Form 15G/15H- You may also have to pay tax on the interest earned on bank fixed deposits (FDs). However, there are certain limits for this. The TDS limit on interest on bank FDs has been raised to Rs 50,000. This new change has come into effect from April 1, 2025. This limit is for non-senior citizens.
In other cases, the limit has been increased from Rs 5,000 to Rs 10,000. Please note that TDS is a tax deducted at source. When the interest earned on bank FDs exceeds a certain limit, the bank starts deducting TDS. This limit is different for senior citizens and non-senior citizens. In such cases, Forms 15G and 15H can be used to save TDS . These must be submitted to the bank. Form 15H is designed for senior citizens, i.e., those aged 60 and above. If you expect to earn more than Rs 1 lakh in interest from your FD, you can use this form to avoid TDS (tax deduction) by the bank.
Know what Form 15G is?
By filling Form 15G and Form 15H, a person informs the bank that his income is not taxable. Form 15G can be filled by any person below 60 years of age belonging to a Hindu Undivided Family. Form 15G is a declaration form under sub-section 1 and 1(A) of Section 197A of the Income Tax Act, 1961. Through this, the bank gets to know about your annual income. If your income is not taxable, then the bank does not deduct TDS on FD. If you are not taxable, then you can fill this form.
Who can fill Form 15G?
1. This form cannot be filled out by a company. This form is only for individuals.
2 – Must be an Indian citizen.
3 – Your age should be less than 60 years.
4 – Tax on your income should be nil.
What is Form 15H?
Form 15H is for those aged 60 years or older. By submitting this form, senior citizens can prevent TDS deductions on FD interest. However, this form is only required for those with zero taxable income. This form must be submitted at all bank branches where the deposit is being made. If interest income from sources other than deposits, such as loans, advances, debentures, bonds, etc., exceeds Rs 5,000, Form 15H must be submitted.
