Interest on fixed deposits

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2013 Respected Sirs,

My father was working in a public sector bank and he died while he was in the service. His Retirement benefits received are now given to the family and we intend to deposit the same amount as FD in the bank.

My mother is a house wife and she does not have any other income other than the family pension receiving monthly. Family Pension amounts to Rs. 10500/- per month.

My question is regarding the interest that we receive from FD. The total interest for the FD that she will receive will be approximately Rs. 36000/- per year.

Is she an eligible person to give Form 15G to the bank so that bank won't deduct tax from her interest income?

If she is eligible and also if a further amount of Rs. 5,00,000/- is deposited in her name, will the answer change?

Please reply as soon as possible. Its Urgent.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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10 June 2013 i) Eligible to file form 15G.

ii) Further deposit of Rs. 5 lacks will not loose the eligibility.

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2013 Thank you Chackrapani Warrier sir for answering the query.

Sir, I have one more doubt. If the said 5 lakh amount is deposited in the name of my father's mother [who have PAN and no other income], she will also have to give Form 15H right?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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01 August 2024 Yes, if the interest income from the Fixed Deposit (FD) is expected to be below the taxable limit, your father's mother can submit Form 15H to avoid TDS on the interest income.

### **Details on Form 15H:**

**Form 15H** is a declaration provided by senior citizens (individuals aged 60 years or more) to the bank or financial institution to ensure that no TDS (Tax Deducted at Source) is deducted from their interest income, provided their total income is below the taxable limit.

### **Conditions for Form 15H:**

1. **Age Requirement**: The individual must be a senior citizen, i.e., aged 60 years or more.

2. **Income Criteria**: The total income of the individual, including interest income, should be below the taxable limit for the financial year. For example, in FY 2023-24, the basic exemption limit is ₹3 lakh for senior citizens.

3. **Submission**: Form 15H should be submitted to the bank or financial institution where the FD is held. It must be submitted before the end of the financial year to avoid TDS.

### **In Your Case:**

- **Depositor**: If the FD is in the name of your father's mother and she is a senior citizen, she should submit Form 15H to the bank where the FD is held.

- **Income**: The total interest income from the FD and any other sources should be considered. If the total income remains below the exempted limit, Form 15H can be used.

- **No Other Income**: Since she has no other income, if her total interest income from the FD is below the exemption limit, Form 15H will ensure no TDS is deducted.

### **Submission Process:**

1. **Obtain Form 15H**: Download or obtain Form 15H from the bank or financial institution.

2. **Fill Out the Form**: Provide personal details, PAN, and income details.

3. **Submit to Bank**: Submit the completed Form 15H to the bank where the FD is held.

4. **Bank Records**: The bank will process the form and avoid deducting TDS if all conditions are met.

### **Summary:**

If your father's mother is a senior citizen with total income below the taxable limit, she should submit Form 15H to avoid TDS on FD interest.

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