Why 15G Form is Required for Fixed Deposit?

Fixed Deposits (FDs)
1

I want to know about 15g form requirement for FD

2

The Form 15G is not just any random paperwork! I recommend using it to save yourself from unnecessary TDS deductions on your fixed deposit interest. If the interest you earn from all your FDs in a year is less than ₹50,000, you can declare it in Form 15G.

Let me give you an example.

Say you have an FD that earns you ₹40,000 in a year. If you forget to submit a 15G, the bank will impose a 10% TDS on your earnings even if your overall income is below the tax limit.

Another important thing I must mention here is the PAN card submission. If you have not added your PAN, the bank will deduct a 20% TDS.

Now that is money being cut off unnecessarily, which we can easily avoid.

Here are some suggestions I would like to add as well:

  • You need to submit a Form 15G for FDs only if your age is less than 60.
  • You can submit this Form and avoid deduction if you are an individual taxpayer, an HUF or a trust.
  • In case you forget to submit the Form 15G, claim your refund while filing your IT return. Mention your FD income under the head ‘Income from Other Sources’