Tax Saving Tips: Are you also worried about TDS being deducted from your salary every month? TDS i.e. Tax Deduction at Source is a tax deducted from your salary. Similarly, TDS is also deducted on FD interest.
Tax Saving Tips : Are you also worried about TDS being deducted from your salary every month? TDS i.e. Tax Deduction at Source is a tax deducted from your salary. Similarly, TDS is also deducted on FD interest. TDS is deducted on the salary received by the company from the employees and the interest received on your FD from the bank. You can also avoid this TDS deduction and save your tax.
When is TDS applicable?
If the interest received on fixed deposits in the bank exceeds Rs 40,000 in a financial year, then TDS is deducted. In case of senior citizens, this limit is Rs 50,000. In case of corporate bonds, TDS is applicable on interest of Rs 5000 or more. Many times TDS is deducted even on income which does not exceed the limit. In such a case, to get it back, taxpayers can fill Form 15G or 15H, for which a refund is given.
What is Form 15G?
Individuals below 60 years of age and HUFs who have invested in fixed deposits. He can fill Form 15G. By filling this form, tax on interest i.e. TDS will not be deducted. Form 15G is available under Section 197A of the Income Tax Act 1961. Through this the bank comes to know about your annual income. Through this form you can ask the bank to stop deducting TDS from your interest income.
What is Form 15H?
People above 60 years of age i.e. senior citizens fill Form 15H to avoid deducting TDS on Fixed Deposit interest. After submitting this form, you get your deposited money i.e. interest without any tax deduction. If you submit Form 15G every year, you will not have to pay TDS.
