What Is Form 15G And How To Use It?


How to Fill Form 15G? How to Fill Form 15H?
How to Fill Form 15G? How to Fill Form 15H? from www.bemoneyaware.com

Form 15G is a form which is filed by an individual who is below the age of 60 years and HUFs or Hindu Undivided Families who want to reduce the amount of tax deducted at source (TDS) on their income. TDS or Tax Deducted at Source is a tax which is deducted by the payer of the income on behalf of the government. It is submitted to the Income Tax Department of India. Generally, TDS is deducted at a rate of 10% of the total income but by submitting Form 15G, the TDS rate can be reduced to nil.

Who Can Submit Form 15G?

Form 15G can be submitted by an individual who is below the age of 60 years and HUFs or Hindu Undivided Families. It is also mandatory for a taxpayer to submit Form 15H if they are above the age of 60 years. In addition, the taxpayer must also meet certain criteria in order to be eligible to submit the form. The criteria are as follows:

  • The total income of the taxpayer should not exceed Rs. 2.5 lakhs in a year.
  • The taxpayer should not have any income from business or profession.
  • The taxpayer should not have any capital gains.
  • The taxpayer should not have any agricultural income.

How to Submit Form 15G?

Form 15G can be submitted in a few simple steps. Firstly, the taxpayer must fill out the form which is available on the Income Tax Department’s website. The taxpayer must make sure that all the information provided in the form is accurate. Once the form is filled out, the taxpayer must submit the form along with the relevant documents such as proof of identity and proof of address to the Income Tax Department. The department will then process the form and issue a certificate if the form is accepted.

Advantages of Submitting Form 15G

The main advantage of submitting Form 15G is that it helps the taxpayer to save on their tax liability. By submitting the form, the taxpayer is essentially telling the Income Tax Department that their total income is below the taxable limit and, thus, no TDS will be deducted from their income. This helps the taxpayer to save on their tax liability as they will not have to pay any extra tax on their income.

Disadvantages of Submitting Form 15G

The main disadvantage of submitting Form 15G is that it is subject to scrutiny by the Income Tax Department. If the department finds any discrepancies in the information provided by the taxpayer, then they may reject the form and issue a notice to the taxpayer demanding the payment of the taxes. Thus, it is important for the taxpayer to make sure that all the information provided in the form is accurate and complete.

Conclusion

Form 15G is an important form which can be used by individuals and HUFs to reduce their tax liability. It is important for the taxpayer to make sure that all the information provided in the form is accurate and complete. In addition, the taxpayer must also make sure that they meet all the criteria as mentioned above in order to be eligible to submit the form. By submitting the form, the taxpayer can save on their tax liability and avoid any penalties from the Income Tax Department.


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