You can use Form 15G to ask your bank to not deduct TDS on the interest earned during the year if your income is not taxable.
Under Section 194A of the Income Tax Act, banks are liable to deduct TDS from your account when your interest income is more than ₹40,000 (for senior citizens, the limit is Rs.50,000). However, if your annual income is below the taxable limit, you can submit Form 15G to the bank to make sure that they do not deduct any TDS.
You can download Form 15G from your bank’s website or by visiting your nearest branch. It is mandatory to submit your PAN details while applying for this form.
Form 15G is only valid for one financial year (FY). Hence, this form has to be submitted every year, ideally at the beginning of the financial year.
You are an individual/person below the age of 60 years (other than a company or a firm).
You are a resident Indian during the applicable FY.
You are devoid of any tax liability.
Your total interest income for the FY is below the basic exemption limit.
Name and PAN details
Details about the FY
Address and contact details.
Declaration which states that the information provided is accurate.
Name of individual with tax liability
PAN and TAN details
Address and contact details
Amount of income paid
Ensure that you satisfy the eligibility criteria.
Double-check all the details filled in.
Mention the correct assessment year.
Make sure not to overstate your estimated income.
Attach a copy of your PAN card along with your Form 15G.
Take an acknowledgement slip from the bank after submitting your Form 15G.