Form 15 g submitted & income is taxable

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Harsh Rathod

Engineer

27 Points Posted on 02 February 2015

I have certain number of FDs in SBI. In beginning of financial year I had submitted form 15 G to bank. If I understand it right, even if the interest on FDs go beyond 10,000 Bank will NOT deduct TDS since I have submitted form 15 G. By submitting form 15 G , I am promising to my bank that my income will not come under taxable slab which is my assumption at beginning of financial year.

What if at the end of financial year, my total income become eligible for taxation ?

Bank will assume that since my income is not in taxable range, it will not deduct TDS. If my income becomes eligible for taxation, will I be penalized for making a false declaration with bank by submitting form 15 G ?

Thanks in Advance. Please Respond.

Replies (2)

Harsh Rathod

Engineer

27 Points Posted on 03 February 2015

Hi,

Thanks for the reply.

Name of the bank : SBI

Now ,Net Income : (my salary + other sources of income - Deduction) goes beyond the taxable limit. So as you said,

1. Shall I have to pay tax + interest on non payment on advance tax ?

2. And If I increase my deduction to full limit 1.5 Lac, thereby which net income falls in NON-taxable slab, then it would be perfectly fine as per my declaration of form 15 G...correct ?

Thanks in Advance.

Arif Ali

Apt Co Advisory

1170 Points Posted on 03 February 2015

If your tax goes beyond Rs.10000, then you have to pay advance tax.

and since you would have not paid the advance tax, then interest will be charged. But if your tax liability is upto 10000, then no any problem. you have to file ITR only even if your tax is nil due to deduction under section 80C and other.