Therefore, you must submit the forms at the start of every financial year to ensure that TDS is not deducted from your interest earnings. PAN is compulsory to apply for exemptions.įorm 15G and 15H are both valid only for the current financial year. You can submit the forms online as well via the bank’s official website. If you are a senior citizen, you should file Form 15H however, you need to meet certain eligibility conditions. Form 15G and 15HĪn Indian citizen who wants exemption from TDS deduction on the interest earned from their deposits should submit Form 15G before the validity period ends. Let us check out other information you need to know about Form 15G and 15H. Senior citizens should submit Form 15H.įor the financial year 2019-20, the validity of the submission period for Form 15G and 15H is extended up to 30 June 2020.
However, if the total yearly income, including the interest earned from deposits, is lower than the annual taxable limit, then you can request your bank to seek exemption or immunity from TDS by submitting Form 15G. Accordingly, deducts the TDS if the interest exceeds the minimum taxable income limit. Your bank will add up all the deposits in your name in all their branches before calculating your annual interest income. As per the law, banks should deduct TDS on the interest earned, if the interest earnings are over Rs. Have you kept deposits in your nearest bank? And are you gaining interest out of it? If yes, then you may be liable for TDS deduction on the interest earned from your bank deposits, including your fixed deposits as well as recurring deposits.
Difference between Form 15G and Form 15H.Eligibility conditions to fill Form 15G & Form 15H.Archit Gupta, Founder & CEO, says, "The wordings on Form15G/Form15H mention that an individual is required to declare the total income where tax payable is nil. The total income mentioned in the form is the net taxable income on which the taxpayer's estimated total tax payable is nil. This form should only be submitted by an individual if tax-liability is zero." (Gross total income is the income which is received by you from all sources. Net taxable income refers to the income arrived at after subtracting all the tax-breaks, as applicable to you, from your gross total income.) Abhishek Soni, CEO, tax2win.in says, "For FY2019-20, as there is no tax payable if your taxable income does not exceed Rs 5 lakh, such individuals can submit the Form 15G/Form15H, as applicable. This total income on the form is the net taxable income after claiming all the deductions available to him." Remember, as per the wordings of the form, an individual is required to provide the estimate of total income where tax payable is zero. It was announced in the Interim Budget 2019 that individuals with taxable income up to Rs 5 lakh in a financial year will be able to avail full tax rebate and thus, will not be required to pay any tax.
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