Almost all individuals who are working professionals today are aware that there is a TDS deduction applicable to them on their income, as soon as their earned salary bracket crosses Rs. 10,000/-. Incomes can be from any source including salary, capital gains, property, etc.
TDS or tax deducted at source can be exempted if you fall under the taxable limit but for that, you need to submit a form known as form 15G. You need to submit this form to the bank to request them to avoid any TDS deductions on the interest you have earned in one financial year. If you still have questions, click here to know more about form 15G.
All you need to do is download this form from your bank website or physically collect it from a bank to begin the application process. However, before we discuss how to fill 15G form, you need to remember that an important prerequisite for the form application is your PAN card. Once you submit the form in the bank, no TDS is deducted and you receive your full interest income as per your earnings.
Eligibility For Form 15G
Moving forward, to discuss how to fill 15G form, you need to first understand the eligibility criteria of the same.
- Anyone who wants to submit the form has to be below the age of 65 years.
- As far as the fixed deposit is concerned, the form can only be submitted before you make the first payment of interest on the same.
- Your taxable income should be zero if you wish to submit this form to the bank and you need to be a resident of India to proceed with the application.
How To Fill 15G Form?
In order to understand how to fill 15G form, you need to know the required details that you have to correctly mention on the form and they include the following.
- The first thing you need to do is mention your name, your PAN card number, and your current status in terms of whether you are an individual, a trust, or any other business entity. Always ensure you double-check the information provided.
- The next thing to fill in form 15G is the current financial year that you are filing the form along with your nationality as being Indian is mandatory. Right after this, put in your address details including your phone number and email ID.
- The next section on the form is all about the income declaration and the taxable income if any. You need to mention the earned income throughout the year and the number of 15G forms you have submitted in the past if any.
How Does Form 15G Help?
- With the help of form 15G, you can withdraw your EPF balance amount of more than Rs.50,000 easily, even before completing continuous five years of service.
- You can also save TDS applicable on corporate bonds if the generated income from the same is below the bracket of Rs. 5000.
- The amount you deposit in the post office that you receive as additional income in the future can also be exempted from TDS with the help of form 15G submission.
Overall, to conclude, the introduction of form 15G has been a positive option for all individuals who require an exemption from TDS deductions. All you need to do is follow the eligibility criteria and prepare all prerequisites if any before submitting this form to the bank to enjoy the multiple benefits it promises, as mentioned above. For any doubts, always research well and understand before submitting the form 15G in the bank to avoid rejection or any unexpected penalties.