Is your bank deducting TDS on the interest income earned on your bank deposits? Submitting Form 15G/H to your bank can solve your problem.
In this guide by H&R Block, learn how to prevent your bank from taking your money!
Bank deducts TDS when your interest income is above Rs 10,000 in a financial year. You can submit Form 15G requesting your bank not to deduct any excess tax if your interest income earned is less than the prescribed limit.
Form 15G/H is a self-declaration form u/s 197A of the Income Tax Act, 1961, through which you declare that your estimated annual income will not be taxable and hence you request the bank not to deduct TDS.
SIDE NOTE: The difference between Form 15G and Form 15H is that the latter is only meant for senior citizens, and you must provide your date of birth, instead of status and residential status in it.
Refer to the table given below:
|Eligibility Criteria||Form 15G||Form 15H|
|Age||Less than 60 years||Only for senior (60 – 79 years) and super senior citizens (80 years & above)|
|PAN card required||Yes||Yes|
|Status (type of assessee)||Individual/ HUF/ Trust/ any other assessee, but not a company or a firm||Individual|
(FY 2018-19 & AY 2019-20)
|Up to Rs 2,50,000||Up to Rs 3,00,000 for senior citizens, and up to Rs 5,00,000 for super senior citizens|
Let’s understand the process of filling Form 15G:
You can submit Form 15G or 15H either online or offline. To submit it offline, you must visit your bank. Form 15G/H can be submitted online through your bank’s net banking portal, which is a more convenient way.
In addition to TDS on interest income, these forms can also be submitted to save TDS in the following situations:
A. Assessing Officer (AO) code helps to identify your PAN’s jurisdiction, appropriate tax authority and relevant tax rules applicable to you based on your category.
For example: The AO code may differ between salaried individuals, Companies, Army/ Defence personnel etc.
A. There is no such fixed last date, but it is advisable to submit your Form 15G in the beginning of financial year during April to your Bank to prevent any excess TDS deduction.
A. No NRI’s are not eligible to submit this form as it’s applicable to resident Indians only. For NRI’s, the Income Tax Law has provided a different procedure of submitting a request to their Jurisdictional Tax Officer requesting for waiver.
The purpose of Form 15G/H is to ensure that you do not have to pay TDS when your total income is less than the taxable limit. Submitting it early can save you from the hassle of claiming a refund later, when you file your taxes. With the net banking option, you can easily complete this process from your home!