How to fill Form 15G: It is that time of the year when most fixed deposit holders make a dash to their banker. The interest earned from FDs is fully taxable and one is supposed to show it under ‘Income from other sources’ while computing one’s gross income for the year. The total tax liability of the individual will be determined accordingly and one may or may not be liable to pay taxes. However, banks are required to deduct tax at source (TDS) on the interest earned on FDs before paying it to the FD holder.

When is TDS deducted

The bank is liable to deduct TDS if the interest earned during the financial year exceeds a certain limit. For the previous year 2018-19, the limit was Rs 10,000 and for seniors citizens it was Rs 50,000. For the current FY 2019-20, the limit stands at Rs 40,000 and Rs 50,000 for seniors. This means on a deposit of nearly Rs 6 lakh by a non-senior citizen, at an assumed interest rate of about 7 percent per annum, the annual interest earned will not be subject to TDS. For calculating TDS, deposits across various branches of the same bank are taken into account.

How not to get bank deduct TDS

If one’s income is below the exempted limit and one is not liable to pay income tax, the depositor can avoid TDS. To avoid TDS, one needs to submit a declaration in either Form 15G or 15H. While Form 15G is for individuals below 60 years, Form 15H is for individuals above 60 years of age. One can submit these forms only when the tax on the total income is nil during the financial year.

When to submit Form 15G or 15H

Ideally, one should submit Form 15G or 15H, as the case may be, in the month of April. For deposits which are more than one year, such forms need to be submitted in each financial year preferably in the month of April.

A fresh Form 15G/15H is required to be submitted for each Financial Year. Form 15G/15H should be submitted at the time of creation of the FD or beginning of Financial Year whichever is earlier. Further, fresh Form 15G/H needs to be submitted for all subsequent deposit booked during the Financial Year. TDS is recovered on the total of interest compounded, interest paid and interest accrued at the end of Financial Year i.e. 31st March on the Fixed Deposits.

How to submit forms in SBI

In case of SBI fixed deposit, if you wish to submit the forms in the SBI bank offline, here are the links to download Form 15G and Form 15H .

Here are the steps to submit the Form 15G or 15H in the SBI bank online

Step 1: Log on to http://www.onlinesbi.com

Step 2: Click on ‘E-Services’ on top panel

Step 3: On the left panel, click on ‘Form 15G/H’

Step 4: Select your branch code where deposits are held

Step 5: On next page, some basic information will be auto-displayed

Step 6: Enter the following information:

  • Whether you are assessed to tax – Yes/No
  • If yes, then you have to choose latest assessment year .
  • Estimated total income for that assessment year
  • Total number of Form 15G and Form 15H filed
  • Aggregate amount of income for which Form 15G and Form 15H is filed

Step 7: Submit to receive a High Security Password

Step 8: Confirm the same and you will get the message of successful generation and submission of the Form. You may download the form from the same page.