How can Form 15G & Form 15H save TDS on interest income?

financialexpress.com:

Question: As the new financial year has commenced, kindly guide us on the requirement for submission of Forms 15G & 15H by the taxpayers to banks. Who are the eligible taxpayers to submit the said forms? Further, what are the applicable deadlines for submitting these forms?

Answer given by Dr. Suresh Surana, Founder, RSM India: Form 15G and Form 15H are self declaration forms that individual taxpayers submit to tax deductors (such as banks, financial institutions, etc.) in order to request for non-deduction of TDS if their estimated tax liability during the relevant financial year is Nil.

Banks are required to deduct TDS where the interest income exceeds Rs. 40,000 in a particular financial year (Rs 50,000 in case of senior citizens) as per Section 194A of the Income Tax Act, 1961. However, if the estimated tax liability for the relevant financial year is Nil, the taxpayer can submit Form 15G or 15H (as applicable) to the bank requesting them not to deduct any TDS from their interest income.

Also Read: Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?

These forms can typically be submitted online through the respective portals of banks or financial institutions, or they can be submitted physically at the concerned bank branch.

Further, it is pertinent to note that the forms are valid for one financial year only and must be submitted separately for each financial year.

Form 15G

In accordance with the Section 197A(1A) of the IT Act read with Rule 29C of the IT Rules, 1962, Form 15G can be submitted by the resident Individuals with age less than 60 years or HUF or even a Trust or any other assessee whose estimated tax liability during the relevant financial year is Nil. However, any company