If you’re looking to claim your gratuity but don’t know where to start, this blog post is for you. Form 15G is a document that needs to be filled out in order to receive your gratuity payment, and we’ll walk you through the process step-by-step. By the end of this post, you’ll know everything you need to about Form 15G and how to fill it out correctly.
What is Form 15G?
Form 15G is a declaration that can be filed by an individual with their bank or financial institution in order to avoid the deduction of taxes on interest earned on their deposits. In order for an individual to be eligible to file Form 15G, they must meet all of the following criteria:
-They must be a resident of India.
-The interest earned on their deposit must be below the taxable threshold for their tax bracket. For example, for the 2020-2021 financial year, the threshold for individuals who are below the age of 60 is Rs. 2.5 lakhs.
-They must not have any other income that is liable for taxation (such as rental income, income from other sources, etc.).
-The form must be filed at the beginning of each financial year, or whenever there is a change in any of the aforementioned criteria.
What are the benefits of filling out Form 15G?
Filing Form 15G has several benefits:
-It helps individuals save on taxes, as they will only be taxed on the interest earned above the threshold amount specified for their tax bracket.
-It avoids the hassle of having to file multiple tax returns throughout the year – once Form 15G is filed, no further action needs to be taken in regards to taxes on interest earned on deposits.
-It helps banks and financial institutions keep track of their customers’ tax compliance status easily – customers who have filed Form 15G can be considered ‘low risk’ in terms of potential tax evasion.
Thus, it is beneficial for both individuals and banks/financial institutions for Form 15G to be filed correctly and on time.
How to fill out Form 15G.
The first step is to enter your personal information including your name, date of birth, and address. You will also need to provide your PAN (permanent account number) or Form 60/61 if you do not have a PAN.
Step 2: Enter your employment information.
In the second step, you will need to provide information about your employment including your employer’s name and address, your designation, and the date you started working at the company.
Step 3: Enter your bank account information.
In the third step, you will need to provide your bank account details including the account number, IFSC code, and branch name.
Step 4: Sign and date the form.
Once you have completed all the steps, you will need to sign and date the form before submitting it to your employer or bank.
Conclusion
Form 15G is an important form for those who are looking to claim their Gratuity Meaning. It is a simple form to fill out, and by doing so, you can ensure that you receive the money to that you are entitled to. There are four steps to filling out the form, and they are all easy to follow. Just be sure to enter your information accurately and sign and date the form before sending it off.
