Form 15G and Form 15H to save TDS on Fixed deposit and Recurring deposit
As per section 194A of Income tax, TDS or Tax Deducted at Source will be mandatory deducted on all interest payment from banks and financial institutions exceeding Rs. 10,000 in any financial year. Thus, bank will have to deduct tax when any customer receives more than Rs. 10,000 and will directly pay this tax to the government on the behalf of the customer.
Form 15G and Form 15H are self declaration forms, which is to be submitted by bank customer requesting his/her bank for non deduction of TDS for prescribed income on Fixed deposit and Recurring deposit.
Form 15G is for Indian residents below 60 years of age.
Form 15H is for Indian residents above 60 years of age.
The important conditions for filing 15G and 15H are:
The final tax on estimated total income as per the Income Tax Act should be zero. (Income upto Rs 2,50,000/- for the residents aged below 60 years and Rs 3,00,000 for Senior citizen who are aged between 60-79 years and Rs 5,00,000 for super seniors aged 80 years or more).
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