Is 15g invalid if interest income is above 1 lakh?

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

Thanks for quick reply.

I am a resident individual. A housewife with no other Taxable income. My fixed deposit interest income is not even 2 lakhs. However bank never asked me about my taxable income, they just told me that if your fixed deposit income exceeds Rs. 1 lakh, we will deduct TDS even if you have submitted form 15G.

Which bank and Branch ? Bank cant deduct TDS from your Interest Income if your estimated income for the year is NIL. As per Rules : 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.

It seems bank staff are not aware of such kind of rules