Form 15G is a self-declaration form used to prevent the deduction of TDS (Tax Deducted at Source) on income, especially interest income if your total taxable income falls below the taxable limit. It applies to individuals and Hindu Undivided Families (HUFs) who meet specific eligibility criteria. Understanding How to Fill Form 15G correctly is crucial to ensure no errors lead to unnecessary tax deductions.
What is Form 15G?
Form 15G is a declaration form that helps individuals notify institutions like banks or financial organizations not to deduct TDS on certain types of income. This form is typically used for:
- Interest on fixed deposits
- Interest on recurring deposits
- PF withdrawals before 5 years of service
- Post Office Deposits
- Income from corporate bonds
Who Can Submit Form 15G?
Before filling out Form 15G, ensure you meet the following eligibility criteria:
- You are an individual or HUF.
- You are an Indian resident.
- Your age is below 60 years.
- Your total income is below the taxable limit, including the interest income.
- Tax liability on your total income is zero.
Importance of Form 15G
- It avoids unnecessary tax deductions on income that falls below the taxable limit.
- Prevents delays in receiving refunds that may result from excess TDS deductions.
- Enables better financial planning and liquidity management.
Step-by-Step Guide How to Fill Form 15G
Filling out Form 15G is straightforward but requires accuracy. Follow these steps:
Part 1: Details to Be Filled by the Applicant
1. Name of the Assessee (Declarant)
Enter your full name as per your PAN records.
2. PAN Number
Provide your Permanent Account Number (PAN). Ensure this is correct; an invalid PAN can render the form invalid.
3. Status
Mention your status as an Individual or HUF.
4. Financial Year
Specify the financial year for which you submit the form (e.g., FY 2023–24).
5. Residential Status
Select Resident (as this form does not apply to NRIs).
6. Address
Provide your complete address, including your PIN code.
7. Contact Information
Enter your valid mobile number and email address.
8. Estimated Total Income
Calculate and declare your estimated total income for the financial year, including the income for which Form 15G is being submitted.
9. Details of Income for Which the Declaration is Filed
Provide the nature and amount of income. For example, if you are submitting the form for bank fixed deposit interest, include the details of the bank.
10. Previous Year Tax Deducted (If Applicable)
If TDS was deducted earlier, mention the details here.
Part 2: Verification by the Deductor
This section is filled by the entity receiving the declaration, such as a bank or employer. They will:
- Acknowledge receipt of Form 15G.
- Confirm the correctness of the details provided.
How to Fill Form 15G for PF Withdrawal
PF (Provident Fund) withdrawals before five years of continuous service attract TDS if the withdrawal exceeds ₹50,000. Submitting Form 15G can prevent TDS if you meet the criteria. Here’s how to do it:
Eligibility for Using How to Fill Form 15G for PF Withdrawal
- Your total income (including the PF withdrawal) is below the taxable limit.
- You have completed less than 5 years of continuous service.
- Tax liability on your total income is zero.
Steps to Submit Form 15G for PF Withdrawal
- Download the Form
Obtain Form 15G from the EPFO portal or any authorized source. - Fill in the Details
Complete Part 1 of Form 15G as outlined above. Provide accurate information regarding your employment and withdrawal amount. - Submit to EPFO
Upload the form via the EPFO member portal or submit it physically at the nearest EPFO office. - Verification by EPFO
The EPFO verifies the information and processes your withdrawal without TDS deduction.
Common Mistakes to Avoid While Filling Form 15G
- Incorrect PAN Number: Always double-check your PAN number.
- Inaccurate Income Details: Calculate your total income correctly.
- Invalid Residential Status: Ensure you declare your residential status as “Resident.”
- Non-Submission to the Correct Authority: Submit the form to the respective institution for timely processing.
Benefits of Submitting Form 15G
- Saves time by avoiding refund claims for excess TDS.
- No financial strain due to premature tax deductions.
- Facilitates hassle-free financial transactions.
Frequently Asked Questions
1. Is Form 15G Mandatory for PF Withdrawal?
No, it’s optional. However, submitting it prevents TDS if your income is below the taxable limit.
2. Can NRIs Submit Form 15G?
No, only residents of India can submit Form 15G.
3. How Often Should Form 15G Be Submitted?
You must submit the form at the beginning of each financial year or before every new transaction requiring it.
Filling Form 15G correctly is critical to avoid unnecessary tax deductions. Follow the steps above and submit the form accurately to the respective institutions to ensure a smooth and hassle-free experience.
