How to Avoid TDS on FD Interest by Form 15G & 15H

First of all you need to understand that tax has to be deducted at source by banks on your FD interest. The bank will deduct TDS on interest payment or credited on your fixed deposits.

Now, the question is that is there any possibility to avoid TDS on your fixed deposits?

  • The answer is yes, In one condition you can avoid to deduct TDS on your fixed deposit by the bank.
  • The one and only condition is that your income should below than taxable limit.

Now, the question is what is the taxable limit, how to know that my income is under tax limit or not?

  • The answer is very simple, if your income is below than 2,50,000 (A.Y.2017-18) then your income is under taxable limit. Now, you have right under income tax act to stop deducting TDS by your bank.

But now, the question is what is the procedure to avoid TDS if my income is under tax limit?

  • In order to save tax one need to submit Form 15G & 15H to the bank.
  • If the interest earned on Fixed Deposits is more than 10,000 but the total income of an individual does not fall in income Tax slab form 15G & 15H need to be submitted in order to have zero Tax deduction or Lower Tax deduction on the interest earned.

What is Form 15G and Form 15H? Where to get Form 15G & 15H?

Tax shall not be deducted at source on any payment of interest payable to a person (other than a company or a firm), who furnishes a declaration in writing (in duplicate) in form 15G/15H (as the case may be) that the tax on his estimated total income of the previous year will be nil.

 Note: It is applicable only if you does not fall in income Tax slab.

See Income tax Slab

Download Form 15G

Download Form 15H

15G Form Conditions to Avoid TDS on FD

The following conditions must fulfill by you while submitting form 15G in Banks.

  • You should be individual or HUF and Resident Indian. Know your resident status
  • Your age should not exceed 60 years.
  • Your income must be lower than taxable limit. In other words your income tax should be NIL.

15G Form Conditions to Avoid TDS on FD

  • You status for the previous year should be individual and Resident Indian. Know your resident status
  • Your age should not less than 60 years.
  • Your income must be lower than taxable limit. In other words your income tax should be NIL.

Some common question regarding Form 15G & 15H

Q. What is the eligibility for submitting form 15G & 15H?
A. Eligibility criteria is total income for the financial year does not fall in income Tax slab.

Q. Who need to submit form 15G and 15H?
A. Form 15H need to be submitted by a senior citizen (Age above 60 years) and Form 15G need to be submitted by individuals other than senior citizen.

Q. What is the validity of form 15G & 15H?
A. Validity of the forms is single financial year.

Q. What is the proof I have submitted the 15G & 15H form I have submitted at the bank?
A. Banker would issue acknowledgement statement to the submitter, also bank issue form 16A stating the deduction of TDS.

Q. What if Individual miss to submit form 15G & 15H to the bank and TDS was deducted, but my income is non-taxable; how can one get my money back?

A.One need not to worry you are eligible for tax refund from government. Individual need to submit the 16A form received from bank while filing tax.

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2 Comments

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  1. MITHU PRAMANICK MANDAL

    I submitted filled up 15G Form for FY 2014,2015,2016 unfortunately bank did not docket it that I knew when I saw Rs1046,Rs3609 Rs08 have been deducted from my maturity value of FD as TDS more over bank did not submit deducted amount Rs3609 of FY 2015-16 as result FORM 26AS showing no transaction present[updated on 04-07-2017] .My income was always lower than taxable income.Several time I contact BM to get FORM 16A BUT till date I did not get it. please help me how I can get back deducted amount.

  2. Please show me the provision whereby , it is provided that form 15 H has to be submitted once in a year per pan number?Per Bank.
    Shah D J

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