SUBMISSION OF FORM 15G / H-TDS ON Term deposits to include Recurring Deposits AS WELL

It is important to note that the Union Budget 2015 has expanded the definition of Term deposits to include Recurring Deposits as well and modified the interest exemption limit of Rs.10,000/- per Branch to read as Rs.10,000/- per “Bank” w.e.f. 01/06/15.
TDS liability would now be determined based on the total interest accrued for all deposits tagged to the Customers’ CIF ID, if the exemption limits of some customers are breached (despite submission of the Forms 15G/H), would be liable for deduction of tax.
Form 15G/15H can be given only by resident individuals, HUFs, Trusts, AOP (i.e. persons other than NRIs, partnership firms and corporates). If the aggregate amount of interest income paid or credited or likely to be paid or credited to the concerned depositor by the Bank during the Financial year ending 31st March, 2016 exceeds the amount as specified in the table below, customer is not eligible to submit Form 15G/H. The system shall deduct TDS even if the Form 15G/H is updated in system if the interest crosses the below interest limits:

Status of Depositor Form to be submitted Maximum interest exempt up to Individuals less than 60 years / HUFs/ Trusts/ AOPs/ BOIs 15G Rs.2,50,000/- Individuals with age 60 years or above but less than 80 years (i.e. having DOB on or before 31/03/1956 but after 31/03/1936) 15H Rs.3,00,000/- Individuals with age 80 years and above (i.e. having DOB on or before 31/03/1936) 15H Rs.5,00,000/-