Fintotal News Analysis | Form 15G/15H Acknowledgement from Bank - Don't Miss This
Form 15G/15H Acknowledgement from Bank - Don't Miss This
Ruby Jacob, 01 Jun 2013

Have you submitted Form 15G (or Form 15H as applies to you) only to find to your dismay that the bank still applied TDS on your fixed deposit interest? RBI has taken note of this and has instructed all banks to provide customers who submit Form 15G or Form 15H an acknowledgement for accountability.

Sometimes Form 15G/15H that is submitted is misplaced at the bank or they simply don't keep track of such submission. So they end up deducting income tax on interest on deposits of such customers as well. The only way they can then claim it back is through filing tax returns.

Needless to say, this is has caused a lot of inconvenience, especially for senior citizens if they were not mandatorily required to file income tax returns. Based on complaints by several customers to the RBI, it has advised banks to give an acknowledgement at the time of accepting Form15G/15H from customers and improve on customer service.

Form 15G/15H is the declaration that depositors should submit to their bank for not deducting TDS on their interest. But remember that even if you submit this form, unless you are eligible, TDS will be applied on your interest income.

If you have deposits in banks that would earn interest over Rs 10,000 a year and your income is below taxable limit for this year, submit Form 15G (15H for those over 60 yrs). It should be submitted at the start of every financial year as long as you expect to earn interest on the deposit. But if haven't submitted it yet, you can do so now. You can download it from Income Tax site or pick it up from your bank itself. Don't forget to collect the acknowledgement from your bank, so you have proof (to screw them, of course, if they screw up your TDS!)

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