Have you put your money in bank fixed deposits and don't want your bank to deduct TDS on interest income? You need to do this.
Have you put your money in the fixed deposits (FDs) of any bank, including SBI, and want to avoid TDS (tax deducted at source) on interest income? You must submit either Form 15G or Form 15H to your bank, depending upon your eligibility and meeting the applicable conditions.
The State Bank of India, India’s largest bank, has informed its customers through its social media posts that “Indian residents are required to submit Form 15G/H to avoid TDS on term deposits. You need to submit the form every financial year or while making new term deposits or before closure or premature closure of term deposits. Submit the same online or at your branch.”
It is clear, thus, that if you do not want your bank – whether SBI or any other bank – to deduct tax on the interest earned on your fixed deposits as per the provisions of the Income Tax Act, then you have no option but to submit Form 15G or Form 15H to the bank requesting them not to deduct TDS. However, these forms are not required to be submitted in all the cases.
It may be noted that banks are required to deduct TDS on interest income if it exceeds Rs 10,000 in a fiscal year. Deposits in all the branches are taken into consideration for calculating this limit. However, if the interest income is less than Rs 10,000 or is expected to be less, then you have to submit either Form 15G or Form 15H, depending on your age and income, to the bank.
For instance, if you are a resident Indian less than 60 years, then you have to submit Form 15G, and if you are 60-year old, then you are required to submit Form 15H. In both these cases, however, the tax calculated on your total income must be nil and you should be able to furnish your valid PAN.