FD Alert: FD is considered to be a much better option for securing the future. In this, you deposit a fixed amount and you get more interest benefit than a common account. The Central Board of Direct Taxes has recently issued a new notification for people getting FDs. It states that people who invest money in FDs will have to submit 15G and 15H forms by June 30. If someone is not able to do this on time, then banks will start deducting money from his account.
The 15G and 15H forms help save TDS. People prefer to invest in FDs for higher interest and returns. But you also have to pay tax on the return on FD. RBI has set a tax limit, which you have to pay TDS on crossing.
What is the limit of TDS?
According to the Reserve Bank of India, the threshold limit of TDS is 40 thousand rupees. Earlier this limit was Rs 10 thousand, which has been increased to 40 thousand in the budget of this financial year. This limit is for deposits at post offices and banks. To avoid deducting TDS on income, fill in Form 15G. There are 5 conditions on which this form is filled.
What are the terms of 15G form
- An Indian citizen or joint Hindu family or trust can fill this form.
- People below 60 years can fill this form.
- This form is filled only when the tax liability on total income is zero.
- Earnings from interest in a year should be less than the tax exemption limit.
What are the terms of 15H form
- Any Indian citizen whose age is 60 years or more. He can fill this form.
- The tax liability on the total earnings of the person filling the form should be zero.
- Remember these things while filling the form
Fill all the information carefully while filling the form. After filling the form, attach a copy of your PAN card with tax declaration. Now submit this form to your financier. Both these forms are valid for one year only. At the beginning of every year, these forms have to be submitted to your financier. Before filling the form, make sure that your financier has not deducted the tax as the bank will not refund you. To withdraw TDS money from the bank, you have to fill the ITR.
