Form 15G for SBI FD - Everything You Need to Know

Understanding Form 15G for SBI FD

Form 15G is a declaration form that can be filed with the SBI by resident individuals below the age of 60 years, Hindu Undivided Families (HUFs), or trusts to get exemption from Tax Deducted at Source (TDS) on interest received from fixed deposits. This proves to be useful for those whose overall income falls below the basic exemption threshold, as it ensures that they get the entire interest amount without any tax deduction, provided all the criteria are fulfilled.

Eligibility Criteria

Below is the requirement that you must meet so that you can submit Form 15G and avoid TDS on your SBI fixed deposits:

• Resident individuals aged under 60 years.

• The aggregate interest income from all SBI FDs in a year is less than the basic exemption threshold (₹2.5 lakhs in the old regime; ₹3 lakhs in the new regime)

• The approximate aggregate tax liability for the year is NIL

• The assessee should have a valid PAN

Why Submit Form 15G?

If the interest received on FDs is more than ₹40,000 in a financial year (₹50,000 for senior citizens), banks are required to deduct TDS at 10%. But by filing Form 15G, such eligible persons can escape this deduction and get the full interest amount.

How to Fill Form 15G for SBI FD

Here are the step-by-step guidelines to fill up Form 15G for your SBI fixed deposit accounts:

1. Download Form:

   Download the Form from the SBI website or internet banking.

2. Personal Details:

   Complete your name, PAN, status (HUF/trust/individual), previous year, and residential status.

3. Contact Details:

   Provide your address, PIN, email address, and phone number.

4. Tax Assessment:

   Indicate whether you were taxed in any of the last six years.

5. Interest Details:

   Mention the total interest income in relation to which you desire the exemption of TDS.

6. Total Income:

   State your total estimated income for the year.

7. Previous Forms:

   State the number of Form 15G submitted previously in the year, if any.

8. Declaration:

   Sign and submit the form, ascertaining that all information is correct.

How and When to Submit Form 15G for SBI FD

The best time and method to submit Form 15G for your SBI FDs as follows:

• Submit Form 15G at the start of each financial year (preferably in April) to ensure TDS is not deducted from your FD interest.

• Form 15G can be filled and submitted online through SBI’s internet banking or physically at the branch.

• If you have FDs in multiple SBI branches, submit Form 15G at each branch where your interest income is credited.

Difference Between Form 15G and Form 15H

While both Form 15G and Form 15H serve the same purpose, preventing TDS deduction on interest income, they are meant for different categories of individuals. Choosing the correct form based on age and income eligibility is essential to ensure proper TDS exemption.

Key Takeaway

SBI’s Fixed Deposits are a smart option (with competitive SBI FD rates) for those looking for secure, flexible, and low-risk avenues with better returns than regular savings accounts. With tenures ranging from a few days to under a year, these FDs offer easy liquidity and competitive interest rates. To further maximise returns, eligible individuals whose total income is below the taxable limit can submit Form 15G at the beginning of the financial year, ensuring that no TDS is deducted on interest earnings.