Ever since investing in the stock market has become easy and accessible, the number of investors has also increased rapidly, but even today the middle class and especially the elderly consider Fixed Deposit (FD) to be the safest investment.
Do you know that if you have got FD done then you have to submit two forms 15G and 15H every year to the bank or from where you have got FD done. If the interest received in a business year exceeds a certain limit, banks deduct TDS on the amount of that interest. So let’s know what is this form 15G and 15H.
What is Form 15G
This form is used to save tax. By filling this form, you can save TDS from being deducted on your income. The thing to note here is that this form is filled only on the basis of certain conditions.
Form 15G is a declaration form under sub-sections 1 and 1(A) of section 197A under the Income Tax Act, 1961. Any person of Hindu Undivided Family whose age is less than 60 years can fill this form.
Here you need to know that this form has to be submitted before the interest you get on FD. This form has to be submitted to the branch of all the banks from where the money is being deposited. This form can be submitted only by those whose taxable income is nil and the total income from interest during the financial year is less than 2.5 lakhs.
What is Form 15H
People who are 60 years or older can fill this form. This form also comes under section 197A under the Income Tax Act 1961 like Form 15G. However, it is a declaration form covered under sub-section 1(c) of section 197A.
According to the conditions, the previous year’s estimated tax of the beneficiary should be nil and he should not have filed income tax return in the previous year.
Like the previous form, here also you have to submit this form to all the bank branches from where the interest is being collected. Here also you have to submit this form before getting the interest. Though not a guarantee, but it can prevent TDS deduction from the bank.
