SBI eases rules for submission of Form 15G, Form 15H to avoid TDS

SBI account holders can submit Form 15G or Form 15H in all branches.

SBI account holders can submit Form 15G or Form 15H in all branches.

SBI, the country’s largest bank, has eased rules for submission of Form 15G and Form 15H by its account holders. SBI in a communication through Twitter said account holders can submit Form 15G and Form 15H at any of its bank branches, instead of just the home branch. “No need to worry about going to the home branch anymore! Now, SBI accepts your form 15G/H at any and every SBI branch,” the bank said on Twitter. A home branch is the branch where a customer has a bank account.

SBI in its Twitter post also shared the link where account holders can download Form 15G, Form 15H and other forms. As of March 2018, SBI had over 40 crore active customer accounts.

Banks are mandated to deduct TDS or tax deducted at source when interest income crosses a certain threshold in a financial year. Basically, Form 15G or Form Form 15H (for senior citizens) are self-declaration forms to state that his/her income is below the taxable limit. Form 15G and Form 15H (for senior citizens) are submitted by account holders to make sure TDS is not deducted on their income.

For example, if you have an FD with SBI and your total income is expected to be below the taxable limit, Form 15G or Form 15H can be submitted to the bank to avoid TDS on interest earned on such deposits. Banks deduct TDS at the rate of 10% where depositors have furnished their Permanent Account Number (PAN) and at the rate of 20% in cases where there is no PAN.

Ideally, Form 15G or Form 15H should be submitted at the start of the new financial year. From this financial year, TDS will not be charged to senior citizens if the interest income is less than Rs 50,000.

If an SBI account holder has internet banking facility, SBI also allows online submission of Form 15G or Form 15H. SBI account holders can log into their accounts online and submit the forms under e-services. In another recent communication, SBI has asked account holders to register their mobile numbers with the bank by 1 December 2018, failing which the bank will block access to their net banking accounts.

Meanwhile, in another customer friendly rule, SBI has also removed the limit on the amount that can be deposited in a non-home branch. Earlier the limit was Rs 25,000.

SBI has also been urging its account holders who still have magstripe debit cards to switch to the more secure EMV chip debit cards by the end of this year. SBI is replacing the magstripe debit cards free of cost. Account holders can also place a request online for the replacement of magstripe debit cards.

First Published: Sat, Nov 10 2018. 10 01 AM IST

Source: livemint