Feb. 11, 2021, 1:30 p.m.
Banks Deducts TDS on your Interest Income when it is more than Rs.40,000 in a financial year(prior to FY 2019-20 this limit was Rs.10000).So as to prevent deduction of TDS if your total income is below the taxable limit you can submit form 15G/15H.
Main Objective of Form 15G and 15H is to prevent TDS deduction on your interest income.
Key Points related to Form 15G/15H :
(1)PAN is Compulsory
(2)Form 15H is for Senior Citizens who are 60 years and above.
(3)Form 15G is for Other Individuals or HUF but not for a company or a firm.
Banks Deducts TDS on your Interest Income when it is more than Rs.40,000 in a financial year(prior to FY 2019-20 this limit was Rs.10000).So as to prevent deduction of TDS if your total income is below the taxable limit you can submit form 15G/15H.
Main Objective of Form 15G and 15H is to prevent TDS deduction on your interest income.
Key Points related to Form 15G/15H :
(1)PAN is Compulsory
(2)Form 15H is for Senior Citizens who are 60 years and above.
(3)Form 15G is for Other Individuals or HUF but not for a company or a firm.
Conditions to Submit Form 15G :
(1) Only Resident Indians can apply.
(2) You are Individual or HUF or Trust or any Other but not Company or a Firm
(3) Age less than 60 years.
(4) Tax Calculated on your total income is nil.
(5)Total Interest Income is less than the basic Exemption limit. Example : Rs.2,50,000 for Financial Year 2020-2021
Conditions to Submit Form 15H:
(1)Resident Indian and Individual
(2)Senior Citizen : Age is 60 years or more
(3)Tax Calculated on Your Total Income is Nil
Note : No TDS to be deducted on savings banks interest.Irrespective of amount of interest.