Both forms are valid for one year. At the beginning of the year, these forms should be submitted to your financier. Before filling the form, make sure that your financier has not deducted tax.
What is 15G and 15H form
You must have heard about the 15G and 15H forms. You will also know that both these forms are directly related to Fixed Deposit (FD). But do you know how these forms are filled and how this helps in saving TDS (tax deduction at source).
Both these forms are related to FD. Due to the attractive interest and returns on FD, people consider it as the best way of investment. You will also know that you have to pay tax on the return received on FD. The Reserve Bank has set a threshold threshold of tax, which cuts the TDS on going up. TDS is also a part of income tax. The threshold limit of TDS was earlier 10 thousand rupees, which has been increased to 40 thousand in this time budget. This limit is for banks and post office deposits. If you want to avoid TDS, then you have to fill 15G and 15H form.
What is 15G Form
Form 15G is filled to avoid TDS deduction on income. However, there are some conditions on which this form is filled. Let’s know who can fill this form-
- An individual (Indian citizen) or joint Hindu family or trust can fill this form, but it is not valid for any company or firm.
- People below 60 years can fill this form.
- Tax liability on total income should be zero.
In one year, the interest earned should be less than the tax exemption limit, which is Rs 2.5 lakh.
What is 15H form
Those who are more than 60 years of age can fill the 15H form to avoid TDS deduction. The following conditions are for this.
- An Indian citizen can fill this form.
- The person should be at least 60 years old.
- Tax liability on total earnings should be zero
How to fill 15H and 15G forms
- Some basic information is asked in both the forms, fill it carefully.
- Attach a copy of PAN with tax declaration.
- Submit this form to your financier.
If you want to avoid the long queues and congestion of banks, then you can easily do this work online. Both forms are valid for one year. At the beginning of the year, these forms should be submitted to your financier. Before filling the form, make sure that your financier has not deducted the tax because the bank will not refund you. To withdraw your TDS money from the bank, you have to fill the ITR.
Help in tax deduction
If the annual income from a person’s interest is more than 10 thousand rupees, then the bank deducts TDS. To calculate this limit, the bank looks at the deposits in all the branches. If the total income of a person is less than the taxable limit, then he can fill the form 15G or 15H. Through this form, the bank is told that TDS should not be deducted on the amount of interest. Form 16, Form 16A, Form 16B and Form 16C are TDS certificates. A TDS certificate is issued on behalf of the TDS deductor. In the context of a fixed deposit, Form 16A is issued by the bank.
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