Every fixed deposit (FD) holder in a bank, who earns an interest of over Rs10,000 in a year is mandated to submit form 15H (senior citizens) or form 15G (other individuals) to the bank, each year before June end.
Banks deduct TDS at a rate of 10% if the FD holder has submitted her PAN details for interest that exceeds Rs10,000. In case, neither the PAN nor the Forms are submitted and interest exceeds Rs10,000 on FDs, then the bank deducts TDS at a rate of 20%. In both cases, the banks are mandated to provide TDS certificate to the FD holder.
Ameet Patel Ameet N Patel is a chartered accountant and former President of Bombay Chartered Accountants Society - BCAS
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