In order to give relief to the taxpayers, the government has extended the deadline for submitting Income Tax Return for the year 2020-21. The Central Board of Direct Taxes (CBDT) has extended the deadline 2 months for personal ITR and one month for companies or partnership firms.
Those who invest in FD will have to submit 15G and 15H on or before June 30. According to the new notification of CBDT, there has been no change in its deadline. This form has to be filled and submitted to the bank, otherwise, the bank deducts the money.
Both forms have a direct relation to Fixed Deposit (FD)
15G and 15H forms are directly related to Fixed Deposit (FD) and it helps in saving TDS (Tax Deduction at Source).
Actually, due to attractive interest and returns, people consider FD as the right investment option. Now one has to pay tax on the returns received on FD. The central bank RBI i.e. the Reserve Bank has set a threshold limit of tax, which TDS is deducted on the crossing.
What is the upper limit of TDS?
The threshold limit of TDS was earlier Rs 10,000, which has been increased to Rs 40,000. This limit is for deposits in post offices and banks. If you want to avoid TDS, then you have to fill the 15G and 15H form.
What is a 15G form?
Form 15G is filled to avoid TDS deduction on income. There are some conditions of this, on the basis of which this form is filled. Let’s know who can fill this form-
- An Indian citizen or joint Hindu family or trust can fill this form.
- People below 60 years can fill this form.
- This form is not valid for the company or firm.
- Tax liability on total income should be zero.
- Earnings from interest in a year should be less than the tax exemption limit.
What is a 15H form?
Those who are more than 60 years of age can fill the 15H form to avoid TDS deduction.
- Any Indian citizen can fill this form.
- The person should be at least 60 years old.
- Tax liability on total earnings should be zero.
How to fill 15H and 15G forms?
- In both forms, fill the basic information carefully.
- Now attach a copy of PAN card with tax declaration.
- Submit this form to your financier.
Both forms are valid for one year. At the beginning of the year, these forms should be submitted to your financier. Before filling the form, make sure that your financier has not deducted the tax because the bank will not refund you. To withdraw TDS money from the bank, you have to fill the ITR.