CBDT has recently issued a new notification for people investing in FDs and advised to fill Form 15H and Form 15G by 30 June. Failure to do so can cut people’s money.
New Delhi: Central Board of Direct Taxes ( CBDT ) has recently issued a new notification. Under this, people who invest money in fixed deposits ( FD ) will have to submit 15G and 15H forms by June 30. If someone cannot do it on time, then the bank starts cutting money on it.
What is the relation of these forms to FD?
Some people will have a question in their mind that how are these two forms related to FD? So know that the 15G and 15H forms are directly related to the Fixed Deposit (FD). This helps in saving TDS ( Tax Deduction at Source ). In today’s time, people prefer to invest in FD for attractive interest and returns. But you have to pay tax on the returns received on FD. The central bank RBI has set a threshold limit of tax, which TDS is deducted on crossing.
What is the upper limit of TDS?
According to the Reserve Bank of India, the threshold limit of TDS was earlier Rs 10,000, which was increased to 40 thousand in the budget of this financial year. Let us know that this limit is for post office and bank deposits. If you want to avoid TDS, then you have to fill the 15G and 15H form. This is only a part of income tax.
Know these conditions before filling the 15G form
Form 15G is filled to avoid TDS deduction on income. There are 5 conditions on which this form is filled. Let us know who can fill this form-
– Any Indian citizen or joint Hindu family or trust can fill this form.
– People below 60 years can fill this form.
– This form is not valid for the company or firm.
– Tax payable on the total income should be zero.
– Interest earned in one year should be less than the tax exemption limit.
Know these conditions before filling the 15H form
To avoid TDS deduction, people above 60 years have to fill in Form 15H. However, it also has some conditions. Let’s know about them …
– Any Indian citizen can fill this form.
– The person should be at least 60 years old.
– Tax payable on the total income should be zero.
Do not forget to attach the PAN card with the form
In these two forms, some of your basic information is asked, first fill it carefully. After filling the form, now attach a copy of your PAN card with tax declaration. After this, submit this form to your financier. Keep in mind that both these forms are valid for one year only. At the beginning of the year, these forms should be submitted to your financier. Before filling the form, make sure that your financier has not deducted the tax because the bank will not refund you. To withdraw TDS money from the bank, you have to fill the ITR.
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