SBI Fixed Deposit: Earning over Rs 10,000 interest and have nil tax liability? Do this to save TDS

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Published: July 18, 2020 4:48 PM

All those SBI customers, who do not have a taxable income, can fill out form 15G to request the bank not to deduct tax at source on interest paid/payable on fixed deposits.

Money management, Money management in lockdown, covid-19 crisis, money lessons, mutual fund, SIP, Online payments, spending habitsAs per SBI, tax on FDs, or RDs, is deducted if the total interest paid in a year exceeds Rs 10,000 for individuals and Rs 50,000 for senior citizens.

SBI Form 15G/H Rules For tax on Fixed Deposit, Recurring Deposit Interest: All those SBI customers, who do not have a taxable income, can fill out form 15G to request the bank not to deduct tax at source on interest paid/payable on fixed deposits. Senior citizens can do the same with Form 15 H. Currently, there is no tax on income up to Rs 5 lakh. In case a person’s tax liability is zero in a year, he/she can request the bank not to deduct TCS on FDs by filing Form- 15G/H.

As per SBI, tax on FDs, or RDs, is deducted if the total interest paid in a year exceeds Rs 10,000 for individuals and Rs 50,000 for senior citizens.

Below mentioned are the details on how to apply and what guidelines have to be kept while filling out the form for State Bank of India.

Filing Form 15G/H at State Bank of India

There are three options where customers can submit their 15G/H forms. It can either be via Home Branch, Non-Home Branch and via SBI Internet Banking Portal. For internet banking, customers will have to log in to internet banking and go to the “e-Services” tab. From there, they can submit the 15G/H form. It is to note that the form will be available online between 8 am and 8 pm.

State Bank of India says that if a customer is between 80 and 100 years of age, “then the value entered in ‘Estimated total income of the P.Y. in which income mentioned in column 16 to be included’ field should be less than or equal to Rs. 5,00,000.” Moreover, the form will not be considered if the applicant fails in proving his valid Permanent Account Number (PAN).

Apart from the above, make sure that the residential address is mentioned according to the provisions of section 6 of the Income Tax Act, 1961. The bank also says that the applicants should mention the amount of total estimated income for the year form is being filled out. The capacity in which the declaration is being furnished on behalf of AOP, HUF should be indicated. Additionally, distinctive number of shares, term deposit account number, recurring deposit, life insurance policy numbers as well as employee code, all have to be mentioned.

Before signing the document, it is advised to verify and ensure that all correct information has been filled out as any false declaration will be liable for punishment.

SBI accepts Form 15G/H at the time of change of financial year and when the customer makes a new time deposit which includes auto-renewal.

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