Save TDS on Interest Income with Forms 15G and 15H
Summary – Are
you wondering how to save TDS? Read on and know the role of Forms 15G and 15H
and how they can help you!
What do you to
ensure that your bank does deduct Tax Deducted at Source (TDS) on the interest
if your total income is not taxable?
You need to know that banks need to deduct
TDS when your interest income is more than Rs.10,000 in a year. The bank also
includes deposits kept in all branches to compute the limit.
However, if
your income is below the taxable limit, you can easily submit Form 15G and 15H
to your bank to initiate the request not to deduct TDS on the interest.
Here’s a difference between 15g and 15h form. This post will cover some information on what is Form 15G and Form 15H
and multiple aspects around it. Let’s know more:
What is Form 15G and Form 15H?
You can submit
the Form 15G and Form 15H to make sure that there is no Tax Deducted at Source
(TDS) that’s deducted on your income if you meet some terms.
While applying
for these forms, you need to have a PAN Card. Some banks also let you fill and
submit these forms online via the website of a bank.
You also need
to know that the Form 15H is for senior citizens and on the other hand,
everyone is eligible to use the Form 15G.
Once you submit
these two forms, you will be able to receive the benefits of Form 15G/15H to
help you save TDS for a financial year. Thus, now that you know how to save TDS
on your interest income, you can submit these forms every year.
Once the
financial year starts, the submission of these forms early will ensure that
there is no TDS deduction from your banks.
What conditions you should fulfil to submit the Form 15G?
✓ You are either an individual / HUF /Trust or another assessee but not a firm or company
✓ You should be a resident of India
✓ Your age should less than 60 years
✓ The tax calculated on your total income is zero
✓
The
total interest income for the year is lesser than the basic exemption limit for
the year (Rs.25,000 for a 2017-18 financial year) and 2018-2019 assessment year
What conditions to fulfil while submitting the Form 15H?
✓ You need to be an individual
✓ You need to be an Indian citizen
✓ You are either 60 years old or will attain the age of 60
during the year you are willing to submit the form to your banks
✓
The
computed tax calculated on your total income should be nil
How to save TDS if extra TDS is deducted?
Are you
wondering how to save TDS if your bank deducts extra? Here are some quick tips that you can
implement:
1) File
your ITR to claim TDS refund
One way to seek
an excess TDS deduction refund is through filing the Income Tax Returns. Bank
won’t issue a refund as they already have submitted it to the Income Tax
Department. The IT department will surely refund it after you file an ITR.
2) Submit
the Form 15G and 15H
Submit the Form
15G and 15H as soon as possible (up to 3 months after the start of the FY) even
if you forget to submit it at the start of the financial year.
It will ensure
that no TDS gets deducted for the remainder of the year.
The Bottom Line
The difference
between 15G and 15H forms is now revealed to you, and you can use the
information to help save the TDS.
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The Indian Government provides an associate exemption from duty if the turnover is RS. a hundred and fifty lakhs within the year. It means that the excise duty would be due if the turnover is quite a hundred and fifty lakhs, equally if the SSI entity had started up the business in an exceedingly current year, then it's entitled to the good thing about the exemption for the present year as its previous year clearances ar zip, even with the very fact that the business has not started the operations.
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