What is Form 15G ?
Form 15G is a self-declaration form that individuals in India can submit to request non-deduction of Tax Deducted at Source (TDS) on certain incomes. It is primarily used by individuals whose total taxable income is below the exemption limit, ensuring that no TDS is deducted on their income from interest or other specified sources.
Purpose of Form 15G:
To avoid TDS deduction on interest income from banks, post offices, or other financial institutions.
Applicable for individuals and Hindu Undivided Families (HUFs) whose total income is below the taxable limit.
Eligibility Criteria for Filing Form 15G:
The individual must be an Indian resident.
The total taxable income for the financial year should be below the basic exemption limit.
The total interest income for the year should not exceed the applicable taxable threshold.
Common Scenarios for Using Form 15G:
Interest Income: On fixed deposits, recurring deposits, or savings accounts.
EPF Withdrawal: To avoid TDS on premature withdrawals (before 5 years of service) if the total income is below the taxable limit.
Post Office Deposits: For interest earned on schemes like the Senior Citizens' Savings Scheme (SCSS) or others.
Income from Bonds or Securities: To avoid TDS on income from bonds.
Key Details in Form 15G:
Personal Information: Name, PAN (Permanent Account Number), address, and contact details.
Income Details: Estimated total income for the financial year.
Declaration: Confirmation that the total income is below the taxable limit and no TDS should be deducted.
Submission of Form 15G:
Submit the form to the respective institution (e.g., bank or post office) where the interest income is being generated.
Can be submitted online through the institution’s portal or offline by visiting the branch.
Validity:
The form is valid for the financial year in which it is submitted. A new Form 15G must be submitted for subsequent financial years.
Penalty for False Declaration:
If an individual provides false information in Form 15G to avoid TDS, they may face penalties and legal consequences under the Income Tax Act, 1961.