Everyone spends a major portion of their life working so they can make a decent living along with investing in savings to safeguard their futures. Banks play a rather pivotal role in the economy by offering good interest rates for accounts in which the money is held. However, the government levies a tax in the form of TDS (tax deducted at source) which is subtracted from several holdings and investments one might have. To be able to hold on to this hard-earned money, an official document called Form 15G needs to be filled out. For those aged lesser than 60 years, filling this form allows TDS exemptions which would otherwise be levied on any earnings of interest that amount to Rs. 40,000/- or more.
Key Features of Form 15G
Form 15G submissionis beneficial to everyone who is looking to save their investment interest amounts and the key features of the same are as follows.
- It is a self-declaration form that needs to be filled out to avoid tax deductions by the banks.
- Senior citizens do not qualify for this particular exemption.
- One will have to submit this form in the first quarter of the financial year in case of any current undertakings.
- You need to be a resident Indian to fill this form.
- You need to be an individual and not a company to qualify for this exemption.
- Tax computation on your total income is nil.
- Any rules and regulations for Form 15G are declared by Section 197A provision of the Income Tax Act, 1961
- The Central Board of Direct Taxes (CBDT) is the one that has structured this document.
- For those aged 60 years and above, Form 15H is the authorized document to be filled.
Difference between Form 15G and Form 15H
There is not much of a difference between the two but often it is easy to get confused during the process of online submission of Form 15G so let us have a look at the two;
| Form 15G | Form 15H |
| This form is only applicable to those who are lesser than 60 years of age | Taxpayers over the age of 60 years can avail this form for their exemptions |
| Individual taxpayers as well as HUF can make a claim via this form | This is only applicable for individual taxpayers |
| If the annual income is lesser than the basic exemption limit, Form 15G can be proposed by individual taxpayers and HUF | No specific income is pertinent when filling this form as it is applicable to individuals of all incomes |
How to Download Form 15G
It is a fairly easy procedure to download the Form 15G online. You can get it for free on all the major bank websites as well as on the EPFO portal. The Income Tax department website will also have this form so you can get it from there as well. Not only the download, but it is also a simple procedure to submit the same online. Quick steps to download Form 15G are;
- Visit the bank website and enter your username and password to login via net banking
- There will be an ‘online fixed deposits’ section which will direct you to the details of your deposits.
- Generate Form 15G from there and fill the necessary details.
- Submit the duly completed form directly online itself.
How to Fill Form 15G
It is as simple as following instructions when filling the Form 15G submission document. Once you have downloaded the relevant form, you can follow the simple steps mentioned below.
- Fill in the different fields as marked on the form 15G.
- Attach your PAN card along with the declaration.
- Submit the form directly online or to your financial advisor.
The following mentioned fields that need to be filled will be visible on Form 15G:
1. Name of the declarant
2. PAN card of the declarant
3. Income Status
4. Previous Year Claim
5. Residential Status
6. Address
7. Email
8. Phone number
9. If assessed under the Income Tax Act
10. Latest assessment of the year in which it was made.
11. Estimated Income for which this declaration is being made.
12. Details of Income for which this declaration is being made.
A few points one must consider when embarking on the procedure of online submission of Form 15G are as stated below:
- There are two types of components in this form, of which the first part states that the individual should make a no-deductions claim on TDS of specifically mentioned incomes while the second component is to be filled by the person who claims on behalf of the individual.
- Proper name along with address and additionally required details must be submitted.
- In case the form has been filled out prior, details of that should be included.
Eligibility for Submitting Form 15G
This form is available to all Indian residents under the age of 60 years; however, there are a few eligibility criteria that must be adhered to as mentioned below
- The person submitting the form should be an individual Indian citizen residing in India below the age of 60 years
- Total earnings from the interest should not exceed the stipulated exemption limit
- Gross tax liability of the submitting individual after exemptions should not be zero
Form 15G is an immensely helpful document which takes away the burden of the heavily laid taxes deducted at source (TDS) as levied by the government. It is made easy for individuals to download, fill as well as submit in accordance. It is imperative to note that in case someone has filed a false claim on the same and is found guilty of tax evasion, it can lead to a fine or even imprisonment in some cases. Overall, it is a great benefit offered to investors who can save tax payments and enjoy the income made on their investments.