Estimated income on form 15G (field no 16) for a fixed deposit means the estimated interest amount that you will get on your FD amount in a particular financial year. ( Your FD amount X Interest given by the bank for that Fy)
Similarly, if you are submitting form 15G for PF withdrawal then estimated income means the estimated PF claim amount which you are withdrawing. (You can check this amount in your PF passbook)
You have to mention these details in field no 16 of form 15G.
What is the estimated total income of P.Y in which income mentioned in column 16 to be included (Field 17)
Here you need to mention your estimated total annual income which can be your salary income, rental income, etc.. To which you need to add the amount mentioned in field 16.
Example 1 ( for Fixed Deposits)
If Mr “A” estimated salary for Fy 2020-21 is 2 Lakhs
And he is getting an interest amount for 45,000 Rs from his Fixed Deposit amount.
Then in field no 16 he should mention estimated income 45,000 Rs
And in field no 17 he should mention 2,00,000 + 45,000 = 2,45,000 Rs
Example 2 ( for PF withdrawal)
If Mr “A” salary for Fy 2020-21 is 1,80,000 Rs
And he is withdrawing for PF amount of 60,000 Rs
Now in field no 16 estimated income = 60,000 Rs
Field no 17 = 1,80,000 + 60,000 = 2,40,000
Note: Whenever you are submitting form 15G then make sure that your estimated income + estimated total annual income should be below income tax slab rate i.e 2,50,000 Rs
How do I know how much interest I can get on my FD amount
You can check the FD interest given by the bank in their website. Now calculate that interest rate on your invested FD amount.
Should I submit form 15G if the interest is below 40,000 Rs
No, you don’t need to submit form 15G if the interest amount is less than 40,000 Rs in a financial year.
What if I mention wrong estimated income on form 15G
You don’t need to mention the exact amount, but the amount should be nearer to the amounts mentioned on form 15G.
Any false representation on form 15G leads to 3 months imprisonment and fine under section 277 of the income tax act 1961.
Who is eligible for form 15G for fixed deposits
For resident individual investors of India whose age is below 60 yrs and the interest on FD in the financial year is above 40,000 Rs then they have to submit form 15G to avoid TDS. ( If their annual income is below income tax slab rate)
For sr citizens of age above 60 yrs the interest amount should be above 50,000 Rs.
Is form 15G compulsory?
No, it is not compulsory.
If you are not in income tax slab rate but you are getting the income from FDs or PF then it is better to submit form 15G to avoid TDS.
If you don’t submit form 15G then TDS will deduct from the interest amount in the case of FDs. Which is 10%.
Can I fill form 15G online ?
Yes, now every bank is providing online provision to submit form 15G, you can use this service in your bank’s internet banking portal.
What is the last date to submit form 15G?
You have to submit form 15G before 31st march of every financial year for FDs and RDs.
If you are withdrawing the FD amount in the middle of the year then you need to submit form 15G whenever you are withdrawing the FD amount.
Is form 15G mandatory for PF withdrawal above 50,000 Rs
If the total service of the employee is below 5 yrs and the PF claim amount is above 50,000Rs then form 15G is mandatory, otherwise, 10% TDS will be deducted from the PF claim amount.