Understanding Form 15G: A Guide for Bajaj Finserv Customers

Understanding Form 15G: A Guide for Bajaj Finserv Customers

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.

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.

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. 

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. 

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).