What Is Form 15G In Income Tax And Who Can Submit It?
Form 15G and Form 15H are important tax-related documents required to avoid TDS getting deducted from interest earnings.
Banks have to mandatorily deduct TDS (tax deducted at source) if someone’s interest income crosses more than ₹40,000 per year. This applies to all individuals till the age of 60 years. For those above the age of 60 years, the TDS is deducted only if the interest income goes above ₹50,000. The bank calculates interest earned on all the deposits and then applies TDS accordingly. However, if your total annual income including the interest earned is below the taxable limit, then you can submit Form 15G at the bank and request them to not deduct TDS on interest earned. Senior citizens above the age of 60 years need to submit Form 15H to the bank for not deducting TDS, in case their total income is below the taxable limit. Let’s take a closer look at what Form 15G is in the Income Tax Act of 1961.
Both Form 15G and Form 15H are self-declaration forms that individuals must submit to the bank in order to avoid getting the TDS deducted from their accounts automatically on interest earned. Many banks allow customers to submit Form 15H and 15G online through their official websites. Moreover, the banks may also require you to provide your PAN details along with Form 15G. You can download Form 15 from the official website of the Income Tax Department. Form 15G and 15H are only valid for one year, so it is recommended that you submit them right at the beginning of the Financial Year, to ensure that no TDS is deducted by the banks.
Eligibility Criteria For Submitting Form 15G
The following are the basic eligibility criteria that you must meet in order to submit Form 15G:
You are an individual and not a company or a firm.
You must be a resident of India for the applicable Financial Year. A non-resident cannot submit Form 15G or Form 15H.
Your age must be below 60 years.
The total tax liability calculated on your total taxable income for the applicable Financial Year is zero.
The total interest earned is less than the basic exemption limit, i.e., less than ₹2.5 lakh.
How To Fill Form 15G?
First, you will need to download the relevant form from the Income Tax department website. These forms are also available on the websites of most banks. Then, you will need to fill out the following details accurately without making any errors:
Your name as mentioned on your PAN Card, as well as your PAN number.
You must select the previous year as the Financial Year for which you are applying for non-deduction of TDS.
You will have to mention your residential status as a resident since NRIs are not allowed to submit Form 15G or 15H.
Add your address, email and phone number to the form.
Mention details of the last year when your tax returns were assessed.
Add details regarding your estimated income for the year, for which you are filing Form 15G.
Finally, you will need to add the account details of all your bank accounts and investments that are earning interest.
Double-check that all of the details you’ve filled in are accurate.
Also Read: What Is Section 80C Under the Income Tax Act
What To Do If You Forget To Submit Form 15G?
If you indeed forget to submit Form 15G or 15H and the bank deducts TDS on interest earned, you can then claim your TDS refund by filing your income tax return. Once the bank deducts TDS, you cannot get it refunded from the bank. Hence, once your income tax return is verified, the Income Tax Department will process your TDS refund. However, you must ensure that going forward you submit your Form 15G or 15H on time to avoid the TDS getting deducted on your interest earnings.
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