FD holders have to submit two forms 15G and 15H every year in the bank or wherever the FD is made. Have to deposit there. Understand it in this way, if the interest received in any business year exceeds a certain limit, then banks deduct TDS on that amount of interest.
Earlier this limit was Rs 10,000 for the financial year i.e. 2018-19 and Rs 50,000 for senior citizens. For FY 2019-20, this limit is Rs 40,000 and for senior citizens Rs 50,000. This is applicable for the year 2021-22, 2022-23.
Now let’s talk about 15G form.
- What is Form 15G: Form 15G is filled to avoid TDS on income. However, there are some conditions on the basis of which this form is filled.
- Form 15G is a declaration form under sub-sections 1 and 1(A) of section 197A of the Income Tax Act, 1961.
- Hindu Undivided Family, any person below the age of 60 years fills it. 15G should be deposited before the first payment of interest on FD.
- They have to be deposited in all those bank branches from where the money is being deposited. This form is submitted only by those whose taxable income is nil. The person should be an Indian citizen. The total income from interest during the financial year should be less than 2.5 lakhs.
After 15G form, now comes the matter of 15H form…
- What is Form 15H (What is form 15H): This form can be filled by people of 60 years or more. Form 15H is a declaration form under sub-section 1 (C) of Income Tax Act, 1961 under section 197A. Is.
- Last year’s estimated tax should be zero. The individual has not filed income tax return last year because his income is less than the taxable amount.
- The person has to submit this form to all the bank branches from where he is collecting the interest. 15H form should be submitted before the first interest is paid. This is not mandatory but it can prevent TDS deduction from the bank.
- Form 15H has to be submitted if the interest income from any source other than deposits such as interest income on loans, advances, debentures, BONDS etc. exceeds Rs 5,000.
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