Do you have a fixed deposit in the bank? 20 percent tax if this is not work

Do you have a large amount of fixed deposit in the bank? Do you get interest income through it? If you do not get into income tax, your interest income is higher than the prescribed limit, 20 % tax will be cut. However, you can stop taxes by completing this task.

Self -proclamation letter

You can stop TDS on interest income by presenting Form 15G and Form 15H in your FD Bank. These are the declaration forms themselves. TDS is not cut for those who deposit these forms. If you do not file Form 15G and Form 15H. If your interest income is more than the specified limit then you will have to pay 20 percent tax.

If it is more than the limit

Under Section 194A of the Income Tax Act, senior citizens above 60 years of age have no interest income of up to Rs 50,000 in the financial year. TDS has been exempted on interest income of up to Rs 40,000 for 60 years. If interest income is more than this limit, banks will pay up to 20 percent of TD. If you are not in tax, your interest income is more than the specified limit and submit Form 15G or Form 15H to the bank.

They should be presented

Form 15G is a self -declaration form filed by customers, Hindu families and trustees under the age of 60. Senior citizens above 60 years of age should file Form 15H. It should be declared that these forms are under the Income Tax limit. By doing this, there will be no tax on your interest income. These forms should be presented to banks at the beginning of the financial year.