1. When can the bank deduct tax at source?
The bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs. 10,000 in a financial year. This limit of Rs. 10,000 is applicable for each branch of a bank and not for all the branches of a bank taken together.
2. Who can submit form No. 15G?
First and foremost only a person who is resident in India can submit form No. 15G. So an NRI cannot submit this form. Any person other than a Company can submit form No. 15 G. So any Individual and HUF can submit form No. 15G.
However it is not that every Individual or HUF can submit form No. 15G. Only the individual or HUF, whose tax on the estimated income for the year is nil and the amount of interest income from all the sources does not exceed the minimum exemption limit, can submit this form.
So for being eligible for you to submit this form, you need to satisfy both the above conditions.
In a situation where due to various deductions the tax payable on total income may be nil but if the total amount of interest income is expected to exceed Rs. 2 lacs you cannot submit this form.
3. Who can submit form No. 15H?
Any resident Individual who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his tax liability on the basis of his estimated income is nil for the financial year though the total amount of interest from all sources may exceed Rs. 2.50 lacs, the minimum amount liable for tax.
So only senior citizens can submit this form.
4. What precautions to be taken while submitting form no. 15G and 15H?
Please ensure to submit your PAN details to the bank while submitting the form No. 15G or 15 H. In case you fail to provide your PAN number to the bank, the bank will deduct TDS @ 20 percent against the applicable rate of 10 percent even if you have submitted form no. 15G and 15H.