Form 15G - Declaration for Non-Deduction of TDS

In essence, it is a form which is used to request the Income Tax department not to deduct tax or TDS for a particular instance. Tax free income from certain investments can be taxed if this form is not filled, making it a crucial money saving asset.

When to use Form 15G?

This form can be used when an individual hopes to avoid TDS on interest in case of securities, Provident Fund, NSS, bank/company deposits, etc. One cannot use this form to save TDS from any other source of income, making this an extremely specialised form.

Who can Submit Form 15G?

Form 15G can be submitted by individuals who wish to save TDS on the interest earned through certain investments. One should have a valid investment, in order to be eligible to use this form. Other factors one should consider are mentioned below.

1. Indian resident – You should be an Indian resident in order to be able to use the provisions under Form 15G. NRIs cannot avail these benefits.
2. Age – Form 15G is directed towards a particular age group and only individuals below the age of 60 years can use this form.
3. HUF/trust – Apart from individuals, Hindu Undivided Families and trusts can use this form to save on TDS.
4. Interest – This form can be used when the interest on your deposits exceeds Rs 10,000 in a financial year. One should also keep in mind that the total aggregate of the income plus the interest in a financial year should be under the exemption limit of the Income Tax Slabs.

Form 15G Example

Mr. Ram, aged 43 years and residing in Delhi has an annual income of Rs 1.2 lakh from his job and he also earns Rs 60,000 as interest from various deposits, making his total income Rs 1.8 lakh. He is eligible for deductions worth Rs 1 lakh, taking his total income after deductions to Rs 80,000. He can use Form 15G to avoid TDS on the interest as his total income prior to deductions falls under the exemption limit according to the tax slabs.

Components of Form 15G

Form 15G is simple and straightforward to understand, containing provisions for the following elements. Part 1 of the form consists of the following:

1. Name and PAN details of individual
2. Details about the financial year
3. Address and contact details
4. Details about income – including nature of income and section under which it is deductible
5. Declaration stating that the information provided is accurate and not misleading

Part 2 of the form has the following components:

1. Name of individual with tax liability
2. PAN details
3. Unique Identification number
4. Address and contact details
5. TAN details
6. Amount of income paid

Things to remember while filling Form 15G

Individuals filing Form 15G should keep the following points in mind.

1. Check eligibility
2. Ensure all details are entered correctly, misleading information could cause problems later
3. Mention the right assessment year while filling the form
4. Do not over/underestimate the estimated income you can expect
5. Only fill Part 1 of the form. Part 2 should not be filled
6. This form is not a replacement for your income tax return and you need to file it
7. Attach a copy of your PAN card with the form
8. Ensure to take an acknowledgment after submitting this form

How to Fill Form 15G for PF Withdrawal?

Follow the steps given below to fill up Form 15G for online EPF withdrawal:

1. Step 1: Login to the Employees' Provident Fund Organisation's (EPFO) Universal Account Number (UAN) portal for members.
2. Step 2: Click on 'Online Services - Claim (Form 31, 19, 10C)'
3. Step 3: Verify your bank account (the last 4 digits)
4. Step 4: Under 'I want to apply for' click on 'Upload form 15G'

There are two sections for Form 15G. If you want to claim no-deduction of Tax Deducted at Source (TDS) on certain incomes, fill up the first section as follows:

1. Field 1: Name of the Assessee (Declarant) - Enter the name as mentioned on your PAN Card
2. Field 2: PAN of the Assessee: Enter your valid PAN card
3. Field 3: Status: Enter the income tax status as applicable to you (Individual/ Hindu Undivided Family (HUF)/Association of Persons (AOP)
4. Field 4: Previous Year: Select the previous year as the financial year for claiming non-deduction of TDS.
5. Field 5: Residential Status: Enter your residential status as a resident individual because NRI is not allowed to submit Form 15G.
6. Fields 6-12: Address: Enter your communication address along with the PIN code
7. Fields 13-14: Enter your email ID and phone number
8. Field 15 (a): Whether assessed to tax under the Income-tax Act, 1961?
   1. Tick mark ''Yes'' if you were assessed to tax for any of the previous assessment years under the Income Tax Act, 1961
   2. If yes, the latest assessment year for which the returns have been assessed
9. Field 16: Enter the estimated income for which the declaration is being made
10. Field 17: Enter the total estimated income of the financial year
11. Field 18: Details of Form No. 15G other than this form filed during the previous year, if any: If you have filed Form 15G during the current financial year, enter the details of the previous declaration along with the total income amount
12. Field 19: Details of income for which the declaration is filed: Enter the investment account number for your investments which can be your life insurance policy number, term deposit policy number, as well as your employee code, etc.

Ensure that all the details entered by you are accurate and submit the form to the deductor who will submit it to the income tax department.

Where should you submit Form 15G?

It can happen that you are at a loss after filling the form, unsure as to where to submit it. These forms need not be directly submitted to an income tax office. Forms can be submitted to your bank, post offices or the company you work for.

For how long is Form 15G valid?

The validity of Form 15G is limited to the financial year in which an individual has filed and furnished this form. It is valid for 1 financial year only and an individual is expected to furnish a new form for a different year.