The Tax Deducted at Source (TDS) is deducted by the bank when the interest earned by the individual is more than Rs, 10,000 a year for holding a substantial amount in a savings account. However, even you earn the said amount, the total income is under NIL as per the tax slab in that financial year; you can stop the bank from deducting the TDS by filing the form 15G.
From the website of the bank where you have your savings account, This form can be obtained offline from the branch or from the website of the bank form 15G is downloaded.
At the time of applying for this form, submission of the PAN number is mandatory. Form 15G has to be submitted every year. It is recommended to submit Form 15G at the commencement of the financial year to prevent the bank from making any deductions.
To fill Form 15G online, the following steps are as follows:
Step One: Visit the website of the bank, where your savings account is maintained. You can find a search option on every website, type "Form 15G". Click on the result shown, which will; lead you to the form.
Step Two: Enter the personal details - the name of the declarant matching the PAN and income tax documents, whether the applicant is an individual or HUF, residential status of the applicant, full address, contact details, and current financial years.
Step Three: Enter the record if the income was above the taxable limit within the immediate past 6 years. If income was above the taxable limit in any year, then the specific year and the estimated amount of the specific year and other income against which the TDS is requested to be waived.
Step Four: Calculate the total income earned from all sources, including salary, interest income, stipend, and income from any other sources. Also, mention the total number of forms 15G filled for that particular year if you have more than one savings account.
Step Five: Fill in the aggregate amount of income for which the form 15G is filled, along with declaration, identification number, account number, kind of income, and the sections under the Income Tax Act 1961 deducting the tax. In the end, add your signature.
Before proceeding with the submission of Form 15G, it is necessary to understand the TDS relevant to the EPF account. Sec. 192A of the Finance Act 2015 states that the withdrawal from the EPF account shall attract TDS when the amount withdrawn is more than Rs. 50,000, and the employee has worked with the organisation for less than 5 years.
The procedure to fill form 15G are as follows:
Step One: Visit the EPF official website and log in using the UAN number and password.
Step Two: Click on the "online service" option and select claim (Form 31, 19, and 10C).
Step Three: Confirm the last four digits of the registered bank account.
Step Five: Upload form 15G and click on the 'I want to apply for' option.