Pankaj,
I had recently received a message from State Bank as follows: "Pls. Submit 15H/15G from, as applicable, to avoid "Tax Deduction at Source". Contact Us for details". Can you pls. let me know what are these forms and why it is required?
Thanks Jyothi Prasad S ([email protected])
Both the forms used to avoid tds deduction on interest receive from bank deposits and form should be deposit to the banks before the first interest credit/due. The TDS deduction will levy if interest during the year exceed the amount of Rs. 10000/-
Form 15H for every individual above the age of 60 years Form 15G for every individual below the age of 60 years
But As far as I understand these forms shoudl only be used if you dont hav any taxable income as you have to sign a declaration at the bottom of the form that says this. Most of the people 60 yrs and above have FD's and banks deduct flat 10% once you give your PAN number even though their total income and tax payabel might be negligible. This lead to every tiem extra tax deduction and waiting for refunds. Do you think 15H is way to avoid the mess of extra tax deduction at source or it could have legal implications from IT deptt. if you give it for high amount FD's?
One must only provide 15G/15H only if his income is below taxable limits.
Income tax department may raise notice for false declaration.
