Form 15G: How to Fill Form 15G in India
More than Rs.5.65 crore worth of income tax returns were filed for the assessment fiscal year of 2019-20 within 31st August.
If you earn interest on several saving schemes like fixed deposit, National savings scheme, Provident fund, etc. you should know that such income is also taxable if the total annual income is above a certain threshold. For such income, Tax is deducted at the source by the financial institutions.
However, know that financers will automatically deduct the tax from your investment accounts. If your income is below the threshold, you can claim exemptions against the automatic tax deductions with Form 15G.
What is 15G?
Form 15G is a self-declaration form that needs to be submitted by the individuals who hold savings instruments like recurring or fixed deposits. Financial companies like Bajaj Finance who provide these investment avenues and are entitled to deduct TDS from the account holders after a specific limit of interest income. According to the rules of income tax, the TDS limit is increased to Rs.40,000 from Rs.10,000 from the financial year of 2019-20. You can use FD calculator to calculate the returns generated and from thereon, whether the taxes are applicable.
Step by step instruction to fill up 15G
There are 19 sections you need to fill out. You can submit it online and offline. Following are the details –
- Name of declarant means your name as written in the PAN card.
- PAN card details.
- Status by specifying whether you are an Individual or an HUF entity.
- Previous year means the financial year for which you are making form 15G declaration.
- Residential status to notify if you are a resident Indian or NRI.
- Flat/Door/Block No of your present address.
- Premises name of your resident.
- Street/ Road/Lane name from where you belong.
- State name.
- PIN code.
- Email address.
- Contact number details.
- a) Whether you have filed IT returns in the previous 6 years.
- b) If yes, you need to mention your latest tax assessment year.
- Estimated interest income on this specific investment for which you are making this declaration. With the help of an FD calculator, you can calculate the amount.
- Total estimated income of the previous year including the previous declaration.
- Details of your total 15G submission other than this form – number of 15G and entire income that requires this declaration in the assessing financial year.
- Details of this concerned investment such as ID number, Sl. No. income amount, section of the concerned tax, nature of your income.
You can download Form 15G From the website of the Income Tax Department. It is also made available by most financial institutions. It is vital to know the benefits of 15G for fixed deposit.
You can only submit 15G on meeting of the following criteria –
- You must be a person or an individual. A firm or institution is not eligible to fill up this form.
- During the assessment financial year, you have to be an Indian resident.
- You must be under 60 years of age.
- After calculation your entire taxable income, tax liability needs to be zero for the applicable financial year.
- The total interest earned by you for an assessment year must not exceed the elemental exemption limit.
Importance of 15G submission
As a tax-paying citizen, you must know the importance of Form 15G. If you don’t submit 15G with the financier from whom you have availed an investment scheme, TDS will be exacted by default. Use an FD calculator to check your interest income from the investment account. Make sure you consider income from other accounts as well. If your total income is under Rs.40,000 for a financial year, you should submit 15G at each of the financial institutions where you hold the investment account to avoid automatic TDS.
Also, you need to how the interest earned on fixed deposit is taxed. Now, here are the steps that you should take –
- If the financial institutions have already deducted TDS from you, they can’t refund you the amount. Because they have already deposited it with the Department of Income Tax on compulsion. Therefore, the only way is to file ITR and claim a refund. And on verification of your details, your refund will be processed only by the Income Tax Department.
- Or, you can submit this form immediately to avoid any further TDS deduction.
Lastly, form 15G is to provide your tax exemption after a certain limit of interest income from your investments. Hence, to avoid TDS deduction, submit it on time. Also, keep the eligibility criteria in your mind while submitting it.
According to the Income Tax Act, all Indian citizens are bound to pay income tax. Tax is even levied on your interest income from fixed deposits and similar other investment avenues as well. If your interest income on these savings instruments are more than Rs.40,000, financial organisations are authorised for tax deduction at the source, that is called TDS.
The exemption limit was Rs.10,000 till 2018-19 financial year, but it increased to Rs.40,000 with effected from FY 2019-20. Form 15G is a self-declaration form to request your financer no to exact TDS.
You can submit it both in online and offline. You have to provide your name, PAN details, Status, financial year, residential status, address details, email ID, contact number, details about your tax assessment year, details about your other 15G form submission, concerned income details, total income details, and details of your investment for assessment.
From the Income Tax Department website and also from your financial institution’s website you can download this form. If you don’t submit it on time, TDS will be exacted from your account. Then, you have to claim a refund from the Department of Income Tax by filling ITR and also you need to fill 15G form as soon as possible so that no further TDS can be exacted.