Tax Saving Tips: With changing times, there are many investment options available in the market. But, even today Fixed Deposit Scheme is a popular investment option. If you also invest in fixed deposit scheme, then it is important to keep some things in mind. With this you can save tax on the interest earned on FD.
Otherwise money will be deducted from your account later. If you have invested in FD scheme in any bank, then it is necessary to fill Form 15G and Form 15H for tax saving on FD. Without this, your TDS will be deducted on the interest earned on FD.
Money will be deducted from FD
According to income tax rules, customers investing in FD schemes have to submit Form 15G and Form 15H to the bank at the beginning of every financial year. People below 60 years of age have to fill and submit Form 15G. At the same time, people above 60 years of age have to claim tax exemption by submitting Form 15H. TDS will not be deducted by submitting these forms.
Who can submit Form 15G and Form 15H?
People whose age is less than 60 years can fill and submit Form 15G. At the same time, people above 60 years of age can submit Form 15H to claim tax exemption on fixed deposits. If you earn more than Rs 40,000 interest on FD in a financial year, then in such a situation you can claim tax exemption through this form. You will not have to pay TDS on submission of this form. If you do not do this, you will have to pay tax on interest earned on more than Rs 40,000.
