Confusion regarding form 15 - g / h

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 April 2018
SIR/MADAM,
Please, guide in following :

A person is holding some FDs in three different banks.
In F.Y. 2018-19, these FDs will mature and he will get interest income of Rs. 9,000 from one bank, Rs. 30,000 from second bank, and Rs. 35,000 from third bank.

His total taxable income for F.Y. 2018-19, including the FDs’ interest, is estimated to be below the exemption limits. His Tax-liability will be NIL.

Here, his interest income is more than Rs. 10,000 in 2 banks, as described above.
He knows about this interest amount at the starting of F.Y. 2018-19.

Thus, TDS should be deducted from his interest amount. As per the rule, he should not fill form 15-G/H.

But, many persons submit form 15-G / H, even if they are having interest income more than the prescribed limit of Rs. 10,000.

Q-1 Should this person submit form 15G/H, just because all other people do this ?
And even if, his interest income is much more than the prescribed limit for not deducting TDS ?

Q-2 If, he submits form 15-G/H, even if his interest is more than 10,000, then,
is there any hidden trouble that he may have to face in future, because of this ?
Is there any penalty for this ?

Q-3 If, in this case, the person is a senior citizen,then,
Can senior citizens submit Form 15-H , even if his interest is more than 10,000 , and that too, in each of the 3 banks ?

Are senior citizens treated in a different manner, for TDS deduction and form 15-H submission ?