Save TDS on FD: If you are also worried about the TDS deducted on the interest of FD, then do not worry, because the government has relaxed the rules to give relief to the taxpayers, so that you can save tax. Apart from this, you can also save the TDS deducted on interest by filling some special forms.
How to save TDS on FD: Many people still consider Fixed Deposit i.e. FD as a better option for investment. If you also invest money in FD, but are worried about the TDS i.e. Tax Deducted at Source levied on its interest in the return, then do not worry. Because you can save the TDS levied on interest by adopting some special methods. So what is this method, know the full details.
The government has relaxed the new rules of TDS
The government has made the rules of TDS a little easier than before, which has given relief to those who make FD. Under the new rule, if you are below 60 years of age, then TDS will be deducted only if the annual interest is more than ₹ 50,000. Tax will not be deducted on interest less than this. For senior citizens, i.e. those above 60 years of age, this limit is ₹ 1,00,000. In such a situation, if the interest is less than this, then no tax will be levied on it.
Easy tips to avoid TDS
If you want to enjoy your FD returns without the tension of tax and if your total income is only from FD interest, but it is less than ₹ 4 lakh, then you can avoid TDS by submitting a form in the bank. These forms are different for senior citizens and people below 60 years of age.
If you are a senior citizen (above 60 years), then you will have to submit Form 15H in the bank, this will prevent TDS from being deducted on FD interest.
People who are below 60 years of age can save tax through Form 15G.
This form has to be submitted to the bank at the beginning of every financial year, i.e. before 1 April. By doing this, you will get the full interest of FD.
What is Form 15H and 15G?
Form 15H is for those who are 60 years of age or above and their income is less than the taxable limit. It is presented in the form of self-declaration. This does not attract any TDS on their deposit income. On the other hand, Form 15G is used to avoid TDS on your interest income from fixed deposits, savings account or recurring deposits. It is valid for persons below 60 years of age with income less than the taxable limit.
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