SBI, the country's leading lender, has eased the process of submitting Form 15G and Form 15H for its customers. Through its twitter handle, the state-run bank informed that now account holders can submit both the forms at any of the bank branch of SBI instead of just the home branch. A home branch of the bank is the branch where the customer or bank account holder maintains the account.
The bank's tweet regarding the development said, "No need to worry about going to the home branch anymore! Now, SBI accepts your form 15G/H at any and every SBI branch".
Also in its Twitter post, SBI shared the link for downloading form 15G, form 15H and other forms. Form 15G and Form 15H (in case of senior citizens) are self-declaration forms specifying that an individual's income falls below the taxable limit and hence these are submitted to the bank to ensure that TDS on their income is not deducted. Notably, banks are mandated to deduct tax deduction at source or TDS if interest income exceeds some threshold value in a financial year.
In case of savings account, the threshold is Rs. 10,000. So, if you earn over this amount as interest, SBI will deduct TDS at the rate of 10% for individuals who have furnished their PAN or permanent account number to the bank. For other customers, where PAN is not furnished to the bank, TDS @ 20% is deducted.
In a major change from this financial year, in case the interest income is less than Rs. 50,000 for senior citizens, no TDS will be deducted. In an ideal case, form 15G or form 15H should be submitted to the bank at the start of the new financial year.
For customers having net banking facility of SBI, both the forms can be submitted online by logging into the net banking account and submitting the forms under e-services tab.
Further as part of a recent communication, the bank has asked its account holders to register their mobile numbers latest by December 1, 2018, failing which the bank will disable their net banking account. Also, the bank in another customer-friendly move has done away with the cap on cash deposit in non-home branch, which earlier had been Rs. 25,000.