Many people have been confused about how to fill form 15G and what it is; however, this confusion will now be gone because you can discover the information you need to know in this very article! In cases where an individual's interest income exceeds INR 10,000, banks deduct Tax Deducted at Source (TDS). However, if your total income falls below the taxable threshold, you can easily ask the bank to stop deducting TDS from the interest you have earned during a financial year by submitting Form 15G to them. Holding a sizable amount in one of your savings accounts will generate your interest income.
Features of Form 15G
The most prominent features of Form 15G are mentioned below:
- Form 15G is a self-declaration form used to prevent TDS deduction on a specific income where the tax assessor’s yearly income is below the exemption threshold
- The requirements of Section 197A of the Income Tax Act, 1961 states the rules for this self-declaration form
- To reduce the compliance burden and expense for both tax deductor and tax deductee, Form 15G's format underwent a significant revision in 2015
- The current Form 15G and Form 15H (the senior citizens' version of Form 15G) formats that the CBDT introduced (Central Board of Direct Taxes)
- Individuals under the age of 60 may submit Form 15G. Senior citizens are defined as people over the age of 60
- Even though Form 15H and Form 15G are remarkably similar, only senior citizens may use Form 15H
- For existing investments, this statement must be given in the first quarter of the fiscal year to get the benefit. Form 15G can be sent for new investments prior to the initial interest credit, though
Eligibility to Fill Form 15G
The following requirements must be met to be qualified to fill out form 15G:
- You must be a local resident
- Age must be under >60 years of age
- The estimated total dividend income for the financial year must be less than the basic exemption limit of Rs. 2.5 lakh
- There should be no overall expected tax liability for the annual year
Once you fit into the eligibility criteria, you must then visit a branch or obtain this form from the website of the relevant bank. Applying for this form requires a PAN. Since Form 15G is only valid for one fiscal year, it must be sent annually. To prevent any bank deductions, it is advised that you submit Form 15G at the start of the fiscal year. And that is the answer to the question how to fill form 15G.
Where To Find Form 15G?
It is crucial to understand various income tax forms for clarity and 15G is one of them. And it is common to introspect about where one would find it. There is nowhere you must wander to find form 15G. It is found at the comfort of your mobile banking app and normal internet banking. As a matter of fact, you can access the form directly via this link. The process of filling it is also not very exhausting as well.
Components of Form 15G
To reach a better sense of clarity on Form 15G, we have supplied information on the various parts of it as you read on. Essentially, the form is divided into Part A and Part B, respectively.
Part A of the form covers:
- Name and PAN card details
- Information on the financial year
- Address and contact details
- Information about income, such as the type of income and the tax code section under which it is deductible
- Declaration on the accuracy of the information you have provided*
*Keep in mind that consequences shall be faced if you claim a false declaration
On the other hand, Part B comprises:
- Name of the person who owes taxes
- Details of PAN and TAN
- The Aadhar number
- Address and contact details
- Paid income amount
The Bottom Line
So, that was all about Form 15G and the various components it revolves around. Don’t miss out when it comes to filling the form at the earliest as it does genuinely help in saving you from TDS deductions.