When is Form 15G not applicable?
Form 15G is not applicable for individuals whose total taxable income exceeds the taxable limit, which is currently Rs. 2.5 lakh for individuals below the age of 60. It is also not applicable for senior citizens and super senior citizens, who have a higher taxable limit of Rs. 3 lakh and Rs. 5 lakh, respectively. In addition, Form 15G cannot be submitted for income from sources other than interest, such as salary or capital gains.
What is the difference between Form 15G and Form 15H?
Form 15H is similar to Form 15G, but it is applicable only to senior citizens and super senior citizens. Like Form 15G, it is a declaration form that can be submitted to banks and financial institutions to avoid the deduction of TDS on interest income. The eligibility criteria and other details of Form 15H are similar to that of Form 15G, with the only difference being the age of the individual.
Why is Form 15G important?
Form 15G is important for individuals who have low or no taxable income and want to avoid the deduction of TDS on interest income. By submitting Form 15G, individuals can ensure that they receive the full interest income from their investments without any deduction of tax. This can help them maximize their earnings and improve their financial planning.
Conclusion
Form 15G is a simple and useful form that can help individuals avoid the deduction of TDS on interest income. It is important to ensure that the form is filled correctly and submitted within the deadline to avoid any legal complications. By using Form 15G and other tax-saving instruments, individuals can improve their financial planning and maximize their earnings.
Frequently Asked Questions -FAQs on Form 15G
Q.1) Who can submit Form 15G?
Form 15G can be submitted by individual residents of India and HUF who are below 60 years of age and have a total taxable income below the taxable limit.
Q.2) Can senior citizens submit Form 15G?
No, senior citizens cannot submit Form 15G. They are required to submit Form 15H.
Q.3) Is Form 15G applicable for all types of income?
No, Form 15G is applicable only for income from interest on fixed deposits, recurring deposits, and other investments. It cannot be submitted for income from salary, capital gains, or any other sources.
Q.4) Can I submit Form 15G online?
Yes, many banks allow individuals to submit Form 15G online through their net banking portal.
Q.5) What is the penalty for submitting a false Form 15G?
Submitting a false Form 15G can lead to serious consequences, including penalty and prosecution.
Q.6) How long is Form 15G valid for?
Form 15G is valid for one financial year. Therefore, it needs to be submitted every year to avoid the deduction of TDS on interest income.
Q.7) Is Form 15G mandatory to submit?
No, Form 15G is not mandatory to submit. However, if you do not submit it, TDS will be deducted on the interest income, which you will have to claim back through income tax returns.
