Due to heavy income tax deduction, people are very upset and think of some way to save it. If you have also got a bank FD, then make sure in advance that banks do not deduct TDS (tax deduction at source) on the interest received on this deposit.
New Delhi: Due to heavy income tax deduction, people are very upset and think of some way to save it. If you have also got a bank FD, then make sure in advance that banks do not deduct TDS (tax deduction at source) on the interest received on this deposit. If you are not under income tax, the bank will not deduct TDS on FD. Also know that if you have an interest of more than 40,000 in a financial year on a bank FD, then TDS will be deducted.
Know the benefits of 15H / 15G
For non-deduction of TDS, Form 15G / 15H has to be submitted with the bank. If you have submitted these forms for FD in the last financial year, then it will have to be submitted when the new financial year starts. Investors are required to pay tax only on the interest received on bank FDs and the bank imposes TDS on it which is adjusted during the filing of Income Tax Return (ITR).
Conditions for Form 15G?
- Individuals below 60 years of age or HUF (Hindu Undivided Family) or Trust or other accessories can fill this form. But it is not for companies or firms.
- Only Indian residents can fill.
- Must have a Permanent Account Number (PAN).
- Tax should be zero on total income.
- The total interest income from a fixed deposit should be within the fixed exemption limit.
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