Taxes may sometimes feel confusing for various reasons. Most of us also do not like losing out on interest income due to TDS deductions by the banks. However, what about some ways to legally bypass this deduction? This is where Form 15G is a good solution that you can use.
What Exactly Is Form 15G?
Suppose you have deployed investments in FDs and other schemes with a view towards earning interest income steadily. However, right then your bank comes along and deducts TDS before you even see your returns. This is where you can strategically use Form 15G for maximum benefits. This is a self-declaration from your side to the bank. This mentions how your income is less than the taxable threshold and why TDS deductions should not take place, as a result.
Who Can Submit Form 15G?
Here is a checklist to see whether you are eligible for Form 15G or not.
- You have to be either a HUF or individual, since companies cannot submit this form
- You should be a resident of India and less than 60 years old (senior citizens will require Form 15H)
- Your income should be less than Rs. 2.5 lakh per annum, while your tax liabilities for the financial year should be nil
You’ll be good to go once you tick off all these boxes.
Why Should You Bother with Form 15G?
Your bank will deduct TDS once your interest earnings surpass Rs. 40, 000 per annum. Submitting Form 15G will help you stop this TDS deduction right from the source itself. Also, you can bypass the hassles of applying for refunds in case the bank deducts TDS but your income is non-taxable. The whole interest income may also be retained, ensuring more money in your hands as well.
How to Fill and Submit Form 15G
Make sure you get the form from the bank site or your branch. Some financial institutions may allow you to submit this form online as well. Enter all your key information including your PAN, name, contact details, address, etc. Make sure you avoid making any mistakes and double-check the information before submitting it. You should also declare your income and earlier form details (if any). Submit online or handover the form to the authorized personnel at your bank’s branch.
A Few Things to Keep in Mind
Form 15G is an annual affair and has validity for just a single financial year. You should submit it every year. You should avoid giving any false details since it may lead to huge penalties otherwise. Remember that tax regulations are subject to change and you should thus carefully check the eligibility guidelines each year.
Use Form 15G wisely, if applicable, to make tax planning simpler and get more money in your hands. It is a small yet major step that you should know more about.