Is 15G mandatory or voluntary?

413 views 9 replies

gunturboy26

Self Employed

217 Points Joined December 2015

My friend is earning income from fixed deposits, he failed to submit 15G for FY 2015-2016, so bank had cut TDS, so we have claimed for the TDS refund for the amount in 26AS and it was refunded.

This FY also, some deposits got matured, interest is given and TDS is cut but not shown in 26AS. So for the active deposits and if he opens a new one, should we submit 15G so that no TDS will be cut or claim for the total TDS after the FY is over, just like the previous FY.

Is it mandotory to file 15G or voluntary and one can always claim for the refund after the FY is over?

Replies (9)

Kajal Jain

Freelancer-Chartered Accountant

551 Points Joined July 2008

filing 15G is not mandatory as such...
but in case ur income is not exceeding the taxable limit of 2.5lakhs thn submit 15G ..orelse .. getting refund after filing IT returns is always an option
But now since you have already started filing IT returns...better continue and comply

Rahul Shah

Assistant Chartered Accountant

196 Points Joined October 2009

It is always advidsable to file return & claim the TDS as Refund. from the your case in current year this might be possible that your PAN no is not updated with bank. so you will have to discuss this matter to your bank they will Revise the TDS return of bank & than after your TDS Deducted is shown in 26AS

gunturboy26

Self Employed

217 Points Joined December 2015

Originally posted by : Kajal Jain
	filing 15G is not mandatory as such...but in case ur income is not exceeding the taxable limit of 2.5lakhs thn submit 15G ..orelse .. getting refund after filing IT returns is always an option But now since you have already started filing IT returns...better continue and comply

We will continue filing. Thank you for the information.

gunturboy26

Self Employed

217 Points Joined December 2015

Originally posted by : Rahul Shah
	It is always advidsable to file return & claim the TDS as Refund. from the your case in current year this might be possible that your PAN no is not updated with bank. so you will have to discuss this matter to your bank they will Revise the TDS return of bank & than after your TDS Deducted is shown in 26AS

The PAN is updated, only 10% TDS was cut. Only the latest TDS cut is not shown in 26AS, yet. We will check again after some days. Thank you for the reply.

gunturboy26

Self Employed

217 Points Joined December 2015

We got the TDS refund in 25 days, so we can file ITR next year also and claim for the refund.

But my question is, should we first approach the bank and if even after this, TDS is cut then we should go to IT department or we can directly deal with IT department without bothering about 15G.

Is it like a first step and second step or it does not matter, the choice is ours?

Kajal Jain

Freelancer-Chartered Accountant

551 Points Joined July 2008

if the TDs amount is material enough...that we feel delay in refund will cause u loss of interest thn file 15G..
orelse...since u have to continue filling ur return..don't file 15G..
15G is a form that you need to sign and submit to the bank..which is again a 10/15 mins job...

Kajal Jain

Freelancer-Chartered Accountant

551 Points Joined July 2008

the choice is urs....

gunturboy26

Self Employed

217 Points Joined December 2015

Originally posted by : Kajal Jain
	if the TDs amount is material enough...that we feel delay in refund will cause u loss of interest thn file 15G..orelse...since u have to continue filling ur return..don't file 15G..15G is a form that you need to sign and submit to the bank..which is again a 10/15 mins job...

It was 10,000 last time, should be the same next year too. But they did give some extra money too as interest, also it was fast, so we could do it again without any problem. And we will continue filing ITR, for the future, when and where it would be needed. Thank you for the information.