Things to know about Form 15G | Fusion - WeRIndia

Things to know about Form 15G

Things to know about Form 15G

As per the Income Tax Act, tax has to be deducted at source (TDS) if the income exceeds the prescribed limits for that category.

For instance, if you earn more than ₹40,000 as interest on fixed deposits or recurring deposits in a financial year, then banks will deduct TDS on that interest income. If you don’t want that thing to happen, you have to submit Form 15G to banks. It is a declaration form that can be given by a taxpayer that the assessee’s income for the financial year is under the exempted limit.

The form can be downloaded from the website of any of the banks and the income tax department.

Here are the things to know about Form 15G:

  • Form 15G is submitted by any individual below the age of 60 years. It can also be submitted by Hindu Undivided Families (HUFs).
  • The declaration form should be submitted in the first quarter of the financial year for the existing investments. If you are making new investments, then you have to submit it before banks credit interest to your account for the first time.
  • Form 15G can be submitted for the following: Interest income from bank and post office deposits, Employee’s provident fund withdrawal, income from corporate bonds and debentures, proceeds from a life insurance policy and rental income. By submitting this form, you can reduce the TDS burden on the above incomes.
  • While filling the form, make sure that your name is the same as on the PAN card. Mention your PAN details. Also, specify the financial year for which you are making the declaration. Only resident Indians are allowed to submit Form 15G. Hence, you should mention ‘resident individual’ under the column ‘Residential Status’.
  • Provide communication address, email ID and mobile number. Mention the total estimated income for the financial year. If you have filed Form 15G anytime in the past during the financial year, you have to provide those details.
  • In the last part, you have to provide details related to the investment for which you are filing the declaration. Here you have to provide the account number of term deposit, employee code, life insurance policy number etc.

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