Form 15G or 15H has to be submitted by fixed deposit holders at the start of a financial year to the relevant financial entity like a bank. This is done to avoid on the interest income earned.
Who can submit form 15G?
Banks usually deduct TDS from the interest income on FDs if it crosses the threshold limit.
Form 15G is submitted by a resident individual whose age is below 60 years of age during the year as mentioned in the form.
Form 15H is submitted by a resident individual whose age is 60 years and above, that is, senior citizens and super senior citizens.
Conditions to fulfill before submitting Form 15G
One must fulfill the following eligibility criteria to submit Form 15G:
You are an individual or a person (other than a company or a firm).
You must be a resident Indian for the applicable FY
Your age should not be more than 60 years
Tax liability calculated on the total taxable income for the FY is zero
Your total interest income for the financial year is less than the basic exemption limit.
Instructions to fill out Form 15G
Form 15G has two sections. First part is for the individual who wants to claim no-deduction of TDS on certain incomes. The following are the key details you need to fill out in the first portion of Form 15G:
Name as mentioned on your PAN Card.
Permanent Account Number. Valid PAN card is mandatory to file Form 15G. If you fail to furnish valid PAN details, your declaration will be treated as invalid.
Declaration in Form 15G can be furnished by an individual but not by a firm or company.
The previous year has to be selected as the financial year for which you are claiming non-deduction of TDS.
Mention your residential status as a resident individual because NRI are not allowed to submit Form 15G.
Mention your communication address correctly along with PIN code.
Provide valid email ID and contact number for further communications.
Tick mark ‘’Yes’’, if you were assessed to tax under the provisions of Income Tax Act, 1961 for any of the previous assessment years.
Mention the latest assessment year for which your returns were assessed.
Estimated income for which you are making declaration needs to be mentioned
Total estimated income for the financial year (which includes all the income)
If you have already filed Form 15G anytime during the financial year, then the details of the previous declaration along with an aggregate amount of income need to be mentioned in the present declaration.
Last part of section 1 talks about the investment details for which you are filing declaration. You need to furnish the investment account number (term deposit/ life insurance policy number/ employee code etc)
After filling the entire field, re-check all the details to ensure there is no error. The second part of Form 15G is to be filled out by the deductor i.e. the person who is going to deposit the tax deducted at source to the government on behalf of the tax assessee.
What if I forget to submit Form 15G?
In case you forget to submit Form 15G on time and TDS has already been deducted, here’s what you can do:
Option 1: Claim your TDS refund by filing income tax return.
Option 2: Immediately submit Form 15G to avoid further deductions for the current financial year.
Penalty for Submitting False Declaration using Form 15G
Providing a false declaration in Form 15G just to avoid TDS can lead to fine and even imprisonment under Section 277 of the Income Tax Act, 1961. The following are the details of punishments u/s 277 of the IT Act, 1961.
Imprisonment for a period of 6 months to 7 years if the wrong declaration was provided to evade tax of more than Rs. 1 lakh
For all other cases, imprisonment between 3 months to 3 years.
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