Don’t want Bankers to deduct TDS on Interest Income? Consider Submitting form 15G/15H and see if you are eligible to submit

What is form 15G/15H?
This form is specifically designed for bank account holders to request their banks to not deduct TDS on their interest income as their interest income falls below the required threshold. Form 15G/15H is valid for one financial year, so it’s ideal that you submit them at the start of the financial year to ensure that the bank does not deduct any TDS. However before submitting, read on to check if you are eligible to submit these forms

How to Submit?

• The new revised Form 15G/15H can be submitted either physically or via an online submission through the specific bank’s online portal.
• Although online submissions are available, not all banks are equipped for online processing, in which case it would be wise to not wait for the said service and submit the form physically.
• You are also expected to submit your pan information along with your application.
• Although the bank calculates the overall interest income throughout all branches, you are expected to submit this form at each branch from which you expect to receive the interest income.
• Are you eligible to submit form 15G/15H?
  If you’re one of those whose interest income per year is more than Rs. 10,000, and your income is less than the maximum amount not chargeable to income tax, you need to submit this form.
• Banks will deduct TDS when your interest income jumps beyond this threshold.
• However, if you fall under the category where your total income is below the taxable limit you can fill in Form 15G/15H requesting your bank to refrain from deducting any TDS. The taxable limit for an individual is Rs. 2,50,000 per year.
• In certain circumstances where your PF withdrawal is subject to TDS, you may also required to submit this form for PF withdrawal if you wish to save TDS.
• If you have Fixed Deposits, recurring deposits, and corporate bonds, you should verify if your interest income exceeds the threshold, post which you can opt to submit form 15G/15H to avoid TDS deduction.
• When can you not submit?
  Firstly, only a resident of India can submit this form,
• If you’re an NRI, you are ineligible to submit this form.
• A company cannot submit this form; however, a HUF can submit this form. If in a special case your annual income is less than 2.5 lacs, which means your taxable income is nil,
• however, your interest income exceeds 2 lacs you cannot submit this form, and TDS will be deducted.