Form 15G

What is Form 15G?

Form 15G is a self-declaration form designed to help individuals avoid Tax Deducted at Source (TDS) on certain types of income, such as EPF withdrawals and interest from fixed deposits.

It is specifically applicable to individuals under the age of 60 whose total income falls below the taxable limit.

Purpose of Form 15G:

• EPF Withdrawals: Individuals can submit Form 15G when withdrawing more than ₹50,000 from their EPF account (if the account has less than five years of service) to avoid TDS deductions.
• Fixed Deposits: The form helps individuals prevent TDS deductions on fixed deposit interest if the annual interest income is below ₹40,000 (₹50,000 for senior citizens).
• Mandatory Submission: Not submitting Form 15G can lead to a 10% TDS deduction, which can only be reclaimed when filing an income tax return.

To avoid TDS deductions throughout the year, Form 15G should ideally be submitted at the start of the financial year, preferably in April. Early submission ensures better tax planning and prevents unnecessary delays in managing income effectively.

Who is eligible for the 15g form?

• Age: Applicable to individuals below 60 years, including Hindu Undivided Families (HUFs) and trust entities.
• Income Limit: Total taxable income must not exceed ₹2.5 lakh (or ₹3 lakh for those opting for the new tax regime).
• Residency: Only Indian residents are eligible to submit Form 15G.
• Tax Liability: The individual should have no tax liability for the financial year.
• Interest Income Threshold: Interest income should not exceed the basic exemption limit.

If they meet eligibility conditions, individuals can submit Form 15G to avoid TDS deductions on interest income. For senior citizens aged 60 years or older, Form 15H is applicable instead.

How to download the 15g form

Step 1: Visit the Official Website

To begin, open a web browser and type incometaxindia.gov.in in the address bar. It is essential to access the official website to avoid errors or potential redirection to unofficial pages.

Step 2: Navigate to the Forms Section

Once on the homepage, scroll down to find the Income Tax Forms link located under the Quick Access section. Clicking this link will direct users to a page displaying all the available forms.

Step 3: Locate Form 15G

Users can browse through the list or use the search functionality to locate Form 15G. Once identified, clicking on its link will provide the option to download the form.

Step 4: Download the Form

Mobile Users: The form typically downloads automatically as a PDF file. Desktop or Laptop Users: Right-click on the PDF link and select Download to save the form to a preferred folder on the computer.

Step 5: Fill Out and Submit the Form

After downloading, the form should be completed with the required details. It can then be submitted for applicable purposes, such as EPF withdrawals, to avoid unnecessary TDS deductions.

How to fill form 15g

Step 1: Obtain Form 15G

Form 15G can be downloaded from the official Income Tax India website. Once downloaded, it should be printed for manual completion using a blue or black pen. After filling out the form, it must be scanned and uploaded later.

Step 2: Understand the Structure of Form 15G

The form consists of two main sections:

• Part 1: To be filled out by the individual submitting the form.
• Part 2: Reserved for completion by the EPFO department and does not require the individual’s input.

Step 3: Completing Part 1 (Details to Be Provided)

This section requires personal and financial details. Each field should be completed as follows:

• Name: Field 1 requires the full name of the individual, matching the records in their EPF account.
• PAN Details: Field 2 should include the Permanent Account Number (PAN). Accuracy is crucial, as this information is linked to tax records.
• Status: In Field 3, the individual should select Individual as their status.
• Previous Year: Field 4 asks for the previous financial year. For example, if the form is being submitted before March 31, 2025, the previous year would be 2024-2025.
• Residential Status: In Field 5, the residential status should be marked as Indian.
• Address: Fields 6 to 12 must be filled with the complete address, ensuring consistency with the address listed in EPF records.
• Email and Phone Number: Fields 13 and 14 require the email address and mobile number for communication purposes.
• Estimated Income: Field 16 requires the estimated EPF amount intended for withdrawal. Pension income should not be included, as Form 15G is specific to EPF withdrawals.
• Estimated Total Income for the Previous Year: In Field 17, the total estimated income for the previous year should be mentioned, including the EPF withdrawal amount and any other sources of income, such as salary or business income. For instance, if the EPF withdrawal amount is ₹1.5 lakh and the salary is ₹1 lakh, the total estimated income would be ₹2.5 lakh.
• Details of Previous Form 15G Submissions: If the individual has submitted Form 15G for other incomes, such as fixed deposits, the details should be provided be left blank.

Step 4: Declaration Section

In the Declaration/Verification section:

• The individual must sign the form.
• The date and place of submission should be added to ensure the date aligns with the EPF withdrawal request submission.

Step 5: Submit the Form

After completing and signing Form 15G, it should be scanned and uploaded on the EPFO Member Portal under Form 19 when submitting the EPF withdrawal application.

By carefully following these steps, individuals can ensure a smooth filing process and avoid unnecessary TDS deductions on their EPF withdrawals.

When to Submit Form 15G?

Employees’ Provident Fund (EPF)

Individuals withdrawing more than ₹50,000 from their EPF account before completing five years of continuous service can submit Form 15G to avoid TDS deductions. This is applicable only if the total income, including the EPF withdrawal, falls below the taxable threshold.

Corporate Bonds

Holders of corporate bonds can submit Form 15G to the bond issuer if their income from bonds exceeds ₹5,000. This prevents TDS deductions, provided the total income remains below the taxable limit.

LIC Maturity Proceeds

For LIC maturity proceeds exceeding ₹1 lakh, where the income is taxable, Form 15G can be submitted to avoid a 5% TDS deduction (applicable as of September 2019). This is valid only if the individual’s overall income is below the taxable limit.

Post Office Deposits

Form 15G can also be used for income earned from Post Office deposits, such as Fixed Deposits or Senior Citizen Savings Schemes. Submitting the form ensures no TDS is deducted, provided the income is within the exemption limit.

Rent Payments

Individuals earning rent exceeding ₹2.4 lakh annually can submit Form 15G to their tenants, requesting non-deduction of TDS. This is applicable if the total income, including rent, does not surpass the taxable threshold.

Insurance Commission

Insurance agents earning commission income above ₹15,000 in a financial year can submit Form 15G to the insurance company to avoid TDS deductions. This is valid if the agent’s total taxable income is nil.

Dividend Income

For individuals earning dividend income exceeding ₹5,000, Form 15G can be submitted to the company distributing the dividends to prevent TDS deductions, provided the total income remains below the taxable limit.

What is the difference between form 15g and 15h?