TDS Form- If your earning is less than 2.50 lakhs and only the interest from the bank is the means of earning, then you can save your TDS by submitting Form 15G.
If you do not want the bank to deduct TDS on your deposit, then fill in Form 15G or 15H and take leave of TDS. But this exemption is not applicable to everyone. Those people whose income is not taxable can be saved from this TDS deduction. Meaning your earnings are less than 2.50 lakhs and only the interest from the bank is the source of your earnings, then you can save your TDS by depositing 15G declaration. Banks deduct 10% TDS on interest above Rs 40,000. If you are under 60 years of age, you can apply for not cutting TDS by filling Form 15G in the bank. If you are over 60 years old, then this exemption on TDS can be obtained through Form 15H.
This is how TDS will remain
Veenita is 45 years old. His annual income is 2 lakh rupees and he is getting an interest of 70,000 rupees from the FD of the bank. Venita’s Kula income is 2.70 lakh rupees. Now if Vinita invests a tax saving of Rs 45,000 under 80C, then the total income will be 2.25 lakh and will be able to claim the exemption of TDS by filling the venerated Form 15G.
Take care of these things if you want to avoid TDS…
- You should fill 15G or 15H at the beginning of the financial year so that the bank deducts tax on the same basis. If tax is deducted once and your taxable income is zero, then you have to claim the refund by filling the income tax return.
- It is mandatory to have PAN number or else you will not get the rebate. If you do not have the reverse PAN, the bank can deduct double TDS.
- Every year you have to fill the form. Once you fill the form, it is valid for one year only.
- If you have FD in more than one bank, then you have to give different declarations 15G and 15H in each bank.
- You do not submit these forms in income tax, but submit it to the bank.
- You can also get declaration forms 15G and 15H from the bank and these forms are also available on the income tax website.
Where can TDS be saved?
Dividend of Mutual Funds
TDS is levied on dividends of more than 5000 rupees. You can submit Form 15G on the mutual fund company’s website or the Registrar of Transfer Agent’s (RTA) website.
EPF withdrawal
If you withdraw EPF before the completion of five years of job, then TDS is applied on it. However, Form 15 G / H will help you avoid TDS deduction on your EPF. But keep in mind that your total income should not be taxable.
Post Office Deposit
In post office deposit scheme also you can submit this form to save TDS.
