These forms are the self-declaration submitted to bank for
non-deduction of tax on interest on fixed deposits. Many people don’t
know or they are confused about the eligibility criteria and time limits for
filing 15G/ 15H.
When TDS is deducted by banks?
In case of Interest from fixed deposits, the threshold limit
above which banks are require to deduct TDS at the time of payment/ credit is Rs.10,000.
Thus once the aggregate amount of interest reaches above Rs.10,000, banks start
deducting TDS at time of payment/ credit.
Why submit 15G and 15H Forms?
By submitting 15G/ 15H forms, you are asking the banker not to
deduct TDS on interest income from fixed deposits. But beware of the eligibility
criteria’s attached with the submission of these forms as non-compliance or
incorrect compliance of any of the attached conditions can lead to severe
penalties.
15G Form:
He
should be Individual/ HUF;
Person should be resident of India;
He must
have Permanent Account Number (PAN);
Tax on
estimated total income (including the interest from fixed deposit) at the end
of the year should be NIL;
Total
interest income to be earned should be less than basic exemption limit (Rs.250000
for F.Y. 2017-18)
15H Form:
Persons aged 60 years or more are eligible to submit this form. In
addition should adhere to attached conditions:
Person
should be resident of India;
He
should be Individual/ HUF;
He must
have Permanent Account Number (PAN);
Tax
on estimated total income (including the interest from fixed deposit) at the
end of the year should be NIL;
No comments:
Post a Comment