With fixed interest rate and attractive returns, Fixed Deposit is one of the most preferred investment options for most investors. However, the interest you earn from Fixed Deposit is taxable. As per the recent Budget, TDS threshold has been raised to Rs. 40,000 from Rs. 10,000 for banks and post office deposits, while for NBFCs it continues to be Rs. 5000.
Form 15G can be used to prevent TDS deduction on income, if the following conditions are met:
For those who are above 60 years of age, Form 15H can be furnished to prevent deduction of TDS if the following conditions are met:
Here’s a quick summary of the exemption limit for different individuals:
| Customer Type | Details | Form Type | Basic exemption limit |
|---|---|---|---|
| Individual | Indian Resident below 60 years of age | Form 15G | Rs. 2,50,000 |
| Senior Citizen | Indian Resident who is above 60 years of age, but less than 80 years of age | Form 15H | RRs. 5,00,000 |
| Super Senior Citizen | Indian Resident who is above 80 years of age | Form 15H | Rs. 5,00,000 |
| Non-Individuals | Trust, Association, Club, HUF and Society | Form 15G | Rs. 2,50,000 |
Once you’ve met the required conditions for furnishing Forms 15G and 15H, you can start filling them. Here’s are the steps you need to take:
For those looking to avoid long queues and arduous processes, you can consider filing these forms online.
Both Forms 15G and 15H are valid for 1 year, and should be submitted to your financier at the start of the year. You must ensure that your financier does not deduct the tax, before you furnish the forms, because the bank may not be able to refund it. To get your money back, you may need to file your ITR and claim a refund of your TDS amount.
To download Form 15G or Form 15H, here’s what you need to do:
