Eligibilty for submitting Form 15G ?

POSTED BY jibi ON March 6, 2014 3:54 pm COMMENTS (4)

Hi all,

I am aware of the eligibility criteria for submitting Form 15G to bank for non deduction of TDS on interest.  In a case of a salaried Husband (H) and homemaker Wife (W) whose sole income is from bank deposits, whether W can submit 15G in the following 2 cases:

1. The interest received (less than 2Lakh – current threshold limit of 15G) by W is clubbed with H’s income.
2. W receives interest from 2 separate/different banks totaling more than 2L but the individual interest received from each bank is less than 2L and there is no tax liability for W due to her 80C savings.

Thanks in advance for clarification and regards,
Jibi

4 replies on this article “Eligibilty for submitting Form 15G ?”

  1. ashalanshu says:

    Dear Jibi, Bank has no information on clubbing of income so practically in both cases the Form 15G can be filed.

    In 2nd case, there is no problem to file Form 15G as combined income is less than taxable limit due to PPF investment.

    Thanks

    Ashal

    1. jibi says:

      Thank you Ashal.
      -Jibi

  2. ashalanshu says:

    Dear Jibi, I’m unable to understand the query. Can you simplify it please?

    Thanks

    Ashal

    1. jibi says:

      Dear Ashal,
      Sorry if I have asked the query in a complicated way!.
      As I understand the eligibility criteria for non-senior citizen investor to submit Form 15G, is to fulfill the following two conditions:
      1. There is no final tax liability for him/her, and
      2. The total of the interest etc. received during the FY should be within basic exemption slab (Rs 2L presently)

      Based on this my earlier 2 quries are reframed as follows (the figures provided are for explanation only):
      1. Wife(W, non senior citizen) has no source of income except say Rs 50,000/- from bank FD. This interest income comes under clubbing clause as the capital was amount gifted by her Husband (H). The Husband’s (salaried) income is more than 5L. So, the query is, can the Wife submit form 15G to the bank for non-TDS (i.e. is she eligible for that?).

      2. Again consider same H & W. Now, the Wife invests her own money (i.e no clubbing clause) in say SBI and PNB. The interest from SBI is Rs. 1,30,000 and that from PNB is 80,000/- totaling Rs.2,10,000/-. She also invests Rs 20,000/- in PPF so that her tax liabilty is zero. Now the query is whether she is eligible to submit 15G to SBI & PNB?

      In both the above queries the figures provided are applicable for a single FY, say 14-15.

      Hope my queries are clear to you. My gut feeling is that the Wife is ineligible to provide form 15G in both cases. Am I right or missing something?. Can you pl. clarify?

      Thanks and regards,
      Jibi

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