TDS – an ever-ending bridge of irritation is nothing but tax deducted at source i.e. pre-payment of tax to the government.

Suppose, your income does not exceed taxable limit and then also you have received income after deducting TDS, then what should we do in order to file return & claim refund & to get rid of TDS??

The procedure is simple & hassle-free!!

One has to submit Form 15G or 15H as applicable & required.

Form 15G and form 15H are used for avoiding the TDS deduction while computing the interest earned during the financial year. Both forms are well understood by the provisions of Sec 197A, which discusses the issue of deducting taxes even when the total income of an assessee falls below the taxable limit.

Now Let us understand more about these forms in order to remove the strain from the roots of this issue.

FORM 15H

Form 15H can be submitted by a person who is above 60 yrs i.e. Senior citizens are eligible to file Declaration in Form 15H. HUFs & NRIs cannot use the form 15H.

They can submit form 15H if there total Income from interest on securities other than interest on securities exceeds maximum amount not chargeable to tax if tax payable by them is NIL i.e. PY income is less than the taxable limit.

Other Relevant Points relating to Form 15H:

• The form should be submitted to each branches of a bank, where one has deposited his money. For example you have deposit in three SBI bank branches Rs.200000 each, you must submit the Form 15H to each branch in order to avoid TDS.

• The form should be submitted before the first payment of interest & at the start of the year itself. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of year.

• It’s very true that, the Bank after undergoing their banking process will deduct TDS on the interest earned on Fixed Deposits, if it is above Rs. 10000 Per Annum.

So if a person is sure that he will not be required to pay any tax, then he can submit form 15H  to avoid deduction of TDS from his interest income. Also, one need to submit the form if interest on loan, advance, debentures, and bonds exceeds Rs. 5000.

If you have an FD with bank of Rs. 30, 00,000 and bank pays interest @ 10% i.e. Rs. 30,000, then interest amount shall exceed the basic limit and bank shall cut TDS on such amount.

Now, if you submit Form 15G or 15H as applicable then bank will not deduct any TDS on interest and you will receive the full Interest amount.