F
Form 15G
What Is Form 15G?
Form 15G is a self-declaration form submitted by individuals to request non-deduction of TDS (Tax Deducted at Source) on certain incomes when the total income of the individual is below the taxable limit. This means TDS cannot be deducted from interest or any other qualifying income.
By submitting Form 15G, eligible persons can ensure they receive their entire income without deduction, eliminating the need to claim refunds later when filing their Income Tax Return (ITR).
Who Can Submit Form 15G?
To be eligible to submit Form 15G, the individual must meet all of the following conditions:
- Resident Indian and below 60 years of age (senior citizens use Form 15H instead)
- Total taxable income is lower than the basic exemption limit as per the applicable financial year
- The income on which TDS would normally apply (such as interest from fixed deposits or recurring deposits) does not exceed the basic exemption limit
This form is generally used by:
- Salaried people having low or no taxable income
- People earning interest from banks
- Housewives or freelancers having low incomes
- People withdrawing money from EPF before five years of continuous employment
When Is Form 15G Commonly Used?
- Interest income from FDs, savings accounts, or recurring deposits
- Withdrawing from EPF before completing 5 years of service
- Interest income from corporate bonds or debentures
- TDS on income from post office deposits
- Rental income, in rare cases where TDS is applicable and the income is below the threshold
What Details Are Required in Form 15G?
The form typically requires:
- Name and PAN of the individual
- Residential status or address proof
- Previous year (the financial year for which Form 15G is filed)
- Estimated income on which the declaration has been made
- Total estimated income for the financial year
- Details of income for which Form 15G has been submitted earlier (if any)
- Declaration confirming that tax on total income is nil
- Signature of the declarant
PAN is mandatory to submit Form 15G. Without it, TDS will be deducted at a higher rate of 20%.
How and Where to Submit Form 15G?
Form 15G can be submitted:
- Online through the internet banking portals of most banks
- Offline by physically submitting it at the bank or institution
- To the EPFO when withdrawing PF before 5 years
- At any institution where TDS is likely to be deducted unnecessarily
It must be submitted at the start of the financial year or before the interest payout date to avoid TDS.
How Does TankhaPay Help Employees and Businesses?
Platforms like TankhaPay help businesses and employees streamline payroll, statutory compliance, tax documentation, and workforce management processes.
Organised payroll and tax details can assist employees to streamline their financial documents and make managing declarations regarding income and taxes much easier. Organised payroll compliance also benefits employers by making employee record-keeping easier and increasing overall compliance accuracy.
As payroll and compliance regulations continue evolving, automated HR and payroll platforms help organisations manage employee financial records more efficiently.
FAQs
What is the purpose of Form 15G?
Form 15G is submitted to request non-deduction of TDS on eligible income when the individual's total taxable income is below the exemption limit.
Who cannot submit Form 15G?
Non-residents, companies, and individuals whose taxable income exceeds the exemption limit cannot submit Form 15G. Senior citizens must use Form 15H instead.
Is PAN mandatory for Form 15G?
Yes, PAN is compulsory while submitting Form 15G. Without providing a PAN number, TDS may be deducted at a higher rate.
Are salaried employees eligible to file Form 15G?
Yes, if the income of the salaried employee is less than the threshold limit, they can fill Form 15G provided that they have an interest income.
What happens if Form 15G is not submitted?
If the individual has not filed Form 15G in time, then the bank can deduct TDS from the interest earned as per relevant tax law.
What is the difference between Form 15G and 15H?
The main distinction is that Form 15G is for individuals who are under 60 years of age, whereas Form 15H is for senior citizens above 60 years of age.
