How Forms 15G and 15H save TDS on Interest Income

How Forms 15G and 15H save TDS on Interest Income
Form 15G & 15H are self-declaration forms required to be submitted by the assessee so that he/she can rid from the TDS deduction on interest on fixed deposit. Basically, banks ask the depositors to submit these forms each year and they have certain specific rules. Talking about the types, form 15H is for senior citizens while the other one i.e. form 15G is for the rest of the people. Let’s understand them precisely.

Form 15G: (Under age of 60 yrs)

Any person who is a resident of India can submit the form 15G form. The benefit of this scheme is not for NRI’s. Any particular body, except a company, can submit this form, i.e. any individual, HUF, Trust, Association of Persons or Body of Individuals. The only condition is that the person is under 60 years of age.

Form 15H: (Senior Citizens)

Form 15H is for those who are beyond 60 years of age or during the financial year completes 60 years provided that his tax liability on his estimated income basis is negligible for the financial year.

How to submit forms

Rule 29C is applicable for submission of Form 15G & 15H.
  • 1.paper form
  • 2.electronically after verified.

Keep in mind

Your form will not be accepted by the bank without PAN submission, failing which the bank will deduct tax @20%. It is advisable to submit a copy of your PAN card

Please obtain acknowledgement while submitting it. So it is advisable to get the form submitted personally and obtain acknowledgement rather than sending it through post. Acknowledgement of submission of PAN details will come handy in case of any dispute with the bank.

Conclusion:
Fresh forms are required to be filed each year. As incomes of investors may differ from year to year, the eligibility for furnishing the forms has to be ascertained every year.If you do not furnished form 15H or 15G and bank deducted TDS on interest no problem you can claim TDS refund.