Form 15 G

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Shabu (Querist)
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05 March 2009 I have opened a new savings account in a nationalised bank. Is it mandatory that I have to fill From 15G? What is the purpose of Form 15G? When is Form 15 G used and the benefits one can derive from it? What is the Banks interest in the Form 15 G?

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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05 March 2009 Form 15G is given by an individual to a bank for no deduction of TDS on interest paid since the income of account-holder is below the income chargeable to tax.

CA.SHAHZAD SAYYED

CA.SHAHZAD SAYYED (Expert)
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05 March 2009 Form 15G is a kind of intimation for not deducting TDS it's not mandatory for new opening of A/c unless you earn some income like Interest on deposit etc,
Form 15G is issued by a person whose income is below the basic threshold limit
by giving this form one can avoid TDS on his income,The Bank Interest behind demanding this form is claiming the expences/payment as deduction for their income computation

Shabu

Shabu (Querist)
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05 March 2009 Form 15 G has many columns. While filling the form what are the columns which is to be filled if I don't have any investments other than an FD of 1 Lakh? Is it wise to fill the form 15 G at the time of opening the account to avoid TDS? If not when is it to be filled?