As per the Income Tax Act of 1961, financial institutions like Bajaj Finance must deduct TDS if the interest income of customers investing in FDs exceeds Rs. 40,000 in a financial year (this limit is Rs. 50,000 for senior citizens). However, if your total income does not exceed the basic exemption limit, you can file Form 15G to prevent the deduction of TDS on interest income. This prevents unnecessary deductions and eliminates the need to file for refunds later. This provision mainly helps individuals relying on interest income for their regular expenses.
Bajaj Finance also offers the service of TDS waiverto its fixed deposit (FD) holders. If you have an active FD with Bajaj Finance, you can download Form 15G from the My Account section on the customer portal and submit it to your nearest branch. Alternatively, you can file the form online.
Let’s understand Form 15G in detail and learn how to claim a TDS waiver.
What is Form 15G
Form 15G is a declaration form. As an individual, you can submit this form to ensure that no tax is deducted at the source (TDS) from your interest income. However, you can submit this form only when your total income falls below the basic exemption limit, and you are not required to pay any tax. Let’s understand the eligibility criteria.
- The individual must be below 60 years of age.
- Only resident individuals and Hindu Undivided Families (HUFs) can submit Form 15G.
- The total income of the individual should not exceed the basic exemption limit.
- The tax liability for the financial year is zero.
For the uninitiated, the basic exemption limit for individuals below 60 years of age is Rs. 2,50,000 under the old income tax regime and Rs. 3,00,000 under the new regime.
Who cannot file Form 15G
If you are 60 years old or above, you must file Form 15H instead. Also, non-resident Indians (NRIs) are not eligible to use Form 15G, irrespective of the age. Furthermore, if your taxable income exceeds the basic exemption limit and you expect to pay taxes this year, you cannot claim a TDS waiver using this form.
When to submit Form 15G
Ideally, Form 15G should be submitted at the beginning of each financial year, preferably in April. This early filing helps in avoiding TDS on interest income throughout the year. Moreover, you are required to download Form 15G and file it every year, as it is only valid for the financial year in which it is submitted. You must note that if you cannot submit the form on time and TDS is deducted, you must claim a refund by filing your income tax returns (ITR).
Why Bajaj Finserv customers need Form 15G
Bajaj Finserv customers, particularly those holding fixed deposits (FDs), can reduce or eliminate the TDS on the interest earned from FDs. Let’s see how submitting Form 15G can help FD holders:
- Get a TDS waiver
If your total income is below the taxable limit, submitting Form 15G ensures no TDS is deducted from the interest earned on your FDs with Bajaj Finance. This way, you can receive the full interest without any deductions.
- More money in hand
By avoiding TDS, FD holders can maintain better liquidity. This will make more funds available for other investments or expenses.
- No need to file ITR only for claiming refunds
Since you have obtained a TDS waiver, there is no need to claim TDS refunds while filing your income tax returns. As per the provisions of the Income Tax Act, you are not required to file an ITR if your total income falls below the basic exemption limit.
Let’s say you failed to submit Form 15G for the year your tax liability was zero. In this case, TDS will still be deducted from your interest income. To claim the refund, you will need to file an ITR, even though your total income is below the taxable limit.
This additional step of filing an ITR to obtain the refund can be avoided by submitting Form 15G.
How to download Form 15G
As a Bajaj Finance FD holder, you can download Form 15Gfrom the Bajaj Finserv customer portal (My Account). This form can be submitted to your nearest Bajaj Finserv branch to claim a TDS waiver. Here’s how you can download Form 15G:
- Step 1: Log in to the customer portal using your registered mobile number and the OTP.
- Step 2: Enter your date of birth for verification purposes.
- Step 3: Once logged in, select the FD for which you want to download Form 15G.
- Step 4: Go to the ‘DOCUMENT CENTRE’ section to find all your documents.
- Step 5: Download the Form 15G for the chosen FD.
Alternatively, you can submit your Form 15G online and enjoy enhanced convenience.
How to submit Form 15G online for TDS waiver
Bajaj Finance offers a convenient online submission service for Form 15G through the Bajaj Finserv customer portal. Here’s how you can submit the TDS waiver online:
- Step 1: Visit the Bajaj Finserv Customer Portal.
- Step 2: Click on the ‘MY ACCOUNT’ section.
- Step 3: Enter your registered mobile number and the OTP.
- Step 4: Verify your details by entering the date of birth.
- Step 5: Once logged in, go to the ‘MY RELATIONS’ section and select your fixed deposit.
- Step 6: Click the ‘SUBMIT FORM 15G/H” option in the ‘QUICK ACTIONS’ section.
- Step 7: View your Form 15G/H and enter any additional information, if required.
- Step 8: Now, you will receive an OTP on your registered mobile number.
- Step 9: Verify the OTP and proceed with the submission.
Some common mistakes to avoid
Accurate filing of Form 15G is necessary to smoothly process your tax declaration. Let’s check out some common mistakes that you must avoid:
- Enter the correct PAN (Permanent Account Number). Make sure it matches the one in the income tax database.
- Fill out all required fields accurately; leaving any mandatory field blank can lead to rejection.
- Mention the correct financial year for which you are claiming a TDS waiver.
- Provide a reasonable estimate of your total income.
- When submitting multiple forms, ensure consistency in the information provided across all forms.
Conclusion
Form 15G is a self-declaration form. It helps individuals avoid TDS deductions on interest income if their total income falls below the taxable limit. For Bajaj Finance FD holders, submitting this form ensures they receive full interest without deductions. It helps maintain better liquidity and eliminates the need to file an ITR just to claim TDS refunds.
Eligible individuals under 60 who are Bajaj Finance FD holders can download Form 15G through their ‘My Account’ customer portal. The downloaded form must be submitted to the nearest Bajaj Finserv branch to claim a TDS waiver. Alternatively, the form can also be submitted online.
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