If you hold a term or fixed deposit (FD) with State Bank of India (SBI) or plan to invest in one you need to submit Form 15G or Form 15H at least once every financial year. This was said by SBI, India's largest bank, on microblogging site Twitter. This is applicable to individuals who don't come under the income tax bracket for a financial year. By submitting Forms 15G and Form 15H against a fixed deposit, individuals save tax deducted at source (TDS) on interest income, according to SBI. Form 15G/H - which means either of the forms 15G or 15H, whichever applicable - needs to be submitted every financial year. Form 15G or Form 15H also needs to be submitted while making a new term or fixed deposit or before closure/premature closure of a term deposit, according to SBI.
- Forms 15G/H needs to be submitted while making new term deposit, says SBI
- Form 15G, Form 15H meant for avoiding deduction of TDS on interest income
- 15G for individuals less than 60 years in age, 15H for senior citizens
What are forms 15G and 15H? Who needs to fill Form 15G/H?
Form 15G and Form 15H are meant for avoiding deduction of TDS on interest income. While Form 15G is meant for individuals less than 60 years in age, Form 15H is for senior citizens - those at least 60 years old and above. These forms can be used only if the tax calculated on the individual's total income is nil for the financial year. Both forms - Form 15G and Form 15H - have a validity of one financial year. That is why either of them is required to be submitted at least once every financial year.
|Form 15G||Form 15H|
|Who can file?||Resident Indian individual or HUF||Resident Indian individual|
|Age||less than 60 years||60 years old or to be 60 years old during the year for which the form is being submitted|
|declaration not valid unless the person furnishes valid PAN|
|Tax calculated on total income should be nil|
|Total interest income for the year should be less than minimum exemption limit of that year|
How to use Form 15G or Form 15H to save TDS on interest income
Forms 15G and 15H can be submitted to save TDS on interest income. Banks have to deduct TDS on FDs when interest income is more than Rs 10,000 in a financial year. The bank takes into account deposits held in all its branches to calculate this limit. But if the total income is below the taxable limit, Form 15G and Form 15H can be submitted to the bank requesting them not to deduct any TDS on the interest.
A lot of taxpayers forget to submit Form 15G and Form 15H in time. In such a situation TDS may already be deducted by the bank, SBI explained.
How to submit Form 15G, Form 15H
Form 15G or Form 15H can be submitted in either of the two modes available: by visiting a bank branch and online.
SBI enables its customers to submit forms 15G and 15H through its internet banking portal, onlinesbi.com. SBI has given some steps for its existing Internet banking customers to submit Forms 15G/H online:
1) After logging in, the user is required to click on 'e-services' to proceed.
2) Select option 'Submit 15G/H'.
3) Select Form 15G or Form 15H.
4) Select the CIF No. and click on Submit
5) At this stage, some information is already filled. The user may proceed by filling up the remaining information.
6) You then confirm the details. A one-time password (OTP) will be sent to your registered mobile number.