The Banks in India have been directed to deduct TDS of all those individuals who are earning interest on their income more than Rs 10,000. It includes all deposits held in branches. In case an individual's total income is below the taxable limit, he/she can submit a Form 15G and Form 15H to the bank to request them not to deduct TDS on the interest amount.
It is a declaration under sub-section (1C) of Section 197A, Income Tax Act. This form is applicable for all those individuals who are more than 60 years old. Through this form, they can claim tax deductions at the time of filing ITR.
It is a tax declaration under sub-sections (1) and (1A) of section 197A of the Income Tax Act of 1961, to be made by an individual (not being a company or firm) claiming certain receipts without the deduction of tax.
The validity of Form 15H and 15G are one year. Make sure to submit the form at the start of financial year. In case, you missed it, theTDS will get deducted by the bank. In such cases, you can file the forms immediately or file the ITR to get the TDS refunded.
You become liable for TDS deduction on EPF withdrawal done before 5 years of continuous service. If an individual has an EPF balance of more the Rs.50,000 and likely to withdraw it before completion of 5 years of continuous service, he/she may submit a Form 15G/15H.
TDS deduction from corporate bonds, if the income generated from them exceeds Rs.5,000.
Digitized post offices also conduct TDS and will accept Form 15G/15H if the individual meet the eligibility criteria.
There is a deduction of TDS on rent if the total rental payment for a year exceeds Rs.1.8 lakhs. If the individual's total income is nil, he/she can submit Form 15G/15H to request the tenant to not deduct TDS.