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.