What is Form 15G or 15H?

Form 15G is an authorized document needed to be filled by the FD holders below 60 years to ensure non-TDS deduction from such individuals. According to Interim Budget Proposals for 2019-20, the threshold for determining the account subject to TDS has been raised to Rs 40,000 from Rs 10,000.

Hence, an individual needs to fill such a declaration if the total dividend income doesn’t exceed the maximum exemption limit. When the tax on the estimated total income for the financial year in which such income is to be included is nil.

A HUF can submit form 15G to avoid TDS on dividend income. A HUF invests in mutual funds and shares of a company through a Karta. The Karta has permission to submit form 15G to the company to avoid tax withholding from the dividend from mutual funds and shares.

Features of Form 15G

Key features of Form 15G are:-

Form 15G is a self-declaration form needed for TDS’s non-deduction if the taxpayers’ annual income is less than the exemption limit.

This self-declaration form has specific rules written under Section 197A provision of the Income Tax Act, 1961,

Since 2015, various changes have been made under the form 15g structure to ease the deductee and tax deductor’s cost and compliance burden.

The Central Board of Direct Taxes (CBDT) formatted the current structure of the form 15G and form 15H.

Taxpayers below 60 years of age need to fill form 15G. Others above 60 years of age (senior citizens) need to fill form 15H, quite similar to form 15G.

If there are any existing undertakings, one must submit the form in the first quarter of any financial year to avail benefits through form 15G. And, in the case of new undertakings, one must submit it before investment attracts any interest.

Where to Fill Form 15G?

You can download generic versions of form 15G from the official website of the Income-tax department. Additionally, you’ll find the form on the website of all the major banks in India. Moreover, you can download and submit the form free of charge on these websites.

Before moving ahead, let’s know when the TDS is and isn’t applicable.

When is the TDS Applicable?

If the employee with less than five years of service wants to withdraw the EPF amount equal to or exceeding Rs.50,000.

Submits the PAN Card deduction in TDS is 10% (in case the form 15G for EPF/15H isn’t submitted).
Fails to submit the PAN card, then the TDS deduction is 34.608% (if the form 15g/15H isn’t submitted).

When isn’t the TDS Applicable?

On transferring an EPF account to a different account.

When you cannot control causes such as worker’s ill health, termination of service, employer’s discontinuation of business, and project completion.

Withdrawing the EPF amount on completion of 5 years of service by an employee (Including the service with a former employer).

If the worker renders below five years, the EPF amount is less than Rs.50 000.

In case the worker withdraws equal to or more than Rs.50 000, with the utilization of fewer than five years, but submits form 15G/15H alongside PAN Card.

Eligibility Criteria for Submitting Form 15G

Following eligibility criteria must be fulfilled by an individual to submit the form 15G :

One must be a resident of India for the applicable Financial year (FY)

One must be a person other than a company or a firm.

An individual must be not more than 60 years of age.

Calculate Tax liability on the total taxable income for the Financial year is zero.

If the basic exemption limit is more than your total interest income for the financial year.

Now, as you understand what is form 15G in pf, where TDS is and isn’t applicable, what are the eligibility criteria to submit form 15G? Let’s advance and know how to fill form 15G for PF withdrawal.

Way to Fill Form 15G for PF Withdrawal

1) Login to EPFO UAN Unified Portal for members.
2) You’ll get the web SERVICES option – Claim (Form 31, 19, 10C); click on that.
3) From your checking account, verify the last four digits.
4) Click on upload form 15G as depicted within the image just below the choice, ‘I want to use for’.

Form 15G sample

Have a look at the Form 15G sample below.

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Instructions to Fill Out Form 15G

There are two sections in form 15G. The first one is for those individuals who wish to claim no deduction of TDS on certain incomes.

Following are the basic details you need to fill out in the first portion of form 15G:

Assessee’s Name (declarant) – Mention the name of the assessee on your PAN Card.
Assessee’s PAN – To file form 15G, a valid PAN card of the assessee is mandatory. Failing to furnish the PAN card details will make your declaration invalid.
Status- Only an individual or HUF can furnish the declaration in form 15G, not a company or a firm.
Previous year- Select the last year in the financial year for which you’re claiming non-deduction of TDS.
Residential status- NRI can’t submit form 15G, hence in residential status, mention resident individual.
Address- Provide the correct PIN code with your communication address.
Mention valid contact number and email ID for further communications.
Suppose you got assessed to tax under the provisions of the Income Tax Act,1961. Then Tick mark ”Yes”.
You need to mention the latest assessment year for which your returns got assessed.
Mention the estimated income (all income) for which you are making the declaration.
If anytime during the financial year, you’ve filed form 15G, then you need to mention details of the previous declaration. And also the aggregate amount of the income.
In the last part of section 1, mention the investment details (investment A/C no., Life insurance policy number, term deposit, employee code, etc.)
Lastly, re-check all the details after filling the entire field to ensure zero error.

Deductor fills the second part of form 15G. He/she is the person who deposits the tax deducted at source to the government on behalf of the tax assessee.

Form 15G – FAQs

Can I submit Form 15G if taxable income does not exceed Rs 5 lakh?

If your net taxable income does not exceed Rs 5 lakh in a financial year, then to avoid TDS, you can submit form 15g.

What will happen if I forget to submit form 15g?

In that case, you can claim your TDS refund by filing ITR. The income tax department will then process your request for a refund claim and credit the tax deducted for the financial year. After all of this, to avoid any further tax deductions, immediately submit form 15g.

What are the differences between Form 15G and Form 15H?

Form 15G applies to individuals less than 60 years of age, and only individuals and HUF can submit this. At the same time, Form 15H is applicable only for individuals above 60 years of age.

Is it necessary to assign a Unique Identification Number (UIN) to each self-declaration made by taxpayers?

According to the CBDT (Central Board of Direct Taxes), the deductor is supposed to assign UIN to each self-declaration made by taxpayers.

Is there any penalty for submitting a false declaration using Form 15G?

Yes, under section 277 of the Income Tax Act,1961, submitting a false declaration can lead to imprisonment. Imprisonment varies from 6 months to 7 years and 3 months to 3 years depends on the law’s criteria.