How to correct the mistake of misuse of 15g
This query is : Resolved
12 July 2017
Sir I have filled the 15G form in bank for the interest of Rs 15854 on FD. But I my salary come under income tax. It is reflecting in 26AS now .what will I do now. Please help me.
12 July 2017
Not understand properly.
28 July 2024
If you’ve submitted Form 15G to the bank but later realize that your total income (including FD interest) exceeds the basic exemption limit and thus, you are liable to pay tax, here are the steps you should take to correct the situation:
### **1. Understand the Implications**
Form 15G is used to ensure that no TDS is deducted on interest income if your total taxable income is below the taxable limit. If you’ve submitted this form but later your total income exceeds the limit, then the bank should have deducted TDS on the interest income.
### **2. Contact the Bank**
1. **Inform the Bank**: Contact your bank where you submitted Form 15G and inform them of the mistake. Explain that your total income is taxable and that TDS should have been deducted.
2. **Request for TDS Deduction**: If possible, request the bank to deduct TDS from the interest earned on the FD. If the bank has already credited the interest amount without deducting TDS, they may not be able to adjust it directly now.
### **3. File Your Income Tax Return Correctly**
1. **Include All Income**: In your Income Tax Return (ITR), ensure you include all your income, including FD interest, salary, and any other sources. Since the TDS was not deducted, you should include the FD interest under “Income from Other Sources.”
2. **Pay the Tax Due**: Calculate the total tax liability based on your total income and pay the tax due.
3. **Claim TDS Credit**: If TDS has been deducted on any other income, include that in your return. Since no TDS was deducted on the FD interest, you won’t be able to claim TDS credit for it, but you need to pay the tax on that income.
### **4. Rectification of Return (if needed)**
1. **File a Revised Return**: If you have already filed your ITR and later realize the error (like forgetting to include FD interest or any other income), file a revised return to correct it. Ensure that the revised return includes the FD interest and the correct tax calculation.
2. **Form 26AS**: Check Form 26AS for any TDS entries. If the TDS was not deducted and reflected incorrectly in Form 26AS, ensure to address it while filing your return.
### **5. Consider Penalties and Interest**
1. **Late Payment Interest**: If you have delayed the tax payment due to this mistake, you may be liable to pay interest under Section 234A/B/C of the Income Tax Act for the late payment of taxes.
2. **Penalties**: Ensure compliance to avoid any penalties for incorrect submission of Form 15G.
### **6. Keep Documentation**
1. **Maintain Records**: Keep a record of all communications with the bank, as well as any revised returns or payments made to the Income Tax Department.
2. **Proof of Income**: Ensure you have all necessary documentation and proof of income, including FD statements and salary slips, to support your return.
### **Summary of Steps**
1. **Inform the Bank**: Notify them about the mistake and request for TDS deduction.
2. **File Accurate ITR**: Include FD interest and pay the tax due.
3. **Revise Return**: If needed, file a revised return to include the missed income.
4. **Consider Penalties**: Pay any applicable interest or penalties for late payment.
5. **Document Everything**: Keep all records related to the issue.
By following these steps, you can correct the mistake related to Form 15G and ensure compliance with tax regulations.
### **1. Understand the Implications**
Form 15G is used to ensure that no TDS is deducted on interest income if your total taxable income is below the taxable limit. If you’ve submitted this form but later your total income exceeds the limit, then the bank should have deducted TDS on the interest income.
### **2. Contact the Bank**
1. **Inform the Bank**: Contact your bank where you submitted Form 15G and inform them of the mistake. Explain that your total income is taxable and that TDS should have been deducted.
2. **Request for TDS Deduction**: If possible, request the bank to deduct TDS from the interest earned on the FD. If the bank has already credited the interest amount without deducting TDS, they may not be able to adjust it directly now.
### **3. File Your Income Tax Return Correctly**
1. **Include All Income**: In your Income Tax Return (ITR), ensure you include all your income, including FD interest, salary, and any other sources. Since the TDS was not deducted, you should include the FD interest under “Income from Other Sources.”
2. **Pay the Tax Due**: Calculate the total tax liability based on your total income and pay the tax due.
3. **Claim TDS Credit**: If TDS has been deducted on any other income, include that in your return. Since no TDS was deducted on the FD interest, you won’t be able to claim TDS credit for it, but you need to pay the tax on that income.
### **4. Rectification of Return (if needed)**
1. **File a Revised Return**: If you have already filed your ITR and later realize the error (like forgetting to include FD interest or any other income), file a revised return to correct it. Ensure that the revised return includes the FD interest and the correct tax calculation.
2. **Form 26AS**: Check Form 26AS for any TDS entries. If the TDS was not deducted and reflected incorrectly in Form 26AS, ensure to address it while filing your return.
### **5. Consider Penalties and Interest**
1. **Late Payment Interest**: If you have delayed the tax payment due to this mistake, you may be liable to pay interest under Section 234A/B/C of the Income Tax Act for the late payment of taxes.
2. **Penalties**: Ensure compliance to avoid any penalties for incorrect submission of Form 15G.
### **6. Keep Documentation**
1. **Maintain Records**: Keep a record of all communications with the bank, as well as any revised returns or payments made to the Income Tax Department.
2. **Proof of Income**: Ensure you have all necessary documentation and proof of income, including FD statements and salary slips, to support your return.
### **Summary of Steps**
1. **Inform the Bank**: Notify them about the mistake and request for TDS deduction.
2. **File Accurate ITR**: Include FD interest and pay the tax due.
3. **Revise Return**: If needed, file a revised return to include the missed income.
4. **Consider Penalties**: Pay any applicable interest or penalties for late payment.
5. **Document Everything**: Keep all records related to the issue.
By following these steps, you can correct the mistake related to Form 15G and ensure compliance with tax regulations.
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