Understanding and using Form 15G and Form 15H | Fusion - WeRIndia

To ensure the bank does not deduct TDS on your interest income if your total income is not taxable, you can take the following steps:

Assess Eligibility for Form 15G or Form 15H: First, check if you are eligible to submit Form 15G or Form 15H. As summarized earlier, Form 15G is for individuals (other than senior citizens), HUFs, trusts, or other assessees under 60 years whose tax on total income is nil and whose total interest income is within the basic exemption limit.

Form 15H is for senior citizens (60 years or older) where the tax on total income is nil, but there is no cap on the amount of interest income as long as the taxable income after deductions remains below the taxable threshold.

Obtain and Fill the Form: Obtain Form 15G or Form 15H from your bank or download it from the bank’s website if they offer an online submission option. Fill out the form accurately, providing details such as PAN, estimated total income, estimated total interest income, etc.

Submit Form 15G or 15H to Your Bank: Submit the completed form to your bank at the beginning of the financial year, or at the time of opening a new fixed deposit, to ensure that TDS is not deducted right from the first interest payment cycle. If submitting online, follow the bank’s instructions on their portal.

Keep Track of Submissions: Keep a record of when and to which branches or accounts you have submitted these forms. Some banks may require separate forms for each branch or type of deposit.

Monitor Your Accounts: Check your account statements regularly to confirm that TDS has not been deducted after the submission of Form 15G or Form 15H. If you find TDS has been deducted mistakenly, contact your bank for rectification.

Renew Annually: Remember, Form 15G and Form 15H are valid only for one financial year. You need to submit these forms every year as long as your eligibility criteria (income below taxable limit) remain the same.

File Income Tax Returns if Necessary: If despite submitting Form 15G or 15H, TDS is deducted (perhaps due to submission errors or other reasons), you may claim a refund by filing your income tax return. Ensure that all income and TDS details are correctly reported in your return.

By following these steps, you can effectively manage your tax obligations and avoid unnecessary TDS deductions on your interest income when your total income is below the taxable threshold.

Photo by Kelly Sikkema on Unsplash (Free for commercial use)

Image Reference: https://unsplash.com/photos/stack-of-papers-flat-lay-photography-tQQ4BwN_UFs