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Things You Need To Know About Form 15G For FDs

mahindra-finance-author

by Mahindra Finance

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March 1, 2024

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5 mins read

Are you a fixed deposit (FD) holder? If so, you may have heard about Form 15G and its role in saving you from the hassle of Tax Deducted at Source (TDS) on your FD interest income. But what exactly is Form 15G for FD, and how does it work? In this article, we will demystify Form 15G and provide you with all the information you need to understand its benefits and process.

Form 15G is a self-declaration document that allows individuals below the age of 60 years, with an income below the basic exemption limit, to request that TDS not be deducted from their FD interest. Similarly, senior citizens aged 60 years or more can submit Form 15H for the same purpose. These forms serve as proof that your total taxable income doesn't exceed the prescribed limit and that you have zero tax liability for the financial year.

What is 15G for FD?

Form 15G for FD is designed to simplify the process of requesting nondeduction of TDS on FD interest income. Here are its main features:

  • Self-declaration: It is a self-declaration form where you provide information about your income and tax liability.
  • Age criteria: Individuals below the age of 60 years can use Form 15G, while senior citizens aged 60 years or more must use Form 15G for FD.
  • Electronic filing: Most banks now allow you to submit Form 15G online through their websites, making the process convenient and hassle-free.
  • Annual submission: You need to submit Form 15G income tax at the beginning of each financial year if you meet the eligibility criteria.
  • Reduction of compliance burden: The modification in the structure of Form 15G in 2015 aimed to reduce the compliance burden for both the taxpayer and the tax deductor.

Eligibility Criteria for Submission of Form 15G and 15H

The eligibility criteria for submitting Form 15G and Form 15H depend on your age and other factors:

  • If you are below the age of 60 years and an individual, Hindu Undivided Family (HUF), or trust, you can submit Form 15G for FD.
  • If you are a senior citizen aged 60 years or more, you must submit Form 15H.

It is important to note that nonresident individuals and companies are not eligible to submit these forms. Additionally, banks may have different age cutoffs, so it's essential to check with your specific bank for their requirements.

How to fill Form 15G for fixed deposit

Filling out Form 15G is a straightforward process. Here's a step-by-step guide:

  • Start by entering your name, status (individual/HUF/trust), previous year (financial year), and residential status.
  • Provide your Permanent Account Number (PAN), email address, phone number, and complete address details.
  • Answer 'Yes' if you have been assessed to tax under the Income Tax Act in any of the last six years where your income exceeded the taxable threshold. If not applicable, answer 'No.'
  • If you answered 'Yes,' mention the most recent year in which your income exceeded the taxable threshold.
  • Enter the total amount of interest or other income from which no TDS should be deducted.
  • Determine your total yearly income from all sources, including salary, interest income, stipends, and any other income received.
  • Specify the total number of Form 15G submitted during the previous year (if any).
  • Fill in the income details for which a declaration has been filed, including account or investment identification numbers, sections where tax deductions are allowed, source of income, fixed deposit account number, recurring deposit information, etc.
  • If you are signing on behalf of an HUF or AOP (Association of Persons), indicate your authority.

It is crucial not to submit the form if you need to combine your income with another individual's. In such cases, when a non-earning spouse or child's interest income from an FD needs to be combined with yours, Form 15G is invalid. TDS must be deducted in your name, and your PAN is necessary.

Conclusion

Form 15G is a valuable tool for individuals seeking to prevent TDS on their FD interest income. By submitting this form, you can ensure that your hard-earned money remains intact without any unnecessary deductions. Remember, accurate filling of Form 15G or Form 15H and timely submission are crucial for availing the benefits.

If you meet the eligibility criteria and want to save yourself from the hassle of TDS deductions on your FD interest income, consider submitting Form 15G or Form 15H at the beginning of each financial year.

To learn more about Form 15G and other financial solutions tailored to your needs, explore trusted sources or consult with an expert like Mahindra Finance for personalised guidance and assistance.

FAQs

Q: What is the difference between Form 15G and Form 15H?

Form 15G is for individuals below the age of 60 years, while senior citizens aged 60 years or above must submit Form 15H.

Q: Can I download Form 15G and Form 15H from the income tax website?

Yes, both forms can be downloaded from the official website of the Income Tax Department.

Q: Does Form 15G need to be submitted mandatorily for FDs?

No, it is not mandatory to submit Form 15G for FDs. However, if your interest income exceeds Rs.40,000 in a financial year, it can help you save on TDS.

Q: When do I need to submit Form 15G?

You should submit Form 15G at the beginning of each financial year, preferably in April, if your interest income from FDs exceeds Rs.40,000 and you meet the eligibility criteria.

Q: Can HUFs submit Form 15G or Form 15H?

Yes, HUFs that meet the eligibility requirements can also submit Form 15G or Form 15H.

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