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How to fill Form 15G? (2020)

The interest that an individual earns on certain saving schemes like PF/Provident Fund, Post Office Savings Schemes and the National Service Scheme is entirely taxable.

The tax is deducted from the earned interest as TDS. However, the income tax department has a threshold in place to calculate taxable interest earned yearly. If an individual does not fall under this tax slab, he/ she is exempted from paying taxes.

Currently, the minimum taxable amount is INR 40,000, which is an increase from the slab of INR 10,000 that existed before the financial year of 2019-20.

If your total income falls under this set taxable limit, you may submit the 15G form to the bank and request them not to deduct TDS on interest.

Here’s a guide on the 15G form, including the prerequisites and procedure of filling it:

How to fill Form 15G?

What is the 15G form?

The banks must charge TDS if the interest earned on the amount in your account is more than INR 40,000 in a given financial year. Those who do not fall into this category use form 15G.

The purpose of this form is to prevent the annual deduction of TDS from your income. Anyone under the age of sixty can fill the form, which is only valid for a year. It's wise to submit it at the beginning of the year to avoid any deductions. Generally, the last date for the form 15G submission is 31st March each year.

What are the prerequisites for filing Form 15G?

Check out the eligibility criteria stated below to know whether you are eligible to fill Form 15G.

  • You are an individual, trust, or HUF
  • You are an assessor other than a firm or a company
  • Your age is below 60 years
  • There is no tax calculated on your total income
  • The total interest earned in a given financial year is below the exemption limit set for that year (It is INR 2,50,000 for FY 2020-21)

How to obtain form 15G?

The form is available for download on the EPFO portal. Additionally, most popular banks in India also offer the facility to fill this form online on their respective websites. It's also accessible on the official Income Tax Department website.

Different purposes for filling form 15G

Although form 15G is submitted to a bank to avoid TDS deductions, there are a few other purposes for filling out this form:

  • EPF withdrawal TDS: This is the most common purpose for filling out Form 15G; it’s explained in detail later in this article
  • TDS on corporate bond incomes: If an individual’s income from corporate bonds exceeds INR 5,000, it is tax-deductible. Form 15G can be submitted to avoid TDS on amounts lesser than INR 5,000
  • TDS on post office deposits: Digitized post offices also deduct TDS; however, this can be avoided by submitting Form 15G, if applicable
Income Tax Rules
  • Insurance commission TDS: If insurance commission exceeds INR 15,000 in a given financial year, it accounts for TDS. However, if the insurance agent’s tax on total income is zero, Form 15G helps evade TDS deduction.
  • TDS on rent: If rent earned by an individual exceeds INR 2,40,000 yearly, it falls under the tax-deductible slab. In case of the total tax on income being nil, Form 15G could be submitted.

Withdrawal rules of TDS on EPF

There are certain rules related to TDS on EPF withdrawals. According to the Finance Act 2015, section 192A, if the total withdrawal amount is more than INR 50,000 for an individual who has worked for five years or less, EPF withdrawal would mean the TDS needs to be paid. Those above the age of 60 can fill form 15H instead of form 15G.

When will the TDS have to be paid?

If an individual with less than 5 working years wishes to obtain their EPF amount, which totals to more than INR 50,000:

  • 10% TDS would be deducted if the PAN card is submitted, and Form 15G isn't
  • 34.608% TDS will be deducted if both the PAN card and Form 15G aren't submitted

How to fill Form 15G?

What is the procedure for filling form 15G for PF withdrawal?

Now that you know the basic rules for filling form 15G for EPF withdrawals, let’s understand the procedure.

  • Key in your login details on EPFO UAN Unified Portal
  • Select the “Online Services” option and claim form 19, 31, and 10C
  • Complete the verification process by entering your bank account number’s last four digits
  • Below the section “I want to apply for,” select “Upload form 15G.”

Once you have acquired Form 15G, you can start by filling out the different sections:

  • Enter your name as given in your PAN card.
  • Fill in your PAN number.

*You need a valid PAN card under your name to fill form 15G. Without this, your form would be considered invalid.

  • Select the income tax status that applies to you, HUF(Hindu Undivided Family)/Individual/AOP
  • Select the previous year here as the financial year when you don’t want TDS deduction
  • Mention your current address with pin code
  • Provide valid contact details, including email address and a phone number
  • Tick “Yes” if, in the previous years, you were assessed to tax under the provisions of Income Tax Act 1961
  • Enter the latest year during which your IT returns were assessed
  • Enter the estimated income
  • Enter your total estimated revenue for the financial year
  • If you have previously filled Form 15G in the same year, you need to mention the form’s details.
  • Fill in the investment details for which you are claiming the non-deduction of TDS.

On completion, make sure to review the form before submitting it.

How to fill Form 15G online without printer

How to fill form 15G online?

Most of the popular banks in India allow users to fill Form 15G online; here’s the procedure for accessing it on their websites:

  • On your bank’s internet banking portal, log in using your user ID and password
  • Click on “Online Fixed Deposits” which will display the details of your fixed deposit
  • Click on the link for generating Form 15G
  • Start filling out all the details once the form is generated.
  • Ensure accuracy and submit the form

How to submit form 15G?

CBDT or Central Board of Direct Taxes, has completely digitized the process of form 15G submission. The following steps are common for submitting form 15G for all the major Indian banks.

  • You need to fill the form 15G online and submit it online as well. As per CBDT, your bank will assign a unique identification number or UIN whenever an individual makes a self-declaration
  • The deductor will furnish all the details of self-declaration and the given UIN to the IT department in the form of a quarterly TDS statement

Be mindful of the fact that Form 15G is submitted only for one financial year. However, your bank would retain all such forms for a minimum of 7 years from the time of submission.

When will TDS not have to be paid?

An individual need not pay TDS if,

  • The EPF is transferred to another account.
  • The individual’s service was terminated due to their employer’s business dissolution, ill health, project completion, or any other cause beyond the control of the employee.
  • If the individual withdrew the EPF amount after 5 years of total service.
  • If an amount more than or equal to INR 50,000 is withdrawn, Form 15G was submitted even if the employee has less than 5 years of service.

What to do if you have forgotten to submit Form 15G?

If you have forgotten to submit form 15G on time, fret not, you are not alone! In such a situation, you can do the following:

  • File income tax returns to claim TDS refund: The only way you can claim the TDS deducted would be filing the IT returns (ITR). Your bank would not be able to refund the TDS since they have already submitted the amount. However, the IT department will refund the excess TDS deductions once you file for an IT return.
  • Submit form 15G as soon as possible: Most of the banks deduct TDS quarterly. If you've forgotten to submit Form 15G on time, submit it immediately to avoid TDS deductions for the rest of the year.

Frequently Asked Questions

Here are a few common doubts which several individuals have while filling out the form 15G form.

1. Can form 15G be filled by HUFs?

Yes, form 15G can be filled by HUFs if they meet the other eligibility criteria listed above.

2. Do I have to submit the form 15G directly to the Income Tax department?

No, you do not have to submit Form 15G to the Income Tax department; you can submit it online through your bank’s site or any other way stated by your deductor.

3. If I fill form 15G, will that mean that interest income is non-taxable?

If the tax on your total income is nil, you can fill form 15G to claim the non-deduction of TDS on your interest income.

4. I’m an NRI, can I submit form 15G?

No, form 15G can only be submitted by residents of India and not NRIs.

5. What if I have submitted form 15G but have taxable income?

If this happens, you need to immediately inform your bank or deductor that your taxable income is not nil. Your bank would then make the necessary changes to the TDS deductions. The entire interest income in your applicable pay tax and tax return needs to be mentioned. Form 15G can be immensely useful for reducing the burden of tax deductions in the form of TDS every year. However, if any of the declarations and claims you make in this form are false to avoid paying the tax money, you would be liable to pay a fine or face imprisonment (3 months to 7 years), according to the Income Tax Act, 1961, section 277. This guide will help you in filling out form 15G in an easy and hassle-free way. Follow each step with caution and make sure you go through the eligibility criteria before filling form 15G for claiming the non-deduction of TDS.

Piyush

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About the Author

Piyush Kashyap is a Ph.D student at Sant Longowal Institute of Engineering and Technology, Sangrur. He is a budding editor/ writer and has been working as a part-time reviewer for online content. He loves to read tech-based articles and has a knack for reviewing such articles He likes to stay updated about the latest trends in technology. He has also been working as a reviewer for many scientific journals. He also writes articles based on science. Know More About Piyush


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