Save TDS on Interest Income with Forms 15G and 15H

Save TDS on Interest Income with Forms 15G and 15H

Summary – Are you wondering how to save TDS? Read on and know the role of Forms 15G and 15H and how they can help you!

What do you to ensure that your bank does deduct Tax Deducted at Source (TDS) on the interest if your total income is not taxable? 

You need to know that banks need to deduct TDS when your interest income is more than Rs.10,000 in a year. The bank also includes deposits kept in all branches to compute the limit.

However, if your income is below the taxable limit, you can easily submit Form 15G and 15H to your bank to initiate the request not to deduct TDS on the interest.

Here’s a difference between 15g and 15h form. This post will cover some information on what is Form 15G and Form 15H and multiple aspects around it. Let’s know more:

What is Form 15G and Form 15H?

You can submit the Form 15G and Form 15H to make sure that there is no Tax Deducted at Source (TDS) that’s deducted on your income if you meet some terms.

While applying for these forms, you need to have a PAN Card. Some banks also let you fill and submit these forms online via the website of a bank.

You also need to know that the Form 15H is for senior citizens and on the other hand, everyone is eligible to use the Form 15G.

Once you submit these two forms, you will be able to receive the benefits of Form 15G/15H to help you save TDS for a financial year. Thus, now that you know how to save TDS on your interest income, you can submit these forms every year.

Once the financial year starts, the submission of these forms early will ensure that there is no TDS deduction from your banks. 

What conditions you should fulfil to submit the Form 15G?
    You are either an individual / HUF /Trust or another assessee but not a firm or company
    You should be a resident of India
    Your age should less than 60 years
    The tax calculated on your total income is zero
    The total interest income for the year is lesser than the basic exemption limit for the year (Rs.25,000 for a 2017-18 financial year) and 2018-2019 assessment    year

What conditions to fulfil while submitting the Form 15H?
    You need to be an individual
    You need to be an Indian citizen
    You are either 60 years old or will attain the age of 60 during the year you are willing to submit the form to your banks
    The computed tax calculated on your total income should be nil
How to save TDS if extra TDS is deducted?

Are you wondering how to save TDS if your bank deducts extra? Here are some quick tips that you can implement:

1)  File your ITR to claim TDS refund

One way to seek an excess TDS deduction refund is through filing the Income Tax Returns. Bank won’t issue a refund as they already have submitted it to the Income Tax Department. The IT department will surely refund it after you file an ITR.

2)  Submit the Form 15G and 15H

Submit the Form 15G and 15H as soon as possible (up to 3 months after the start of the FY) even if you forget to submit it at the start of the financial year. 

It will ensure that no TDS gets deducted for the remainder of the year.

The Bottom Line

The difference between 15G and 15H forms is now revealed to you, and you can use the information to help save the TDS. 

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1 comment:

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