Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Form 15G is a declaration submitted by residents below 60 to prevent TDS on interest income when total taxable income is below the basic exemption limit.
Form 15G tells the bank not to cut TDS on FD interest if your total income is below taxable limit — avoids refund hassle later.
Form 15H for seniors 60+. Conditions: estimated tax nil, interest below exemption threshold individually and in aggregate across institutions. False declaration attracts penalty. Valid one financial year; submit at each FD opening or April renewal.
Student with no other income, ₹40,000 FD interest submits 15G to bank — no 10% TDS deducted versus ₹4,000 TDS without form requiring ITR refund claim.
15G for below 60 years; 15H for 60+ with higher interest threshold eligibility for seniors.
If tax liability zero after rebate, 15G may be valid — confirm estimated total income and tax computation before declaring.
Section 277 prosecution possible for false declaration. Banks may reject if PAN shows prior high income pattern.