Although there are many saving schemes available in the market, but in terms of safe investment, people prefer to invest in FD. Investing in fixed deposits is also very easy. But before investing, you need to know about some important things.
what is Form 15G and Form 15H: Banks have continuously increased FD interest rates, due to which the trend of investors in fixed deposit has also increased. Tax is also deducted on the earnings from FD. Therefore, if you invest money in Bank FD instead of the existing savings scheme in the market, then you must also know about the rules related to it.
Fixed deposits are considered the safest investment option in our country. At this time, banks have also increased the interest on FDs. Due to which most of the people are preferring to invest in fixed deposits. In such a situation, if you are also going to invest in FD, then there are some things that you should know about.
Let us tell you that when the period of FD done is over, then interest is received on it. But if the interest exceeds the prescribed limit, TDS is deducted from it. To avoid this, it is necessary to fill Form 15H and Form 15G while getting FD done. Due to this, your TDS will not be deducted on maturity. These forms have to be filled every year.
What is Form 15H
This form is for senior citizens. That is, people above the age limit of 60 years should fill and submit Form 15G while getting FD done. If a customer misses filling these forms, then you can claim TDS in the assessment year in Income Tax Return ie ITR. Income Tax Department will refund you.
What is Form 15G
Those who are not senior citizens, they have to submit Form 15G. This form is used to save tax. By filling this form, you can save TDS from being deducted on your income. The thing to note here is that this form is filled only on the basis of certain conditions.
What is provision
If the annual interest income from Fixed Deposit is more than Rs 40000 (Rs 50000 for senior citizens) but the total annual income (including interest income) is not up to the limit where it comes under the tax net, then banks cannot deduct TDS. These forms are valid only for one financial year.
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