According to Section 194A of the Income Tax Act 1961, all the customers are liable to pay tax if they are receiving an interest of more than INR 10,000 from the bank. In case your total income is less than the taxable limit, you can request the bank to not deduct TDS on your income, by submitting Form 15G or 15H. No matter how much people earn, they are always eager to save TDS. For lower or nil deduction of TDS on the interest earned on income, a customer is required to fill and submit the self-declaration forms 15G or 15H.
Download Forms : 15G & 15H (PDF format from Income Tax India website)
Prerequisites for Form 15G and Form 15H
Form 15G is for citizens under the age of 60 years, while Form 15H is for senior citizens i.e. Those who are 60 years or above. Also, in both the cases the applicant should be a resident of India.
Important Note
Both the forms are valid only for a single financial year. Hence, you are required to submit the form at the starting of each financial year. Make sure that you submit the form as soon as the financial year starts so that banks do not start deducting TDS on your income.
Recommended Read :
- What is TDS (Tax Deducted At Source)?
- What is Indexation?
- What is Tax Redemption?
- What is Capital Gains Tax?
- What is Education Cess?
- Tax Forms 15G 15H
- Fixed Deposit and Income Tax Payment
- Tax Impact On Recurring Deposit Tax On Rd
- What is Tax Saving Fixed Deposit?
- How to Save Tax On Fixed Deposit Interest?
- What is The Tax Impact On Gold Investments?
- How to Avoid TDS On RD and FD?
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