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:
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.
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:
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:
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.
Once you have acquired Form 15G, you can start by filling out the different sections:
*You need a valid PAN card under your name to fill form 15G. Without this, your form would be considered invalid.
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:
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.
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,
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:
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.
