Form 15G
This query is : Resolved
14 March 2010
1. If a fixed deposit is made by earning member in his spouse name, interest is clubbed and taxable under other source. In this case, Form 15G can be filed only when the income of the person who made deposit is not taxable and not that of the spouse on whom the deposit is made. Is mu understanding right??
2. When a housewife earns income through sources such as taking tuition at home, other classes and makes deposit in her name, whatz the taxability in respect of such interest deposit?
if total income is less than taxable amount but the interest exceeds 5000 and attracts TDS?
What should be specified in the occupation column in form 15G for such person?
2. When a housewife earns income through sources such as taking tuition at home, other classes and makes deposit in her name, whatz the taxability in respect of such interest deposit?
if total income is less than taxable amount but the interest exceeds 5000 and attracts TDS?
What should be specified in the occupation column in form 15G for such person?
14 March 2010
1. If a fixed deposit is made by earning member in his spouse name, interest is clubbed and taxable under other source. In this case, Form 15G can be filed only when the income of the person who made deposit is not taxable and not that of the spouse on whom the deposit is made. Is mu understanding right??
2. When a housewife earns income through sources such as taking tuition at home, other classes and makes deposit in her name, whatz the taxability in respect of such interest deposit?
If total income is less than taxable amount but the interest exceeds 5000 and attracts TDS, can she file Form G?
What should be specified in the occupation column in form 15G for such person?
2. When a housewife earns income through sources such as taking tuition at home, other classes and makes deposit in her name, whatz the taxability in respect of such interest deposit?
If total income is less than taxable amount but the interest exceeds 5000 and attracts TDS, can she file Form G?
What should be specified in the occupation column in form 15G for such person?
14 March 2010
1. your understanding is right.
2.
the interest income is taxable in the hands of housewife. Yes , she can file form 15-G.
2.
the interest income is taxable in the hands of housewife. Yes , she can file form 15-G.
15 March 2010
Thanks sir:)
with regard to ques 2, what should she specify in the occupation column? How can she prove her source of income, if enquired?
with regard to ques 2, what should she specify in the occupation column? How can she prove her source of income, if enquired?
25 July 2024
Let's address your questions step by step:
### Question 1: Form 15G for Fixed Deposit in Spouse's Name
1. **Understanding**: If a fixed deposit is made by the earning member in their spouse's name and the interest is clubbed and taxable under the earning member's income (under the head 'Income from Other Sources'), Form 15G can be filed by the earning member only if their total income for the relevant financial year is below the taxable threshold. The taxability is assessed based on the earning member's income, not the spouse's income.
- **Correct Understanding**: Yes, your understanding is correct. Form 15G can be filed by the earning member to prevent TDS deduction on the interest income from the fixed deposit in the spouse's name, provided the earning member's total income does not exceed the taxable limit.
### Question 2: Taxability of Interest Income for a Housewife
2. **Taxability**: If a housewife earns income through sources like tuition or other classes and deposits it in her own name, the interest earned on such deposits is taxable under 'Income from Other Sources'. Here are the key points:
- **Total Income Below Taxable Amount**: If her total income, including the interest income, is below the taxable threshold (after considering deductions and exemptions), she can submit Form 15G to avoid TDS deduction on interest income exceeding Rs. 5,000.
- **Occupation Column in Form 15G**: In the occupation column of Form 15G, the housewife should specify her occupation truthfully, such as "Housewife", "Self-employed - Tutor", or "Education Provider". This declaration should reflect her actual source of income, i.e., providing tuition or classes.
- **Proof of Income**: If her income is questioned, she can provide proof such as receipts or invoices for tuition fees received, bank statements showing deposits, or any other relevant documents that substantiate her income from providing tuition or classes.
### Additional Points:
- **Tax Deducted at Source (TDS)**: If the interest income from deposits exceeds Rs. 5,000 per year, the bank or financial institution will deduct TDS at the rate of 10% on the interest amount exceeding Rs. 5,000 if Form 15G/H is not submitted.
- **Filing Form 15G**: Ensure that Form 15G is correctly filled and submitted to the bank or financial institution where the deposit is held. It is important to review the eligibility criteria and ensure compliance with income tax regulations to avoid any penalties or incorrect deductions.
By following these guidelines, individuals can effectively manage their tax liabilities on interest income and ensure compliance with Form 15G submission requirements based on their income situation. If there are any uncertainties, consulting with a tax advisor or financial consultant would be beneficial for personalized advice.
### Question 1: Form 15G for Fixed Deposit in Spouse's Name
1. **Understanding**: If a fixed deposit is made by the earning member in their spouse's name and the interest is clubbed and taxable under the earning member's income (under the head 'Income from Other Sources'), Form 15G can be filed by the earning member only if their total income for the relevant financial year is below the taxable threshold. The taxability is assessed based on the earning member's income, not the spouse's income.
- **Correct Understanding**: Yes, your understanding is correct. Form 15G can be filed by the earning member to prevent TDS deduction on the interest income from the fixed deposit in the spouse's name, provided the earning member's total income does not exceed the taxable limit.
### Question 2: Taxability of Interest Income for a Housewife
2. **Taxability**: If a housewife earns income through sources like tuition or other classes and deposits it in her own name, the interest earned on such deposits is taxable under 'Income from Other Sources'. Here are the key points:
- **Total Income Below Taxable Amount**: If her total income, including the interest income, is below the taxable threshold (after considering deductions and exemptions), she can submit Form 15G to avoid TDS deduction on interest income exceeding Rs. 5,000.
- **Occupation Column in Form 15G**: In the occupation column of Form 15G, the housewife should specify her occupation truthfully, such as "Housewife", "Self-employed - Tutor", or "Education Provider". This declaration should reflect her actual source of income, i.e., providing tuition or classes.
- **Proof of Income**: If her income is questioned, she can provide proof such as receipts or invoices for tuition fees received, bank statements showing deposits, or any other relevant documents that substantiate her income from providing tuition or classes.
### Additional Points:
- **Tax Deducted at Source (TDS)**: If the interest income from deposits exceeds Rs. 5,000 per year, the bank or financial institution will deduct TDS at the rate of 10% on the interest amount exceeding Rs. 5,000 if Form 15G/H is not submitted.
- **Filing Form 15G**: Ensure that Form 15G is correctly filled and submitted to the bank or financial institution where the deposit is held. It is important to review the eligibility criteria and ensure compliance with income tax regulations to avoid any penalties or incorrect deductions.
By following these guidelines, individuals can effectively manage their tax liabilities on interest income and ensure compliance with Form 15G submission requirements based on their income situation. If there are any uncertainties, consulting with a tax advisor or financial consultant would be beneficial for personalized advice.
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