Form 15G

Form 15G or EPF Form 15G is a document people submit to ensure no TDS is deducted on the interest you earn from your EPF, RD or FD. This form can be filled out by individuals below 60 years of age and Hindu Undivided Families (HUFs). For individuals aged 60 years and above have a different form- Form 15H. 

form 15g

Benefits of Submitting Form 15G

  • To avoid deduction of TDS by banks. Banks deduct TDS, if the interest on the fixed deposit exceed a sum of Rs 10,000 in a given financial year.
  • For premature withdrawal (before five years) of funds from EPF, subject to the condition that the balance in the particular fund is above Rs 50,000.
  • To avail the benefit of post office deposits and national savings schemes.
  • To avail exemption from TDS on income from corporate banks and debentures, provided that the income generated from the same exceeds Rs 5,000.
  • To avail exemption from TDS on income from maturity proceeds arising out of life insurance policy. The assessee can claim for the same if the income from the proceeds is limited to a sum of Rs 1 lakh.
  • To avail exemption from TDS on rental income if the total rental consideration in a given year exceeds Rs 1.8 lakhs. The concerned person can make a claim against TDS if his/her total income falls below the basic exemption limit.

Is Form 15G mandatory for PF withdrawal?

Yes, Form 15G is mandatory if you don’t want TDS to be deducted from the PF withdrawal amount. Section 192A of the Finance Act 2015 states that PF withdrawal will attract TDS if the withdrawal amount is more than Rs.50,000 and your employment tenure is of less than 5 years.

Keeping these above conditions in view, these are the PF withdrawal rules that will be applicable:

  1. 10% TDS: if you submit your PAN card but fail to submit Form 15G
  2. 30% TDS: if you fail to submit both your PAN card and Form 15G
  3. No TDS if you submit Form 15G.

Eligibility for Filing Form 15G

  • It can be submitted by a person who isn’t a company or a firm, and whose age is below 60 years.
  • The person raising the claim must be an Indian resident.
  • The person raising the claim is devoid of any tax liability.
  • The total interest income of the person with respect to the particular financial year is below the basic exemption limit.

Process of filing form 15G

Step 1:- Login to the respective bank’s internet banking.

Step 2:- After logging in, select the online fixed deposits tab which will redirect you to the page which depicts your fixed deposit details.

Step 3:- You will be provided with an option to generate Form 15G and Form 15H, among which Form 15G must be chosen.

Step 4:- In the following page, fill the requisite details as specified in the particulars above.

Step 5:- Specify the branch details of the bank.

Form 15G can either be submitted physically or after prior verification, through electronic means in accordance with the procedures, formats and stipulated standards. The person making the claim should ensure that Form 15G is furnished with a valid PAN, non-adherence to which will result in deduction of tax @20%. The person making the claim must specify the following particulars:

  • Name (as specified in the PAN card).
  • Previous year, for which nil deductions are claimed for.
  • Residential status.
  • Communication address.
  • Status of assessment of tax.
  • Latest assessment year for which the returns are assessed.
  • Estimated income for which declaration is being made.
  • Total estimated income for the particular financial year.
  • Details of previous declaration of Form 15G (if any), along with the aggregate income.
  • Investment details for which declaration is being filed.

Providing incorrect information in Form 15G could result in any of the following scenarios:

  • Imprisonment for a period ranging between 6 months to 7 years for providing incorrect declaration with the objective of evading taxes which amounts to one lakh rupees.
  • For defaults other than the above-mentioned one, the assessee could be imprisoned for a period ranging between 3 months to 3 years.

FAQs

What is Form 15G?

Form 15G is a self-declaration form used by individuals to declare that their total income is below the taxable limit, and hence, no tax needs to be deducted at source (TDS) on certain incomes like interest from fixed deposits, dividends, etc.

Who can submit Form 15G?

Individuals below the age of 60 years and Hindu Undivided Families (HUFs) can submit Form 15G if their total income for the financial year is below the taxable limit.

What is the purpose of submitting Form 15G?

The purpose of submitting Form 15G is to prevent the deduction of tax at source (TDS) on certain incomes where the total income of the individual is below the taxable threshold. This helps individuals avoid the hassle of claiming a refund for excess TDS deducted.

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