Form 15G And 15H Eligibility Criteria For TDS Exemptions
The government imposes a 10%
TDS on interest income above Rs. 10,000 per month from taxable
investments. Every citizen of India has to pay this tax mandatorily.
However, there is a way in which you can get an exemption from TDS on
interest income. Simply fill up the form
15G or 15H. These forms are a straightforward way which can save
you up to Rs. 2.5 Lakh every year.
If you do not fill out these
forms, you’ll have to take the long route of filing for Income Tax
Returns (ITR). It is a lengthy, time consuming and often frustrating
process, which may require multiple trips to the income tax
department. In contrast, most financial companies have an online
system to fill out Form 15G and 15H. It just
takes a few minutes to submit your details. You have to meet a few
basic eligibility criteria.
Once you meet these criteria
and submit the forms, you’ll be eligible for exemption from tax
deduction at source on interest income. Individuals below the age of
60, HUFs (Hindu
Undivided Familys) and
trusts have to submit the 15G form. Those over 60 need to fill the
15H form. However, these income tax exemptions are only for resident citizens of India and do not apply for NRIs.
They also do not apply for companies and corporate firms.
The benefits of Form 15G and
Form 15H for FD are too immense to miss
out. You must stay updated on the eligibility criteria and the
maximum amount of exemption, which may change year to year.
February 6th, 2019