Big news for those who get FD! If this paper is not deposited, the bank will deduct tax

new Delhi. If you have made a fixed deposit in the bank or in the post office, then you should immediately deposit 15G and 15H forms (TDS) or else TDS will be deducted on your profits (interest income). However, CBDT has extended the deadline for filling Form 15G and Form 15H to June 30, 2020, in view of the lockdown caused by Coronavirus. To avoid taxation, both these forms are filled by taxpayers who are not covered by the tax.

Why submission of this form is necessary – When interest income on FD in a financial year exceeds a certain limit, then it is mandatory for banks to deduct TDS (tax deducted at source). That is why the depositor has to give a self-declaration form telling Form 15G or Form 15H (for senior citizens) that their income is less than the taxable limit. Form 15G and Form 15H (for senior citizens) are submitted by the account holders to ensure that TDS is not deducted on their income.

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You can avoid TDS on income like interest or rent by depositing Form 15G or 15H. These forms have to be given to banks, corporate bond issuing companies, post office or tenant etc.

If tax is deducted, how to get refunded – Refund of additional TDS deducted due to delay in depositing Form 15G or 15H can be taken only by filing income tax refund.

You can submit the form till 30 June- CBDT said, “Due to the pandemic of Kovid-19 virus, the functioning of all sectors including banks have been badly affected. In such a situation, many people may have trouble filling Form 15G and Form 15H on time. ‘

If this happens, their TDS can be deducted even if there is no tax liability. CBDT said, ‘This step has been taken to overcome this problem and if a person submits Form 15G and Form 15H to banks and other financial institutions for the financial year 2019-20, then this form by June 30, 2020 Will be valid.

SBI account holders can log into their accounts online and submit the form under e-services.

>> Customers choose ‘e-services’, ’15G / H’ option.
>> Now, choose Form 15G or Form 15H
>> Then click on Customer Information File (CIF) No and submit.
>> After clicking on Submit’button, it will take you to a page which will contain some pre-filled information. Then fill in the other information.

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