What is Form 15G

  • Author :
  • TATA AIG Team
  • Published on :
  • 03/01/2024

When an individual expects that their total income for the whole financial year will be below the taxable limit, they may submit Form 15G to the deductor. After receiving the form 15G the deductor then cuts off the TDS on the specified income as mentioned by the applicant.

A TDS, also called as tax deducted at source, is a system in which tax is deducted in advance. TDS deduction is performed by the payer at the time of crediting the income to the payee, it is applicable for various types of income.

The employees who are eligible for form 15G pf claims can request the employer not to cut the TDS on their income.

Let us understand form 15G in more detail in this blog.

What is Form 15G?

The Form 15G meaning is quite simple, it is a documental declaration form under the Income Tax Act, majorly aimed at individuals below the age of 60 years. This document serves to prevent the deduction of tax at source on certain incomes.

Typically form 15G is submitted to the banks as a formal announcement, stating that their total income is below the tax limit, and the TDS is not applicable.

Process of Filling Form 15G

You can fill out your Form 15g either online or offline, though the Form 15G format is the same.

Offline Process

Following are the steps and instructions involved in filling out an offline form 15G:

Physical form - Take out the form 15G from any authorised bank or local income tax office or just take out a printout from the income tax department’s official website.

Go through the instructions -Carefully read the terms and conditions mentioned in the form, and understand if you are eligible or not.

Fill out personal details - The Form 15G will ask for your personal information including proof of address, valid PAN card number, and date of birth.

Provide income detail - Specify your estimated total income details.

Mention bank details - This step is applicable for those who are submitting their form from a bank. They must provide the necessary bank details including the branch code and account number.

Revise - Re-check all the details after filling, in case any errors occur.

Signature - Sign the declaration after ensuring that all the details provided are accurate.

Submission - Submit the completed form.

Final step - In the last step, make sure that you have received a submission acknowledgement copy.

Online Process

Now let us move on to the online steps:

Visit the official website of the Income Tax department.

Click on Form 15G download

Read the instructions carefully

Fill in the personal details asked

Specify your financial detail

Make an electronic signature

Upload the form

Form 15G Eligibility: Who Can Submit the Form 15G?

Generally, the submission of Form 15G applies to residents of India who are less than 60 years old and whose total income is below the taxable amount declared by the income tax authorities.

The detailed eligibility criteria is listed below, take a look:

Age- The individual should be under 60 years of age, as 15G is not designed for senior citizens according to the Indian income tax rules.

Residential status- One who is applying for form 15G should be a resident of India.

Income limit- The total expected income for the whole financial year should be below the income tax limit declared.

When Can You Submit Form 15G?

Form 15G can be submitted once you meet these above-mentioned conditions, it is advisable to carefully read and understand these eligibility criteria before submitting form 15g to avoid such legal implications.

Where Can You Submit It?

One can submit form 15g at the following common places -

Banks

Post office

EPF withdrawal

Income tax offices

Why You Should Submit Form 15G

TDS for EPF withdrawal- If you have an EPF balance of more than ₹50,000, you should submit an EPF form 15G.

TDS on corporate income- An employee is eligible for a TDS deduction on their income if it exceeds ₹5000, in such cases an employee can submit form 15G for PF withdrawal.

TDS on rent- If your total rent payment exceeds ₹1.8 lakhs, there is a TDS available for that.

What Happens if Your Form 15G is Not Submitted

If your form 15G has not been submitted at the required time period when TDS is applicable to your income, the payer will likely deduct the TDS as per the applicable tax rates.

Go through these potential steps you might require if you forget to submit a form 15G:

Claim an income tax return (ITR)- If your TDS has been deducted, you should file a tax return claim at the end of the financial year. This is a necessary step to manage the TDS deducted.

Immediately submit form 15G- Attach a copy of form 15G with your ITR to avoid such deductions, as it will serve as a declaration that your income is less than the tax limit.

After submitting these essentials, the income tax department will verify your attached form 15G along with the ITR claim, if those are found valid you will receive a refund for the excess TDS deducted.

Takeaway

Form 15G is relevant when dealing with income-related complications where the tax deducted at source (TDS) might be applicable. Individuals are advised to understand the importance of filing Form 15G as a part of implementing a financial strategy and securing themselves from unwanted TDS deductions.

Getting Tax Benefits with Tata AIG’s Health Insurance Plans

A health insurance policy is designed to provide coverage for medical expenses. Moreover, when you buy health insurance, you get tax deductions under Section 80D of the Income Tax act on the policy premium you pay for your family and yourself.

Tata AIG brings to you customisable medical insurance plans, such as personal health insurance coverage, a family floater plan, and many more. You can alter and buy an insurance plan keeping your medical requirements ahead, and set your mind to relax from tax deductions.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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