Learn how Chartered Accountants can file Form 15G to prevent TDS deduction for individuals under 60 with income below ₹2.5 lakh.

Clients often panic when banks or institutions deduct TDS on fixed deposits, recurring deposits, or interest income, even when their total income is below the taxable limit. For individuals below 60 years, Form 15G is the key compliance document to prevent unnecessary TDS deduction at source.

For Chartered Accountants, timely guidance on Form 15G means:

• Avoiding blocked refunds due to excess TDS.

• Ensuring smooth cash flows for clients.

• Reducing unnecessary ITR refund processing delays from CPC.

This guide breaks down eligibility, filing process, and CA-specific compliance checks for Form 15G.

What is Form 15G?

Form 15G is a self-declaration form submitted by individuals below 60 years of age to ensure that no TDS is deducted on certain incomes such as bank interest, EPF withdrawal, or post-office deposits.

It is not a tool to avoid tax — it simply ensures that TDS is not deducted when the individual’s total income is below the taxable threshold.

Eligibility Conditions for Filing Form 15G

A Chartered Accountant should verify both conditions before advising clients:

1. Individual must be below 60 years of age (not applicable for HUFs and companies).

2. Total tax liability for the financial year must be NIL (after considering deductions under Chapter VI-A).

3. Aggregate interest income + other income must not exceed the basic exemption limit (₹2.5 lakh for FY 2025-26).

👉 If any of these conditions fail, the client cannot legally submit Form 15G.

Incomes Where Form 15G Can Be Used

• Interest on Fixed Deposits (FDs) and Recurring Deposits (RDs).

• Interest on corporate bonds or debentures.

• Post Office deposit schemes.

• EPF withdrawals before 5 years (if amount > ₹50,000).

• Rental income (if subject to TDS under section 194-I).

Step-by-Step Filing Process for Form 15G

Step 1: Collect PAN and Income Details

• Verify PAN and income details of the individual.

• Ensure projected taxable income (after deductions) is below ₹2.5 lakh.

Step 2: Obtain Form 15G from the Institution

• Banks and institutions generally provide an online option via net banking.

• Alternatively, download the form from the Income Tax Department website.

Step 3: Fill Part I of Form 15G (by the declarant)

Key details include:

• Name, PAN, Status (Individual), and Residential Address.

• Previous year (FY) relevant to the declaration.

• Estimated total income for the year.

• Estimated income on which TDS should not be deducted.

Step 4: Submit to Deductor

• Submit online via bank/EPF portal, or offline at the branch.

• Always collect acknowledgment or proof of submission.

Step 5: Deductor Verification

• The bank/EPF authority fills Part II, validates PAN, and reports to the Income Tax Department.

Compliance Tips for CAs

1. PAN Linking Mandatory – If PAN is not quoted, TDS will be deducted at 20% even if Form 15G is filed.

2. Multiple Declarations – If the client has deposits across banks, Form 15G must be filed separately for each deductor.

3. Yearly Renewal – Form 15G is valid only for the specific financial year. CAs should set reminder systems for annual filing.

4. Avoid Misuse – Submitting Form 15G with taxable income can invite penalty under Section 277 for false declaration.

5. Digital Recordkeeping – Store scanned copies of all declarations in the client’s compliance folder for future assessments.

Common Mistakes That Trigger CPC/Bank Issues

• Filing without checking if total income exceeds the exemption limit.

• Mismatched PAN or Aadhaar details.

• Forgetting to submit to all banks/branches where interest income is earned.

• Assuming HUFs or senior citizens can file Form 15G (they must use Form 15H).

Why Form 15G Filing Matters for Your CA Practice

• Saves clients from TDS deduction + refund wait cycle.

• Reduces cash flow disruptions for individuals dependent on FD/interest income.

• Builds trust and credibility, as many taxpayers are unaware of Form 15G compliance.

Conclusion

For individuals below 60 years, Form 15G is a critical preventive compliance step. As a Chartered Accountant, proactively advising eligible clients to file Form 15G not only optimizes their tax outcomes but also strengthens your role as a trusted compliance partner.