New Delhi: If you haven’t already, it’s crucial to visit your bank and promptly fill out a significant form.
Failure to do so may result in deductions from your bank account.
Particularly for those holding fixed deposits (FDs), submitting Form 15G or Form 15H to your bank branch is imperative.
This ensures that tax is not deducted on your FD interest.
Understanding Form 15G/H
Form 15G is intended for individuals below 60 years of age and Hindu Undivided Families (HUFs) who have invested in fixed deposits.
By submitting Form 15G, you can prevent Tax Deducted at Source (TDS) on your interest income.
Similarly, individuals above 60 years of age, i.e., senior citizens, can utilize Form 15H to avoid TDS on FD interest.
Both forms operate under Section 197A of the Income Tax Act, 1961, allowing you to request the bank to cease TDS deductions from your interest income.
Importance of Submission
While it’s not mandatory to submit Form 15G/H, it’s highly recommended if your interest income exceeds Rs 40,000 in a financial year.
Consistently submitting Form 15G ensures that you can enjoy your interest income without any TDS deductions, providing significant tax-saving benefits.
Act Now to Preserve Your Savings
To safeguard your savings and prevent unnecessary deductions, it’s essential to take immediate action.
Visit your bank at the earliest opportunity and complete the necessary formalities by submitting Form 15G or Form 15H.
This proactive step will ensure that you retain your hard-earned interest income intact, without any tax deductions.
