Do I have to file an income tax return (ITR) if I have submitted Form 15G?

Do I have to file an income tax return (ITR) if I have submitted Form 15G?

Question: I am a student and have no income except the interest which I get from bank FD. The money was given by my father. Can I give form 15G to avoid TDS? If I submit form 15G will I have to file an income tax return?

Answer: In case you are a minor, all the passive income that you earn is required to be clubbed with the income of a parent with a higher income. So in case you are a minor, you cannot submit form 15G as the interest earned by you will be taxed in the hands of such parent. In case you are a major, the interest income will be taxable in your hand. The transaction of gift made by your father does not have any tax implication either for you or for your father at the time of making the gift. In case your interest income for the year is below the taxable limit of ₹2.50 lakhs and you do not have tax liability; you can submit form no. 15 G to the bank for paying you interest without deduction of tax at source. 

Please do not forget to furnish details of your PAN number while submitting form no. 15G failing which the bank will deduct tax @ 20% instead of the regular rate of TDS of 10%. Please note you are not required to file ITR just because you have submitted form 15G. The conditions under which an individual is required to file an ITR are independent of the provisions of submission of form no. 15G. Balwant Jain is a tax and investment expert and can be reached at [email protected] and @jainbalwant on his X handle.

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Updated: 21 Sep 2023, 07:09 AM IST

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