FORM 15G AND 15H
As you are well aware of fixed deposits .Which is favorite
choice for the investors who want safe and secure interest rate and timely
money back on their deposits. Because of presence of public bank people have
more faith in the banking system then share market.
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Friends as you all well aware about , if you deposits a certain
sum for example Rs 10,00,000 or whatever amount there is, you are charge with Tax
or basically TDS on your bank fixed deposit interest. For avoiding this problem
bank ask you to submit form no 15 G of 15 H each year. So
WHAT IS THIS FORM 15 G AND
15 H ?
WHY WE HAVE TO SUBMIT
FORM 15G AND 15H ?
WHERE TO GET FORM NO 15G
AND 15H ?
WHAT IS VALIDITY PERIOD FOR FORM 15G AND FORM 15H?
WHY ITS IMPORTANT TO SUBMIT PAN WHILE DOING FIXED DEPOSIT ?
So today we are going to discuss about this .so first if all
what is form 15G and 15H
Basically form 15 G and 15 H is a self declaration, provide by
resident of India . This form is declaration or tells that, person is individual not a company or
firm. According to given form a person tell to the deductor that his total income is not Taxable
in the previous year or there is no Tax on his income in financial year. These forms
should be submitted by assesses himself in that financial year before its get
over and before getting first interest receipt.
WHY WE HAVE TO SUBMIT
FORM 15G AND 15 H
Because its duty of banks
to cut TDS on the customer fixed deposit interest if customer do not
submit form 15 G and form 15 H .This TDS will cut on your fixed deposit
interest if your interest amount go beyond Rs 10000 @ rate of 10%.
Rate of interest will also go beyond 20% if you do not submit
your PAN card copy with your Fixed deposits documents. Whatever amount will
deducted by bank is deposited to government account , Bank after submitting
that TDS amount issue you TDS certificate .
So for saving your Tax you have to submit form 15 G or form 15H
Form No. 15H: This form is for
individual who are above the age limit of 60 (senior citizens) and therefore he
can save TDS if his financial year income is not Taxable.
Form No. 15G : This form is submitted by the people who are below the age of
60 year and resident of India.
This
means that he should be an Indian if any NRI is there he cannot submit this
form and he has to pay Tax at the rate of 30% on his fixed deposit interest .
(THERE IS THERE TYPE IN NON-RESIDENTS LIKE NRE,NRO,FCR )
Companies and firm are not eligible for submitting form 15G
other than CO. and firm any individual for example HUF(Hindu undivided family)
,any Trust, AOP or BOI can submit form 15G.
By doing this they can save TDS on their income and save their precious
time.
WHERE TO GET FORM 15 G OR 15 H
Form 15G and 15H are
provided by banks to their customers ,but its also responsibility of customer
that he ask for form No 15G or 15H if he want to Tackle TDS procedure. So next
time if you go for fixed deposit demand for form 15 g and form 15 H.
VALIDITY PERIOD OF FORM 15 G AND FORM 15 H
Form 15 G and form 15 H is valid only up to one financial year as
year change you have to resubmit you form 15 G or form 15 H again without
delay. So when ever policy is going to renew you have to submit there forms.
IMPORTANCE OF PAN CARD WHILE DOING FIXED DEPOSIT
PAN is important because if your are forget to submit form 15 G
or form 15 H and also do not submit PAN then Tax rate is 20% on your fixed
deposit interest . So its important that you should have PAN card while doing
fixed deposit into banks . And if you submit then rate of Tax on your fixed
deposit interest is 10%.
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