Form 15G is a vital document for taxpayers in India, primarily used to prevent TDS (Tax Deducted at Source) on income. If your total income is below the taxable limit, submitting Form 15G ensures that TDS is not deducted from your interest income or other incomes specified under the Income Tax Act.
What is Form 15G?
Form 15G is a self-declaration form that individuals below the age of 60 can submit to ensure that no TDS is deducted from their income. This form is typically used to claim receipts without tax deduction if the total income is below the basic exemption limit.
Key Features of Form 15G
- Self-Declaration: Form 15G is a self-declaration form that asserts that the individual's income is below the taxable limit.
- Avoids TDS: It prevents the deduction of TDS on certain incomes like interest on securities, dividends, and EPF withdrawals.
- Eligibility: Only individuals below 60 years and HUFs (Hindu Undivided Families) are eligible to submit Form 15G.
Who is Eligible to Submit Form 15G?
To be eligible to submit Form 15G, an individual must meet the following criteria:
- Must be an Indian resident.
- Must be below 60 years of age.
- The total income must be below the taxable limit.
- The total interest income for the financial year should be within the basic exemption limit.
Steps to Fill Form 15G
Filling out Form 15G is straightforward if you follow these steps:
1. Download the Form: Obtain Form 15G from the Income Tax Department's website or your bank's website.
2. Fill in Personal Details: Enter your name, PAN number, financial year, address, and contact details.
3. Declaration Section: Declare that your total income is below the taxable limit and no TDS should be deducted.
4. Signature: Sign the form in the designated place.
5. Submit the Form: Submit the filled form to the relevant financial institution or EPF office.
Benefits of Submitting Form 15G
- No TDS Deduction: Ensures that no tax is deducted at source on your interest income.
- Increased Liquidity: Helps maintain better cash flow as no tax is deducted at source.
-Hassle-Free: Reduces the need for claiming refunds when filing your income tax returns.
Introduction to Form 15H
Form 15H is similar to Form 15G but is meant for senior citizens. It ensures that no TDS is deducted on income if the total income is below the taxable limit. Form 15H can be submitted by individuals who are 60 years or older.
Differences Between Form 15G and Form 15H
| Parameter | Form 15G | Form 15H |
| Eligibility | Individuals below 60 years and HUFs | Senior citizens (60 years or older) |
| Purpose | Prevent TDS for non-senior citizens | Prevent TDS for senior citizens |
| Taxable Limit | Below the basic exemption limit | Below the taxable limit for seniors |
Validity of Form 15G
Form 15G is valid for one financial year. It must be submitted at the beginning of each financial year to ensure no TDS is deducted for that year.
Common Mistakes to Avoid When Filling Form 15G
- Incorrect PAN: Ensure your PAN is correctly entered to avoid invalidation.
- Incomplete Form: Fill in all required fields to avoid rejection.
- Wrong Declaration: Make sure your income is indeed below the taxable limit.
Conclusion
Form 15G is a useful tool for individuals with incomes below the taxable limit to avoid unnecessary TDS deductions. By understanding the eligibility criteria and filling the form correctly, you can benefit from increased liquidity and reduced tax-related hassles. Always double-check the form for accuracy to avoid common mistakes and ensure its validity.
What is the primary purpose of Form 15G?
To prevent TDS deduction on income if the total income is below the taxable limit.
Can NRIs submit Form 15G?
No, only Indian residents are eligible to submit Form 15G.
Is Form 15G valid for multiple financial years
No, it must be submitted at the beginning of each financial year.
What happens if I don’t submit Form 15G?
TDS will be deducted at the applicable rate from your income.
Can a senior citizen submit Form 15G?
No, senior citizens must submit Form 15H instead.