Tax advisers renewed calls for fixed deposit holders to submit Forms 15G and 15H when eligible, preventing banks from deducting tax at source on interest income below statutory thresholds. Many savers overlook the paperwork and discover deductions only when filing annual returns.
Form 15G targets younger investors and others below age thresholds with taxable income under limits, while 15H serves senior citizens meeting similar criteria. Incorrect declarations can trigger penalties, so accountants recommend verifying projected totals with employers and pension administrators.
Banks must validate PAN details against income tax databases before accepting declarations at branch or online portals. Financial planners integrate TDS planning with overall asset location strategies spanning debt mutual funds and postal schemes.
Regulators have simplified e-filing interfaces, yet outreach remains necessary because rural depositors often lack access to chartered accountants during harvest seasons when lump-sum deposits occur.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.livemint.com/money/earning-fd-interest-why-you-should-submit-form-121-tds-provisions-explained-11781256566384.html