Tax exemption: Those who make Fixed Deposit (FD) in any bank have to submit the form every year. If you do not submit this form, then banks deduct TDS on the interest amount. Fixed deposit holders have to submit two forms- and Form 15H every year in the bank or wherever the FD is made. Form 15H is a declaration form under sub-section 1(C) of section 197A of the Income Tax Act, 1961. If a senior citizen is getting income from FD interest, can he fill 15H form or not. Here we are going to tell you how smart citizens can save tax.
Which form to fill
First of all, let us tell you that people below 60 years of age have to fill 15G form, which has a condition that no income tax should be made on you. Second, your total income should be less than 2.5 lakh.
How senior citizens can save tax
Above 60 years i.e. for senior citizens, 15H form will have to be filled. The condition of 15H is that no tax should be made on your income. There is no condition of basic exemption limit in this. If the interest is going above the basic exemption limit, but you will not be taxed if you do not have any other income. In this condition, you can go to the bank and fill 15H form, in which case the bank will not deduct your TDS and all your interest will come to your account.
