Form 15G is a statement to request the bank or payer not to deduct any TDS from the interest earned. There are several requirements for using Form 15G, which we shall see in a moment. However, a taxpayer is only allowed to avail of this provision if his or her total interest income is below the stated taxable limit. As you read more of this article, you will come to know more about Form 15. If you have a certain income in a financial year, it will be subject to income tax as stated under the Income Tax Act of 1961.
This Act plays an important role in giving some assistance on tax liability. For instance, if you earn less than INR 2.5 lakhs, which is the complete taxable income, you are not required to pay any tax for it. But if your total taxable income exceeds INR 2.5 lakhs, but is lower than INR 5 lakhs, you can ask for a tax rebate to lower your tax liability. Moreover, some incomes are also categorized as tax-exempt earnings by the Income Tax Act of 1961.
Again, if you have sources from which you can earn interests, they may be fixed deposits, shares, and so on, the financial institutions or payer can subtract the TDS, before returning the sum left after deduction. So if your earnings are not taxable, make the best use of Form 15G to get rid of TDS deduction during your income.
Requirements For Filling Up Form 15G
Here are some eligibility parameters that have to be met before an individual can fill up Form 15G —
- You have to be an Indian resident,
- Your age should not be beyond sixty years,
- You should have zero tax liability,
- Your complete interest earnings should be lower than the threshold limit set by the department for the tax slab. For instance, the total interest income should not exceed INR 2.5 lakhs, which is considered as the threshold limit for the financial year of 2021-22.
Why Should You Fill Form 15G?
Form 15G comes with some benefits. Filling it up will help you with several things which are listed below —
- After the submission of your declaration, no TDS will be deducted by any bank or payer. Banks are free to take away the TDS if the interest income is more than a fixed sum in a particular financial year,
- In case you are considering premature withdrawal of your funds from EPF, you are eligible for it. But this is only possible when the total sum in that fund exceeds fifty thousand rupees.
- You also get the advantage of exemption from TDS on earnings from maturity proceeds that come from life insurance policies. You can get the whole sum if the income is lower than Rs. 1 lakh.
- You can enjoy an upper hand at the national savings plans and post office deposits.
- You get relief from TDS on rental earnings if the total annual rental income is more than Rs 1.8 lakhs. An individual can make a claim against TDS when the whole income comes under the normal exemption limit.
- You can obtain an exemption from TDS on earnings from corporate banks when the amount does not exceed rupees five thousand.
Where Will You Get Form 15G?
Obtaining the form is easy. You can get Form 15G from several places, some of which are listed below —
- From the branch of your bank,
- From your bank’s official website,
- From the official site of EPFO,
- From the official site of the Income Tax Department.
Submit your Form 15G when you are eligible to do so. It may not get accepted from the bank if submitted without checking. Moreover, submitting it at the wrong time or without checking properly can cause you trouble for giving the wrong declaration. Keep in mind that the form is valid just for a year. For claiming TDS exemption for every financial year, you have to submit the form every year, before the financial term ends. Avail of all the benefits by quickly filling up Form 15G!