Form 15G and Form 15H is Self declarations by the depositor not to deduct tax on the fixed deposits(mainly dividend /interest from securities, Interest on fixed deposits, Interest on units of National Saving Schemes)
Any one whose income is below the taxable limit has to fill form 15G / 15H and submit in the bank. You cannot submit the Form 15G/H if your income
- Only persons with income below taxable limits can only make use of this form.
- As per the provisions, only persons with NIL tax liability only can give these forms.
- These forms should be submitted to each and every branch where you hold the deposits. For example, if you hold deposits in 3 different branches of State Bank of India, this declaration shall be given for each branch separately.
- These forms can be used only for payments in the nature of Interest / dividend from securities, Interest on fixed deposits, Interest on units of National Saving Schemes of For other types of payments, these forms cannot be used.
This form shall be submitted every Financial year at the beginning of the Financial year.
Who can Submit Form 15G/15H
Form 15G shall be given by persons below 60 years of age.
Form 15H shall be given by persons above 60 years of age. (Senior Citizens)
“Person” means Individual (or) a person (not being a company or a firm). Hence even HUFs and Association of Persons can also make use of these forms.
How to receive tax deductions if you invest in Fixed Deposits?
There is no income tax benefit available for a recurring deposit, also note that sec 80C benefit is not available even if the recurring deposit is for a period of 5 years or more.