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Form 15 g - can we use it to our advantage?

TDS / TCS 597 views 1 replies

Avinash

Manager

24 Points Posted on 26 December 2011

Dear friends,

I am in the 30% tax slab.

And I also have an BANK FD of 15 lacs

Now, I have a question. Do I need to really submit form 15G?

If I don't submit, I know that by default TDS will be cut and at a rate of 10%.

However, if I submit the form 15G, the interest on FD (more than 1 lac) need to get added to my salary income and will be taxed at 30%.

So, I pay less tax (by TDS) if I dont submit the 15G form.

I don't know if my thinking is correct. please advise and correct me if I am wrong.

Thank you,

Avinash

Replies (1)

Akhil Sharma

Service

141 Points Posted on 26 December 2011

Dear Avinash, please note that Form 15G is submitted for a lower rate of TDS. In your case this is not applicable. Hence, bank will do the TDS @ 10% as usual. Since you come under higher tax bracket, you can report this income to your employer so that the difference tax can be deducted and paid by them or alternatively you can pay advance tax on your own for the differential tax.