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.
Form 15G: The form has 19 fields in total.
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.
Aditi Ahuja is a noted Financial Consultant and Adviser. she is a tech blogger and writer too. She loves to keep updated herself on this and one may get the best suggestion in both of the industries from her. She loves to travel in her free time. Here are some good to read a blog like best phones under 20000, laptop buying guide and more, that you can find interesting if read.
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