If you invest or are planning to invest in fixed deposits, you need to know what is Form 15G. Fixed deposits are an excellent way to grow your savings if you are an early investor or are looking for a stable and safe investment option. What makes them more attractive is that you can save tax on the interest earned from these investments. Thus, merely obtaining more along with the assurance of guaranteed returns.
TDS exemption on fixed deposits was always allowed. But the limit was recently pushed by CBDT (Central Board of Direct Taxes); from Rs. 10,000 to Rs. 40,000; and to Rs. 50,000 for senior citizens. If the total interest earned exceeds these limits, your financier needs to deduct TDS as per Section 194A of Income Tax Act, 1961. But if your interest earnings are more than the prescribed deadline you can still save tax by filling form 15G or 15H; provided your income is lower than the minimum taxable threshold of Rs. 2.5 lakhs per annum.
Fill form 15G you are aged less than 60 years. Hindu Undivided Family and Trust can submit form 15G. Senior citizens or people aged 60 and above need to file form 15H.
There are two ways to fill these forms. For both of them, you will need to have a PAN card.
1) Online
● Log in to your bank’s website or visit the Income Tax Department’s website
● Look for the form relevant to you (15G or 15H) and fill in the details. The form will ask for basic details like name, PAN card number, address, etc. and also the income of your previous and current years
● Carefully check the entered details
● Attach your details and submit
2) Download PDF
● Look for “Frequently Used Forms” on the Income Tax Department’s website
● Click on the PDF icon once you find the relevant form (15G or 15H) and download it
● Fill in the details and print three copies. Sign and submit the form along with the documents to your financier
It is essential to provide the forms at the start of the fiscal year to ensure that your financier does not deduct tax at the source, i.e., before paying out the interest to you. Once the tax is deducted, your bank or financial institution will not be able to refund it. You will need to claim the refund for TDS in your Income Tax Return form, meaning more hassles and paperwork.
Choosing your FD service provider wisely
To get the most out of your savings, you need to choose your fixed deposit service provider wisely. Bajaj Finance FD is one of the best options to invest in fixed deposits. With up to 8.95% interest return, Bajaj Finance FD has some of the highest interest rates in India. It also provides a minimum 51% Return on Investment (ROI), whereas most banks are not able to touch even a 40% return. This is clearly shown in the table below.
Investor Type
Interest rate
Principal Amount
Tenor
Return
ROI
New customer
8.6%
Rs 25,000
5 years
Rs. 12,765
51%
Senior citizens
8.95%
Rs 25,000
5 years
Rs. 13,377
54%
Existing customers
8.85%
Rs 25,000
5 years
Rs. 13,202
53%
ICRA and CRISIL certifications make Bajaj Finance FD one of the safest and most trusted ways to grow your savings. Moreover, you can look at additional features with Bajaj Finance FD such as multi-deposit facility and auto-renewal. Using these features, you can plan your investments in such a way so that you can avoid reaching yearly TDS exemption limit in a particular financial year.
