Fill out Form 15G to declare that no tax deduction at source (tax deduction) is made from your interest income for the year if you have a fixed deposit (individuals under 60 and HUFs). Banks are required by the income tax regulations to deduct tax at source (TDS) from any interest payments made on fixed deposits, regular deposits, etc. There is an Rs. cap on it. Each fiscal year, it exceeds 10,000 rupees. EPF form 15G for PF submissions can now be made through the EPFO Unified Portal. Members of the EPF are now able to withdraw their PF online. TDS can also be avoided, which is a significant advantage.
When is the TDS applicable?
If an employee has less than five years of service and wants to withdraw EPF money that is greater than or equal to Rs. 50 000.
1.) When an employee is able to submit his or her PAN card (but the 15G form for EPF/15H has not been submitted), the TDS is deducted at a rate of 10%.
2.) TDS will be withheld at a rate of 34.608 percent if an employee fails to submit his PAN card. (Forms 15G and 15H must also be completed.)
When it is determined that the TDS is not applicable?
1) If someone transfers their EPF account to someone else.
2.) The employee’s employment was terminated because of their own illness, the employer’s cessation of work, the completion of a task, or any other circumstances beyond their control.
3.) After working for a total of five years (including time spent with an employer who was a previous employer), the employee withdraws the EPF amount.
4.) When the employee has fewer than five years of service and an EPF contribution of less than Rs. 50 000.
5) The employee must submit Form 15G/15H and a PAN card and be able to withdraw more than or equal to Rs. 50,000 in less than five years.
Instructions on how to fill the Form 15G
Form 15G is split into two sections. For those who want to claim no TDS deduction on specific types of income, there are two options. These are the fields on Form 15G’s first section that you must complete.
Name of the assessee – Name that appears on the PAN card.
PAN of the Assessee: A valid PAN card is required to complete Form 15G.Your application is deemed invalid if you do not provide current PAN information. A declaration on Form 15G may be made by an individual, but not by any company or business.
Status: Depending on your circumstances, your tax status may be Individual, Hindu Undivided Family (HUF), or AOP.
Previous Year: You have to select the prior year as the fiscal year for which you’re seeking the deduction of TDS.
Residential Status: Indicate that you are a resident, as an NRI is not allowed to complete Form 15G.
Address: Be sure to include your PIN code along with your email address.
Email ID and number: If you would like the EPF to be able to contact you in the future, kindly provide a valid email address and phone number.
When you were assessed tax under the Income Tax Act 1961. If you were assessed tax in one or more prior assessment years in accordance with the rules of the I.T. Act of 1961, check the “Yes” box.
( b) If yes, the most recent assessment year for which the returns were assessed: Mention the latest assessment year for which returns were analyzed.
Estimated earnings for which the declaration has been made The estimated amount that you intend to declare should be noted.
The estimated total income for the P.Y. is made up of the income amounts listed in column 16: Total anticipated revenue for the fiscal year (which takes into account all revenue)
In addition to the form you submitted during this year’s prior year, if applicable, information from Form 15G. You must include the specifics of the prior declaration along with the total amount of your income in the current declaration if you have already completed Form 15G at any point during the fiscal year.
Information about the income that the declaration was made: You must complete the last section of section 1 by providing information about your investment account that you will need to include in the declaration. Your investment account number (e.g., the term deposit number, life insurance policy number, employee code, etc.) must be entered.
Check all of the information carefully to make sure there are no errors after you have completed the fields.
On a lighter note
Form 15G can be extremely helpful in reducing TDS. In many situations, Form 15G can greatly help to lessen the TDS burden. But, making false information on Form 15G solely to avoid TDS could lead to penalties of a fine or even prison pursuant to Section 277 of the Income Tax Act, 1961
The person who is the deductor, i.e., the person who intends to transfer the tax deducted directly to the tax authorities on behalf of the assessor of taxes, also needs to fill out another section of the form.
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Form 15G FAQs
Yes, you need to give the original copy to every branch that shows interest. The only restriction is that TDS can only be taken off if your total interest income across all branches exceeds 10,000.
Form 15G and Form 15H claim that because there is no tax on your total income, no TDS is necessary on the interest you earn. Tax deductions are available for interest earned on corporate bonds, fixed deposits, and recurring deposits.
You don’t have to send your form to the tax division directly. You can just hand it to the deductor, and they’ll fill it out and send it to the tax office.