8 Factors to Consider Before Filling Form 15G Online

If you have a bank account, chances are you might have noticed that your banking institution deducts an amount every year as Tax Deducted at Source. When an individual’s interest income exceeds 10,000 INR, banks deduct TDS. However, if your overall income is less than the taxable threshold, you may simply send Form 15G to your bank, asking that no TDS be deducted from the interest you received during the fiscal year. Interest income can be defined as the money received by keeping a significant quantity of funds in your savings accounts.

This article will provide details on what is Form 15G, its eligibility criteria, usage of Form 15G as well as the factors you need to consider while filing it online.

What is Form 15G?

Form 15G is an important instrument in our nation’s income tax inventory, designed to assist taxpayers with TDS. In short, it is a document used to demand that your Bank not deduct TDS for a certain occurrence. If this document is not completed, tax-free earnings from your interest income may be taxed. This makes Form 15G a critical money-saving asset. Filling out Form 15G can be really beneficial for you.

In layman’s words, Form 15G can be described as a self-declaration document that an individual is required to submit to his or her bank authority in order to avoid Tax Deducted at Source on the interest income from fixed and recurring bank deposits.

Who is eligible to file Form 15G?

The following

1. The applicant can be a person, a member of a Hindu Undivided Family, or a charity, but not a business or a firm.
2. The applicant must be a legal Indian citizen.
3. The applicant should be under the age of 60 years.
4. The applicant’s computed income tax should be zero.
5. The overall interest income of the applicant for the year when he or she is filing Form 15G should be less than that particular year’s base exemption level.

When Form 15G can be used?

Form 15G can be utilized if a person wishes to avoid Tax Deducted at Source on interest on securities, NSS, Provident Fund, bank deposits, company deposits, and so forth. However, this form cannot be used to save tax from any other income source, making it exceedingly specialized.

Things to Keep in Mind When Filling Out Form 15G

Here are some important points you need to keep in mind while you are filing Form 15G.

1. Check your Eligibility – verify that you are under the age of 60 years.
2. Check that all of your information is correct.
3. Mention the right evaluation year.
4. Do not overestimate your expected earnings.

A photocopy of your valid PAN card is required for submission along with the self- requirements must be completed in order for Form 15G to be submitted successfully.     

1. Don’t forget to acquire an acknowledgment slip once you’ve submitted the document online.
2. Fill out just the First Part of the document. Part 2 must not be completed.
3. This document is not a substitute for your annual income tax return filing, and you must file it as well.

Filling Out Form 15G Online

Individuals may download Form 15G from their bank’s online website or fill it out online from their bank’s website.

They must fill out the following information.

1. Declarant’s Name – Name of the applicant
2. PAN card information – Applicant’s PAN Card number
3. Status – It is used to differentiate between a person, a HUF, and a Trust.
4. Previous Year – This relates to the current fiscal year for which the applicant is completing the document.
5. Residential Status – The applicant’s nationality
6. Address Information – The applicant’s address and contact information, like email, mobile number, state, town, and PIN code.
7. Option A – If your income exceeded the taxable limits in any single year of the previous six years, respond ‘yes’ to the question.
8. If you answered yes, you must specify the most recent year where your income exceeded the taxable limit.

Estimated income – The applicant’s income from which no TDS should be charged                               

1. Estimated overall income for the prior year – Applicant’s total income for the fiscal year.
2. Information apart from Form 15G – If the applicant has previously filled out Form 15G, he or she needs to include the entire number of forms filed.
3. Income details – Source and amount of income

After you’ve specified the necessary information, be sure you’re submitting on behalf of a Hindu Undivided family or Trust or for yourself. Click here to know more about form 15G, form 15H & much more.

Conclusion:

If you meet the conditions for filing Form 15G, make sure that the amount is accurately reported and the details are true of your financial situation. There have been multiple cases where income has been underreported in order to avoid tax deducted at source, which can result in a penalty of up to a possible 7 years’ imprisonment. Thus, one should always try to take utmost care while filling out form 15G. To avoid these complications, ensure that you educate yourself thoroughly before submitting either form and consider filing Form 15G online.