15 g

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Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2014 What is current exemption of interest rates Sirs?

AVTAR SINGH

AVTAR SINGH (Expert)
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29 January 2014 Exemption of interest rates??? Pl. clearly ask what is the query.

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Querist : Anonymous

Querist : Anonymous (Querist)

29 January 2014 bank gave me 15G form. so i want to knw hwo they are doing that Sir.

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Ganeshbabu K

Ganeshbabu K (Expert)
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29 January 2014 if ur taxable income is less than taxable limit and if you provide form 15G to banks bank will not deduct tds on interest on bank deposits
.
.
to learn more on this refer

http://www.charteredclub.com/tds-on-fixed-deposits/

DIVAKAR PATIL

DIVAKAR PATIL (Expert)
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29 January 2014 Thanks for the question, very relevant during financial year end. 15G & 15H declaration is required to be submitted to Bank if the interest income during financial year exceeds Rs.10000/- per account holder, in order to avoid Tax Deduction at Source by bank. If the 15G/15H form is submitted by the account holder, bank will not deduct Tax at source, however the tax liability of the account holder still remains. The depositor cannot submit 15G/15H if total taxable income including interest from bank deposits; exceeds Rs.2 lakh.

AVTAR SINGH

AVTAR SINGH (Expert)
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29 January 2014 Form 15G/15H can be used for interest & certain other receipts receivable from bank, post office, companies or other persons. An individual or HUF before filing these Forms must satisfy two conditions. First, the estimated taxable income for the financial year should be less than the basic exemption limit. This is Rs 2 lakh for individuals below 60 years and HUFs, Rs 2.5 lakh for senior citizens, and Rs 5 lakh for very senior citizens above 80 years.

The second condition, which is applicable only to Form 15G, is that the total interest income from all sources should not exceed the basic exemption limit. Senior citizens have been exempted from this condition because most retirees get the biggest chunk of their income from interest.