Form 15G can be filled by Indian residents (not by a company or a firm), who are below the age of 60 years, to request their banks not to charge TDS on their interest income. Interest income is the income that is generated on a savings account, fixed deposits (FDs), or other sources of interest from an investment. It is not mandatory to fill out Form 15G, however, you should fill it out if you wish to save your interest income. 

You can fill Form 15G when your interest income is below the basic exemption limit, i.e., INR 40, 000 and INR 50, 000 for senior citizens, in a financial year. Form 15G must be submitted to your respective bank at the beginning of the financial year. However, if you forget to submit it, you can submit it as soon as possible. In case TDS gets deducted on some or all the interest income, you can submit Form 15G to the Income Tax department. The department will return the excess TDS.

Recent Updates about 15G

Form 15G has witnessed several changes in the past few years. Section 197A of the Income Tax Act 1961 mentions all the guidelines and rules related to Form 15G. In the year 2015, the format of Form 15G underwent several changes and a new and simpler format was introduced by CBDT ( Central Board of Direct Tax). Some of the changes include:

• The due date for submitting the form for the financial year 2021-22 has been extended.
• For individuals who have lost their lives due to SARS Covid-19, their families have been granted tax relief. 
• Ex-gratia payments received by the families of employees who lost their lives due to SARS Covid-19 will be exempted from paying tax. However, the government may amend this rule in the coming times.
• From 2019-20, the tax incurred on medical expenses of SARS Covid-19 has been exempted.

How to download Form 15G?

The process to download Form 15G is quite simple and easy. You can do it in two ways:

• You can download it from the official website of your bank.
• You can download it from the official website of the Income Tax Department.

Instructions to fill Form 15G

Form 15G contains two parts. Let’s understand them in detail:

Part-A

• It is filled by the individual seeking tax deduction on interest income.
• Any firm or company cannot file Form 15G. Only individuals below the age of 60 can file.
• Name- As mentioned in the PAN Card.
• Valid PAN Number (Permanent Account Number).
• Previous Year-Select the one you are claiming TDS deduction for.
• Residential status- Resident (NRIs are not allowed to fill Form 15G).
• Communication Address- Proper address with PIN code.
• Valid phone number and Email Id for updates and information.
• If the accessed tax in the previous assessment years, tap “Yes”.
• The Form asks for the latest year of assessment in which the department assessed your returns.
• Income – Total estimated income of the year for which you are filling the form.
• In case you have filed another 15G anytime in the current financial year, then mention the aggregate income in the current declaration along with details.
• Investment Details (Last Part of Section A)- investment account number of any sort of investment be it term deposit or employee/life insurance policy number.
• Also, add the details of the investment made like policy number, term deposit, employee code, life insurance, etc.
• After filling all the sections, revise and recheck all the information.

Part-B

• It is filled by the deductor (the employee who will deposit TDS to the government). 

How to fill Form 15G?

By visiting the official website of either your bank or Income Tax, you can download the form. This is how you can do it:

• Log in to your net banking
• Go to the Online Fixed Deposit section and click on “Generate Form 15G and Form 15H”. 
• Form 15G will appear
• Fill in the form correctly by following the instructions mentioned above 
• You also need to add the branch details where you have your deposits 
• In case of any information missing regarding the branch, you can access it using the branch locator tool
• Fill in all the information appropriately and submit it

Penalty for submitting a false declaration by using Form 15G

• Under Section 277 of the Income Tax Act 1961, there are fines and imprisonment punishments for individuals filing false declarations by using Form 15G to get a tax deduction on TDS.
• Imprisonment punishment for a minimum of 6 months and a maximum of 7 years for tax deduction filed on an income of more than INR 1 Lakh. 
• Below INR 1 lakh, imprisonment punishment is given for a minimum of 3 months and a maximum of 3 years.

Conclusion

Form 15G is submitted to reduce the tax burden on individuals who are below the basic exemption limit of INR 40, 000. By following the legal process and government guidelines, you can avail of this exemption. Also, filing a false declaration can result in long-term imprisonment. Make sure you keep a tab on the important dates for filing the form and submit it on time.