Banks have to deduct TDS when interest income is more than Rs.10,000 in a year. The bank includes deposits held in all its branches to calculate this limit. But if your total income is below the taxable limit, you can submit Form 15G and Form 15H to the bank requesting them not to deduct any TDS on your interest.

Form 15G and Form 15H are forms you can submit to make sure TDS is not deducted on your income if you meet the conditions mentioned below. Also, you must have a PAN before applying for these forms. Form 15G and Form 15H are valid for one financial year. So you have to submit these forms every year if you are eligible. Submitting them as soon as the financial year starts will ensure the bank does not deduct any TDS on your interest income.

Conditions you must fulfill to submit Form 15G:

1. You are an individual or HUF.

2. You must be a Resident Indian.

3. You should be less than 60 years old.

4. Tax calculated on your Total Income is nil

5. The total interest income for the year is less than the minimum exemption limit of that year, which is Rs 2,50,000 for financial year 2015-16. (Limit is Rs 2.5lakhs for FY 2014-15, FY 2015-16 and FY 2016-17)

Conditions you must fulfill to submit Form 15H:

1. You are an individual.

2. You must be a Resident Indian.

3. You are 60 years old or will be 60 years old during the year for which you are submitting the form.

4. Tax calculated on your Total Income is nil