Income tax form 15G and Form 15H can save TDS on fixed deposits

How to save TDS on interest you are getting on fixed deposits?

Lets take a example, Mrs Verma is house wife and she has a Fixed Deposit of Rs 2,00,000 /-.

She is earning interest @ 10%. During last year she has earned interest of Rs 20,000/-.

Bank is under obligation to deduct TDS @ 10.3%  (20.6% in case she has not submitted PAN number to bank) ie  TDS of Rs 2,060/- will be deducted by bank.

How can she save TDS on Fixed Deposit ?

She need to sign and submit, Form 15 G to the bank. Form 15G is declaration to Income tax department, that my total income is less than total taxable limit. (Rs 2,00,000/- for Financial year 2012-13).

What is difference between form 15G and 15H ?

 Form 15H is for senior citizens and

Form 15G is for others. This include Individuals and HUF (Hindu undivided family)

Who is called a Senior Citizen in Income tax Act?

Any individual who is more than 6o years old is called Senior Citizen. Suppose Mr. Verma is 60 years old then he will be require to give form 15H to bank for no deduction of TDS (Tax Deposited at source.)

I have deposited form 15G and 15H in last financial year. Should i submit form again in this financial year?

Yes, These forms have to be furnished separately for each financial year.

For eg – If you have a 3 year FD, you’ll have to furnish Form 15G/Form 15H separately for each year.

I have deposited form 15G / form 15H in December. Bank has already deducted TDS. What should I do?

It is advised that you do the same in the beginning of the year to avoid any wrong dedcution of TDS.

Since bank has already deposited  TDS with the,  Income tax department, you can claim the same as refund. You need to file your return and claim Income tax refund.

We can help you file income tax return and get Income tax refund. Visit here for more details on how to file income tax return.

I am a NRI, can I submit form 15G  / form 15H?

No , these forms are not applicable for NRI’s.

I will be getting saving interest of Rs 15000/-, Will bank be deducting TDS ?

No, TDS is not deducted for Saving interest.

My relative has total salary of more than 5 lacs Rs. But still he is has given form 15G to bank. Is it correct to do so? Can is also do the same?

Please give form 15G only if your total income will be less then total taxable limit  (Rs 2,00,000/- for Financial year 2012-13)

Wrong declaration will land you in trouble. Income tax officer can levy penalty for tax evasion.

I am a NRI living in USA for last 5 years. I am earning interest for bank FD of about Rs 1 lac. What can I do to avoid TDS ?

Non Resident Indian (NRI’s ) if your Total income is below taxable limit, then you can apply for certificate to Income tax officer permitting deduction of tax at lower rate.

The income tax department generally issues Exemption Certificate for a period of 1 to 3 years.

Any NRI who has obtained Exemption Certificate need to submit it to the Payer of the income who will follow the certificate and not deduct tax or may deduct at a lower rate as given.

I am getting interest of Rs 6000/- per annumn. Should i also submit form 15G?

No, form 15G is not required to be submitted.

Bank will be deducting TDS if Interest is more than Rs 10,000/-

Similarly TDS will be deducted if interest is more than Rs 5000/-, If you are earning Interest from any company deposit or Financial institution (other than bank).  

Where can I download form 15 G / 15 H?

You can download Form 15G here

Form 15 H here

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3 Responses to Income tax form 15G and Form 15H can save TDS on fixed deposits

  1. Polsani says:

    Hi,

    i have a FD with 99,6** for one year i received interest of 9.25 and sumed up with the amount and became 1,09,675
    Now this amount continues in FD and it will become 1,20,655

    Do i need to submit form 15H, if so how to submit please let me know more on this and let me know any other details you need

    • taxgyan says:

      Since your only income is interest income and your total income from interest does not exceed Rs 180,000 /- . You should submit form 15H, so that bank does not deduct any tax.

  2. good service to public

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