When you make an investment like Fixed Deposit (FD), the financial institution deducts TDS (Tax Deducted at Source) if your total interest income in a financial year is above Rs. 10,000. The evaluation encompasses all your deposits and savings. However, you can avoid paying TDS if your total interest income is less than the taxable limit by submitting Form 15G and 15H under Section 194A of the Income Tax Act 1961.
Both 15G and 15H have the same purpose. The only difference is that HUFs, trusts and individuals below 60 should consider 15G while senior citizens should furnish 15H. Submit at the start of the fiscal year to enjoy the benefits of 15G and 15H.
However, make sure to fill it up correctly. You will, otherwise, be penalised for any wrong, incorrect or false declaration in the forms under Section 277 of Income Tax Act.
How should you fill Form 15G and 15H?
Form 15G: The form has 19 fields in total.
- In ‘Name of the Assessee (Declarant)’, enter your name according to your PAN card.
- The next field requires your PAN number as provided on your PAN card.
- In the ‘Status’ field, state whether you are a HUF or an individual.
- ‘Previous Year’ here refers to financial year which is April 1 till March 31. You must enter the present fiscal year for which you’re filling this Form 15G.
- The ‘Residential Status’ suggests whether you’re an NRI or a resident Indian. Note that NRIs are not eligible for 15G or 15H.
- Mention your door no., flat no. and block no.
- ‘Name of Premises’ requires your apartment name, society, etc.
- Furnish the name of the road/street/lane you reside in.
- The next field asks for the details of your locality or area.
- Fill up fields 10 to 12 as required; district name, state and PIN of your residential area.
- Provide with your email address for communication.
- In field 14, provide your telephone number and mobile number correctly.
- Next, there are 2 questions in field 15 you have to answer. For question (a), answer ‘yes’ if your total income in any of the last 6 years was more than the taxable limit. For question (b), you need to mention the latest year when your total income crossed the taxable limit, if you have answered ‘yes’ in question (a).
- In field 16, mention the income amount you are earning from the particular investment this declaration is for. Suppose you are earning 8% interest on a simple FD of Rs. 1 Lakh for 1 year. So, the estimated income will be Rs. 8,000 for the financial year.
- Field 17 requires you to mention your expected total income in the fiscal year for which you are submitting this declaration. Consider all your income sources including interest income, salary, etc. along with the amount in field 16.
- In field 18, you need to provide how many Form 15G you have filled previously and the total income according to which you made those declarations.
- The last field requires details of this investment for which you are filling this form. It will require your FD account number, insurance policy number, etc.
For the ‘Declaration/Verification’ part, mention the date, place and give your signature. Part II of the form needs your (you being the individual responsible for the tax payment) personal details as required.
Form 15H: The form has 18 fields in total.
This form has fields similar to Form 15G except ‘Status’ and ‘Residential Status’. It also includes the ‘Date of Birth’ section in field 3.
Therefore, fill up and submit form 15G and 15H to save TDS on your interest income.
Individuals popularly opt for such tax saving schemes and deductions under section 80C to create future savings. However, these investment and tax exemption schemes may not be ideal at sudden situations which require immediate funds.
Different Types of Performance Stages
How To Properly Maintain Your Vehicle While Exploring The Countryside
Understand the Importance of House Restumping Service
How To Select The Right Trailer?
Here’s How EMIs for Personal Loans are Calculated
Leasing vs Buying a Car for Rideshare Drivers: Don’t Get Taken for a Ride
Studying in North Miami, Florida USA
Why to Choose a PCO Car for Hire
Where can I start over?
Moving with your significant other? These tips will help you survive the process
5 Not Obvious Ways to Promote Your Blog
Top Ten Most Popular Torrent Sites Of 2018
Top 10 Free Mp3 Download Sites In 2019
Recent Advancements In Technology of Pizza Packaging Industry
Remarketing Made Simple: A Step-by-Step Guide
Everything you need to know about self-storage
How to Find Duplicate Photos on Your PC or Mac
Knowing From The Corporate Lawyers In India How To Close A Business
4 Reasons Why Hiring the Best SEO Company is a Good Idea
Don’t Allow Hard Drive Failure to Compromise Your Files
Finance11 months ago
Get Ready Before it is too late! Hire a Tax Specialist to Get Your Taxes Prepared
General11 months ago
What Makes XLPE Insulation so Special for Users?
Home Improvement2 years ago
How To Decorate Home With Vintage Home Accessories
Home Improvement1 year ago
Best Roof Design for Snow
Software11 months ago
How to Choose a Web Development Platform for Small Business
General12 months ago
Why Wear Lederhosen in the Customary Fashion with Suspenders?
Travel12 months ago
The Most Beautiful Beach Bars in Frankfurt
Apps12 months ago
Role Of Python in Mobile Application Development