Submit 15G/15H and Save TDS on Interest Income Earned

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Save TDS
When your total income is not taxable, you can choose to submit Form 15G or 15H and avoid TDS on the interest income you earn. The rental income or interest earned from bank deposits is eligible for TDS but if your total income is below the taxable limit, you can submit Form 15G or 15H to the relevant institution or person.
What is TDS?
TDS is the process of collecting tax when income is generated. TDS is deducted at prescribed rate by tax department when PAN is furnished by the person or at 20% in absence of PAN, whichever is higher. You can also check out complete details about TDS here.
Form 15G and Form 15H
These forms are self-declaration by the applicant where they give an undertaking that the income is below the threshold limit of income tax and thus, is exempt from any tax deduction. Form 15G is for those who are below the age of 60 years and Form 15H is filled by senior citizens. When you submit these forms to bank or tenant, they will not deduct TDS from the amount payable to you in form of interest income or rent received.

frorm 15g
form 15h
Image Source: incometaxindia.gov.in
Eligibility for Submitting Form 15G
  • You are a resident individual
  • Your age is less than 60 years
  • Tax calculated on your total income is ZERO.
Eligibility for Submitting Form 15H
  • You are resident Indian individual
  • Your age is 60 years and above
  • Tax calculated on your total income is ZERO

Where to Submit these Forms?
You need to submit 15G or 15H forms separately to different sources to income. For example, you are having fixed deposits in three different banks, and thus will need to submit this form separately to each bank each year.
In case where you have already submitted the forms but realize later in the year that the income is more than the tax limit, you can assess your liability on extra income and pay income tax accordingly.


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