Form 15G is a declaration that fixed deposit holders (individuals younger than 60 years of age and HUFs) should fill out to ensure that no TDS (source tax deduction) is deducted annually from their interest income. In accordance with the income tax law, in the case of interest received on your fixed deposit, revolving deposit, etc., it is mandatory for banks to deduct tax at source (TDS). In a financial year, it is more than Rs. 10,000. A facility to apply for EPF registration, Form 15G for PF has recently been introduced by EPFO Unified Portal, which enables EPF members to withdraw PF online. You can also stop TDS, which is a wonderful advantage.

Where to find Form 15G online or offline?

It is easy to find and download Form 15-G free of charge from the website of all major banks in India as well as from the official EPFO portal. Additionally, you can also conveniently download this form from the website of the Income Tax Department. In addition, on the website of most major banks in India, you also have the facility to upload form-15g online.

TDS on EPF Withdrawal Rules & Regulation

Let us first understand the rules relating to TDS concerning EPF withdrawal before understanding how to apply Form 15G. EPF withdrawal would attract TDS (Tax Deducted at Source) according to section 192A of the Finance Act, 2015 if the amount of withdrawal is more than Rs.50, 000 and you have operated for less than 5 years. The limit for such TDS had previously been capped at more than Rs.30,000 and above the withdrawal number. The cap was further increased to Rs.50,000 in Budget 2016. Form 15H can also be used to comply with the TDS exemption, with the main difference being that Form 15G is for those under 60 years of age, while Form 15H is for those over 60 years of age. 

Key Features of Form 15-G

The following are the key features of Form 15-G:

  • Form 15G is an identification form for non-deduction of TDS from a certain salary as the taxpayer’s annual income is below the exemption limit.
  • The rules of this independent form are set out under the provisions of Section 197A of the Income Tax Act, 1961.
  • The structure of Form 15G made major changes in 2015 to reduce the compliance burden and costs for both taxpayers and taxpayers.
  • The current format of Form 15-G and Form 15H (different for older citizens of Form 15G) submitted by CBDT (Central Board of Direct Taxes)
  • Form 15G can be submitted by people under the age of 60. Anyone over the age of 60 falls into the category of older people.
  • Form 15H, although similar in many forms to Form 15-G, can only be used by adults.
  • To benefit from this benefit, this announcement needs to be submitted in the first quarter of the financial year if funds are available. However, with the new investments Form, 15-G can be submitted before interest is applied for the first time.

Terms of eligibility for submission form 15G

One must complete the following qualifications to submit Form 15-G:

  • You are an individual or an individual (excluding a company or company).
  • You must be a working FY Indian resident
  • Also, your age should not be more than 60 years
  • The tax payable calculated on the full FY tax rate is zero
  • Your total interest income for the financial year is below the basic release limit.

Systems to complete form 15-G

Form 15G has two sections. The first part is for the person who wants to apply for a non-deduction of TDS to a certain income. The following are the important information you need to complete the first part of Form 15G:

  • Name as mentioned on your PAN card.
  • Permanent Account Number. A valid PAN card is required to insert a 15G form. If you fail to provide valid PAN details, your announcement will be considered invalid.
  • The notice on Form 15-G may be provided by a person but not by a company or company.
  • The previous year should be selected as the financial year for which you are not deducting TDS.
  • State your residency status as a resident because an NRI is not allowed to submit a 15-G form.
  • State your contact address and PIN code.
  • Provide a valid email ID and contact number to keep in touch.
  • Tick ​​‘‘ Yes ’’, if you have been taxed under the provisions of the Income Tax Act, 1961 for any previous year of assessment.
  • State the most recent test year in which your forms were tested.
  • The approximate income from which you make the announcement needs to be stated
  • Total gross revenue for the financial year (including total revenue)
  • If you have already submitted a 15G form at any time during the financial year, the details of the previous announcement and the amount of income need to be stated in the current announcement.
  • The last part of section 1 deals with the details of the investment you are making. You need to enter an investment account number (term deposit/life insurance number/employment code etc.)
  • After completing the entire field, re-check all details to make sure there are no errors.
  • The second part of Form 15G must be completed by the taxpayer ie the person who will submit the tax deducted from the source to the government on behalf of the taxpayer.

Submission of Form 15G

The Central Board of Direct Taxes (CBDT) has introduced the digital 15G and Form 15H submission process. The following is the process of submitting Form 15G online with major banks:

The taxpayer needs to complete Form 15G online and submit it. According to the Central Direct Tax Board (CBDT), the taxpayer must provide the UIN (Unique Identification Number) for each announcement made by taxpayers.

The issuer is required to provide details of all declarations and a unique identifier number (UIN) to the Income Tax Department in a quarterly statement of TDS.

One should keep in mind that your report using Form 15G holds only the best for that financial year. A new proclamation needs to be introduced in the next financial year. However, according to current Government laws and regulations, a borrower must keep Form 15G for a period of seven years.

How to complete and upload 15G Online form

Most banks in India now offer the opportunity to complete and submit Form 15G online. Access to online banking is mandatory to acquire this facility. Here’s how to do it:

  • Log in to your bank account with a valid user ID and password.
  • Click on the Online Deposit Deposit tab to take you to the page where your fixed deposit details are displayed.
  • On the same page, you should have the option to do Form 15G and Form 15H. Click on the available link to open the optional form.
  • Once the form has been opened online in an achievable format, start filling out the details and information carefully.
  • Mention the details of the bank branch held by your FD / RD. If you do not have this practical information, use the tools to find bank branches to easily find the required information.
  • Fill in all the details related to your investment without error and send it.

Form 15G filling process and procedure

Many banks have the option to fill out online and submit a 15G form. For this, you need to have an online banking login to access this facility. The same process is as follows:

  • Using a valid user ID and password, sign in to your entire bank.
  • Click on the online deposit tab as it will redirect you to a page where there are fixed deposit details.
  • On that page, you also get the option to do Form 15G and Form 15H. Click on the link to get the form filling option.
  • Once you have opened the Internet with the form to complete, then begin the process of filling in the details and information carefully.
  • Provide details of the bank branch you have Fixed deposits or duplicate deposits.
  • If you do not have the required information, with the help of the bank locator tools, you can access the information.
  • Fill in all the details of your investment without error and send it.

What services can Form 15G or Form 15H be submitted for?

15G / H forms can be submitted to this transaction i.e.

  • Interest rates – Banks and financial institutions that deduct TDS from interest rates.
  • EPF Withdrawal – Any amount deducted of Rs 50,000 or more before 5 years from the date of account opening is subject to TDS. However, consensus may be avoided in providing Form 15G / H subject to conditions of service.
  • Lease Salary – If the rental income is Rs 2,40,000 / – or more during the year and tax is deducted, you can submit Form 15G or Form 15H as applicable.
  • Insurance Commission – Any insurance agent earning more than Rs 15,000 is liable to TDS and may formally submit these forms.
  • Revenue from corporate bonds – TDS deducts salaries from corporate bonds in excess of Rs 5,000. Form 15G or Form 15H can be sent to the issuer requesting not to deduct that TDS amount.
  • Postage – Digital post offices also charge TDS on certain terms. Form 15G or Form 15H may be submitted requesting non-deduction of any applicable TDS amount.
  • Shares – If dividend income exceeds Rs.2500 TDS is required to be deducted.Fr. 15G / Form 15H may be submitted for the issuance of non-minimum / low TDS.
  • Life insurance fee – If that amount is found other than the / s 10 (10D) over Rs.1,00,000 in FY then the payer needs to deduct TDS @ 5%. The taxpayer may file a Form 15G / Form 15H, as it applies to the avoidance or reduction of TDS.

Penalty for Submitting False Declaration using Form 15G

Providing a false declaration in Form 15G just to avoid TDS can lead to a 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.

  1. 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
  2. For all other cases, imprisonment between 3 months to 3 years.
  3. Hence, instead of making a false declaration, you should consider submitting Form 15G only if you are eligible to do so.

Here’s what you should do if you fail to apply Form 15G on time and TDS has already been deducted:

Step 1: By filing income tax returns, demand your TDS refund.

Once the bank or some other deductor deducts TDS, they will not reimburse you as they are needed to deposit the sum with the Department of Income Tax. The only way out is by sending an ITR to get an income tax refund. Upon verification, the Department of Income Tax will process the request for your refund claim and credit the excess tax deducted for the financial year.

Step 2: Apply Form 15G immediately to prevent further deductions for the current financial year.

Normally, at the end of each year, banks subtract the TDS when the relevant interest on the fixed deposit is measured. To prevent any extra deductions for the current tax, it is best to apply Form 15G as soon as possible.

Things to remember during Type 15G filling

Before filing Form 15G, here are a few items that should be reviewed.

  • Eligibility – make sure you are less than 60 years of age.
  • Double-check the duly completed data.
  • Mention the right year of evaluation.
  • Do not overstate the projected revenue for you.
  • Along with Form 15G for submission, a copy of your PAN card is required.
  • Post submission, do not forget to take a slip of acknowledgment.

Conclusion

In compliance with the provisions of Section 197A of the Income Tax Act, 1961, taxpayers claiming non-deduction of tax on such incomes are expected to file a self-declaration on Form No. 15G or Form No.15H.

Taxpayers can now generate and send Form 15G/Form 15H online if their banker has provided a connection on the Internet Banking portal of their respective bank. For more details associated with e-invoice, you can log in to our website services LegalRaasta.Our expert team will assist you in each part related to GST Registration, Company Registration, Trademark Registration, and its services relatable. You can download our app which is easy to access in android mobiles LegalRaasta APP. Also, you can give us a call at 8750008585 and feel free to send your query on Email: contact@legalraasta.com