Form 15G is paperwork that a person can use to avoid TDS charges on their earnings. This form’s rules and procedures are formulated under Section 197A of the Income Tax Act of 1961. It can lower the deductor and tax deductor’s costs and regulatory burdens. Taxpayers under the age of sixty years old can utilize Form 15G.
TDS is levied on several types of interest income received by a taxpayer throughout the year. Many people have earnings that are qualified for TDS reduction, but their overall tax liability for the year is zero. They must bear the TDS burden for the complete economic year, file an income tax return, and seek a TDS deduction refund. The filing of ITRs and claiming an income tax refund is a burden for taxpayers, especially senior folks.
The income tax authorities established Forms 15G and 15H to ensure that such taxpayers are not inconvenienced. Forms 15G and 15H can be filed with the TDS deductor by a qualified taxpayer to guarantee that no TDS is deducted on interest income.
While Form 15G applies to all taxpayers (except corporations and collaboration firms), Form 15H is only for senior citizens. These forms must be submitted at the start of the fiscal year by the claimant. He or she should document such forms with anyone capable of paying them money and deducting TDS as a result.
Several banks and other financial entities have made it possible for taxpayers to document this online application or directly from their net banking account, which has made the process a lot easier.