Save TDS on FD Interest with Form 15G and 15H💸
Decoding 15G/15H for all taxpayers.
It is true that when there is a will, there is a way, and just like that, with the right source, captivating knowledge and tax experts behind all tax-related information, you will always find the best ways to save on taxes and interest payments. With Form 15G and 15H, say hello to savings on FD interest! Continue reading to know how it works!
1) TDS on FDs
Banks are liable to deduct TDS if the interest being paid by them exceeds Rs. 40,000. For senior citizens, this limit is Rs. 50,000. No TDS shall be deducted if the amount is less than prescribed limits. TDS is deducted at 10% on the interest earned on fixed deposits in case the policyholder has submitted his PAN details with the bank. Where PAN has not been submitted, TDS shall be deducted at 20%.
To ensure that the bank does not charge TDS on your interest income, you must inform them beforehand. For this, you are required to submit Forms 15G/15H within the prescribed time.
2) What exactly is Form 15G?
Form 15G is a declaration that fixed deposit holders (individuals under the age of 60 and HUFs) can submit to the banks stating that their income does not exceed the basic exemption limit, and requesting the banks to not deduct TDS on their interest income for the fiscal year.
3) Criteria for Form 15G:
a) Form 15G can be filed by an individual taxpayer under the age of 60, an HUF, or a Trust.
b) The form must be submitted with the bank before the prescribed deadline. It is advised to submit the form in the beginning of the financial year itself.
c) The facility is solely available to Indian residents.
d) This form can only be submitted by an individual whose tax payable on the total income is zero.
4) What exactly is Form 15H?
Form 15H is a self-declaration form that senior citizens aged 60 and above can use to avoid TDS on interest generated from fixed deposits (FD) and recurrent deposits (RD). Form 15H is similar to Form 15G, just the difference is it is available for senior citizens.
This declaration allows you to get the entire amount of interest on your deposits without having to pay any taxes
Form 15H's Key Characteristics
a) Individuals over the age of 60 may submit Form 15H.
b) Form 15H is also applicable for residents.
c) The form can be submitted either physically or manually.
Saving on taxes and interest payments is always a priority for taxpayers. With the right knowledge and tax experts behind you, you can always find the best ways to save on taxes and maximize your savings. So, make sure to use Form 15G and 15H to your advantage and take control of your finances today. By submitting these forms to your bank before the deadline, you can ensure that you receive the full amount of interest earned without having to pay any taxes.
At JJ Tax, our team of experts is always ready to assist you with any tax-related queries and help you save on your taxes. Stay tuned for more informative newsletters from us!