No TDS is deducted by banks on interest earned in saving bank accounts and recurring deposit accounts. We invest money in fixed deposits to get better returns.
If you go through the instructions mentioned on your FD certificate, it usually mentions: “If the depositor is not liable to pay income tax and the interest to be paid in a financial year does not exceed the maximum amount which is not chargeable to income tax, the depositor may submit a declaration in Form No. 15G / 15H so that income tax is not deducted at source.” What does the statement mean.
The below article provides a comprehensive picture of what does ‘Form No. 15G’ and ‘Form No. 15H’ mean. Banks normally ask depositors to submit Form No. 15G and Form No. 15H each year. There are different rules as to who can submit Form No. 15G and Form No. 15H.