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Form 15G – Declaration to Prevent TDS Deduction on Interest Income

Expert Assistance for Filing Form 15G to Avoid TDS on Fixed Deposits, Savings Interest & Other Income

Form 15G is a self-declaration form under Section 197A of the Income Tax Act, 1961, which can be submitted by a resident individual (below 60 years of age) or a HUF to request that the payer (bank, post office, company, or co-operative society) does not deduct TDS on specified income — primarily interest on fixed deposits, recurring deposits, savings accounts, bonds, and NSC — provided the declarant's estimated total income for the financial year does not exceed the basic exemption limit. By submitting Form 15G, the taxpayer prevents unnecessary TDS deductions on income that would otherwise be non-taxable, avoiding the need to wait for ITR refunds to recover the deducted tax.

However, submitting a false or incorrect Form 15G — declaring that income is below the taxable limit when it is actually above — attracts prosecution under Section 277 of the Income Tax Act for furnishing false information. Our team provides complete Form 15G guidance, eligibility checks, and filing assistance. This service connects with Form 15H (for senior citizens), TDS & Tax Liability advisory, and PAN Registration.

Our Form 15G Services

Eligibility Assessment

Professional verification of whether you qualify to submit Form 15G — checking age criterion (below 60), residency status, estimated total income, and whether all two conditions under Section 197A(1A) are satisfied.

Form 15G Preparation & Filing

Accurate preparation of Form 15G with correct declaration of estimated income, interest income breakup, and PAN details — filed correctly with each bank, NBFC, or institution to cover all interest-earning accounts.

Multi-Bank Form 15G Coordination

Where interest income is received from multiple banks or branches, coordination of Form 15G submissions across all payers — ensuring aggregate income disclosure is consistent and no payer deducts TDS incorrectly.

Annual Renewal Advisory

Timely reminders and assistance for annual Form 15G renewal — since the declaration is valid only for one financial year and must be refiled at the start of each year before interest is credited.

TDS Recovery Where Deducted

Where TDS has already been deducted despite a valid Form 15G, assistance in claiming TDS refund through ITR filing by correctly reflecting TDS credits from Form 26AS and AIS.

Income Planning Advisory

Advisory on structuring interest income across financial instruments and family members to ensure income remains within the Form 15G eligibility limit, preventing TDS and avoiding the refund cycle.

Benefits of Submitting Form 15G

  • Prevents unnecessary TDS deduction on interest income when total income is below the taxable limit, improving cash flow
  • Eliminates the need to file an ITR solely to claim a TDS refund on non-taxable interest income
  • Applicable to fixed deposits, recurring deposits, bonds, NSC interest, corporate deposits, and co-operative society interest
  • Protects working capital for small investors and senior citizens who depend on interest income
  • Avoids lengthy refund wait times from the Income Tax Department which can take months to process
  • Covers HUFs with income below the basic exemption limit in addition to individual taxpayers

Frequently Asked Questions – Form 15G

Who can submit Form 15G to prevent TDS?
Form 15G can be submitted by: (1) a resident individual below the age of 60 years (Indian citizen); (2) a Hindu Undivided Family (HUF); or (3) any trust, institution, or other person as specified. The two conditions that must be satisfied simultaneously for a valid Form 15G are: (a) the estimated tax on total income for the financial year must be nil (i.e., total income must be below the basic exemption limit after deductions); and (b) the total interest income for which the declaration is being submitted must not exceed the basic exemption limit. NRIs, companies, and firms cannot submit Form 15G.
What types of income can Form 15G be used for?
Form 15G can be submitted for income subject to TDS under multiple sections, including: Section 194A (interest on fixed deposits, recurring deposits, bonds, NSC); Section 194 (dividends — though dividends from listed companies now have separate thresholds); Section 194C (payments to contractors, for small contractors); Section 194D (insurance commission); and Section 194EE (payments under NSS). It is most commonly used for bank FD interest under Section 194A, where TDS is deducted if aggregate interest from a single bank exceeds Rs. 40,000 per year (Rs. 50,000 for senior citizens).
When must Form 15G be submitted?
Form 15G should ideally be submitted at the beginning of each financial year (April 1) — before any interest is credited or TDS is deducted. Banks typically accept Form 15G submissions in April. If submitted mid-year, TDS already deducted on prior credits cannot be reversed by the bank — it can only be recovered through ITR refund. The declaration is valid only for the financial year in which it is submitted and must be renewed every year. Banks are required to quote the Form 15G details in their own quarterly TDS returns, creating an audit trail.
What happens if Form 15G is submitted with false information?
Submitting Form 15G with false information — for example, declaring that estimated income is below the exemption limit when it is actually above — is a serious offence. Section 277 of the Income Tax Act provides for prosecution with imprisonment of up to 7 years and a fine if the false statement is made with fraudulent intent. For inadvertent errors, it is advisable to immediately inform the payer and the bank to correct the declaration and ensure TDS is deducted going forward. Never submit Form 15G if your income is likely to exceed the basic exemption limit after accounting for all sources.
What is the difference between Form 15G and Form 15H?
Form 15G is for resident individuals below 60 years of age and HUFs — both conditions (nil tax liability AND interest income below exemption limit) must be met. Form 15H is for resident individuals aged 60 years or above (senior citizens) — only one condition is required: estimated tax liability on total income for the year must be nil. For senior citizens, even if their interest income exceeds the basic exemption limit, they can file Form 15H as long as their total tax liability after all deductions is nil (which is possible because of the higher basic exemption limit for senior citizens — Rs. 3 lakh — and super-senior citizens — Rs. 5 lakh).

Stop Unnecessary TDS on Your Interest Income — File Form 15G on Time.

Our team verifies your eligibility, prepares the form, and coordinates submission with all your banks and institutions.

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F.A.Q.

It includes all yearly requirements such as filings, actuarial valuation, audits, and maintaining proper records.

Yes, regular compliance is required to maintain approval and tax benefits.

It helps determine the exact gratuity liability and required funding for the trust.

 

Yes, trusts must file necessary returns and maintain financial records as per regulations.

Non-compliance can lead to penalties, loss of tax benefits, or cancellation of approval.

Trustees and the employer are responsible for ensuring proper compliance.