According to the Income Tax laws and rules, if the interest earned on recurring deposits, fixed deposits or some other saving schemes exceed than Rs. 10,000 then you will have to pay TDS (Tax Deducted at Source) for your financial year. However, as per the interim budget declared earlier this year, this amount has been revised to Rs. 40,000 for the financial year 2019-2020. This is certainly good news for all the investors who have invested in fixed deposits and some other saving schemes. Also, fixed deposit holders do not have to worry now as they can fill out form 15G in order to avoid tax deduction at the source from their net interest-earning.
What is form 15G?
Form 15G is a declaration that can be filled and submitted by fixed deposit account holders in order to get an exemption from TDS. However, for that, the individual must be a HUF and must be less than 60 years of age. People above 60 years of age, i.e., senior citizens can fill the Form 15H for the same purpose. Now, let us see how to download and Fill Form 15G Online:
Form 15G is available on the official websites of all Indian banks. Therefore, you can visit their websites and download the form without paying anything for it. To get your free copy of Form 15G, click here.
TDS is calculated at 10% of the net interest earned if your interest income is more than Rs. 40,000 in a financial year and if you have submitted your PAN details to the bank. If you haven’t submitted your PAN details to your bank, then TDS will be deducted at 20%.
Now, let us see some features of fixed deposits that make them a lucrative investment instrument:
Safety of investment
Fixed deposits are considered to be safe from market risks. Bank FDs are insured by the Deposit Guarantee Corporation of India. However, FDs from NBFCs like Bajaj Finance is equally safe since they have been given high ratings on safety and credibility by third-party credit rating institutions like ICRA and CRISIL. Therefore, if you are investing in a Bajaj Finance FD then your savings are completely secure from changing market conditions and you can earn returns up to 8.95%, which are 1-2% higher than bank FDs.
The interest rates you earn on Bajaj Finance FDs can be as high as 8.95%, and senior citizens can enjoy even higher interest rates up to 9.10%. This means that you can earn sufficient returns if you invest your savings in these FDs.
You can withdraw your fixed deposit amount anytime you wish even before the completion of the maturity period. You just need to pay a minimum penalty charge to withdraw your FD before maturity. Not only that, but you can also avail loans by pledging your FD as collateral when you need money urgently due to some emergency or crisis.
You can choose any tenor between 1 to 5 years when you are opting for Bajaj Finance FD. Moreover, you can choose to earn periodic interests or cumulative interest based on your financial requirements. For example, senior citizens might choose to receive monthly interest payouts in order to supplement the cost of medicines and utility bills. Similarly, quarterly, six-monthly, and even yearly interest payout options are available.
Such flexibility in choosing tenor helps you stagger your investments across different tenors and interest rate buckets, thereby helping you save TDS on FD interest earned.
These are some of the best features of Bajaj Finance FD, which makes it a good option for investors. Bajaj Finance FD holders can also predict their actual earnings by using the Online Fixed Deposit Calculator available on their website. For more information on the FD calculator, you can check this link – https://www.bajajfinserv.in/fixed-deposit-calculators. Choose fixed deposits that are suitable for your investment portfolio and convert your savings into a large corpus over the years!