Paying tax is necessary for all taxpayers. If taxpayers do not pay tax on time then strict action is taken by Income Tax. Tax slabs have been created by the Income Tax Department for tax payment. Many taxpayers are planning to save maximum tax. Today we will tell you how you can save TDS from interest or rental income.
New Delhi. Tax rules are made by the Income Tax Department. Apart from this, tax slab has also been created for tax payment. Taxpayers falling in the tax slab have to pay tax on time.
If the taxpayer does not pay the tax before time then he also gets a notice from the Income Tax Department (Income Tax Notice). TDS is deducted for taxpayers who earn income from rent or interest on bank deposits.
Please note that TDS is deducted on the basis of income tax slab. Rules related to TDS rates have been made in the Income Tax Act 1961.
If the income of the taxpayer does not fall in the tax slab i.e. is not taxable but still his TDS is being deducted then he needs to make corrections as soon as possible. For this the taxpayer will have to fill Form 15G/H.
Which taxpayers should fill Form 15G/H?
Form 15G/H is for two different age groups. Form 15H is used by senior citizens i.e. those whose age is more than 60 years. At the same time, 15G can be used by people below 60 years of age. Form 15G/H is filled by those taxpayers who are not eligible to pay tax and their TDS is deducted.
Form 15G/H is a kind of self-declaration form. This form has been made only for TDS deduction. Through this form, taxpayers can avail deduction of Rs 2.5 lakh under TDS. Whereas senior citizen taxpayers can avail tax exemption of up to Rs 3 lakh.
If the taxpayer included in the new tax system fills this form and his income is less than Rs 7 lakh, then he is not required to pay tax.
About Form 15G/H
This form is divided into two parts. The taxpayer should fill all the information correctly in this form. One special thing that the taxpayer should pay attention to is that he should fill the name and date of birth correctly in this form.
The taxpayer will also have to provide information about income source in the form. If the taxpayer has 4 bank accounts then he will have to give information about those also.
