Form 15H: Senior Citizens to Save TDS on Interest Income

Form 15H is a self-declaration form provided by the Income Tax Department in India. This form is used by senior citizens (60 years or older) to declare that their income is below the taxable limit, thereby seeking exemption from tax deduction at source (TDS) on certain types of income. It's important to note that Form 15H is valid for one financial year and needs to be filed every year if the individual continues to meet the eligibility criteria. Submitting Form 15H does not absolve the individual from paying taxes if their total income exceeds the exemption limit. They are required to file their income tax returns (ITR) and pay taxes accordingly. In this guide, we will discuss in detail what Form 15H is, how to fill it, who can submit it, how to submit it, and the precautions to be taken while filing this form.

What is Form 15H?

Form 15H is a self-declaration form to be filed and submitted by senior citizens (aged 60 years or older) to ensure that banks or financial institutions do not deduct TDS on the interest income earned or accrued in a financial year. This form is used when the individual's estimated total income is below the basic exemption limit (i.e., ?3,00,000 or ?5,00,000, as applicable) and there is no tax liability in that particular year. Key Points About Form 15H:

Eligibility: Only for senior citizens (60 years or older).
Interest Income Criteria: The estimated total interest income should be below the basic exemption limit.
Purpose: Prevents the deduction of TDS on interest income if the total income is below the taxable limit.
Validity: Valid for one financial year and needs to be submitted every year if the criteria are met.
Provisions of the Income Tax Act: Financial institutions and other organizations must deduct TDS while crediting interest income to an individual's account if the amount exceeds INR 50,000 for senior citizens.

Who Can File Form 15H and When?

Form 15H is valid for one financial year. It must be submitted every year at the beginning of the financial year to avoid TDS deduction by banks or any institutions liable to deduct TDS from your interest income. Eligibility to File Form 15H:

Age Criteria: Any resident individual aged 60 years or above (Resident Senior Citizens).
Income Criteria: Must have interest income.
Tax Liability: The final tax liability should be NIL.
PAN Requirement: A valid PAN must be required.

Senior citizens who meet the above criteria can prevent TDS deductions on their interest income by submitting Form 15H at the beginning of each financial year.

Why File Form 15H?

Banks and public financial institutions deduct TDS on term deposit interest income while crediting the periodic interest to your account. However, you can avoid the deduction of TDS on such interest income if your total income is below the basic exemption limit and there is no final tax liability in that particular financial year.

Interest Income: To prevent banks and financial institutions from deducting TDS on interest income.
Premature EPF Withdrawals: Any amount withdrawn, ?50,000 or more, within 5 years from the account's opening is liable for TDS. Compliance can be avoided by furnishing Form 15H, subject to the fulfilment of conditions.
Rental Income: If rental income exceeds ?2,40,000 during the year and tax is deductible, you may file Form 15H to avoid TDS deductions.
Insurance Commission: Insurance agents earning a commission exceeding ?15,000 are liable to TDS and can file Form 15H to prevent TDS deductions.
Income from Corporate Bonds: TDS is deducted on income from corporate bonds exceeding ?5,000. Form 15H can be submitted to the issuer to request non-deduction of TDS.
Post Office Deposits: Digitalized post offices also deduct TDS based on specified conditions. Form 15H can be submitted to request non-deduction of TDS.
Dividends: If dividend income exceeds ?5,000, TDS must be deducted. Form 15H can be submitted for non- or lower TDS deduction.
Proceeds of Life Insurance Policy: If such proceeds, other than those under section 10(10D), exceed ?1,00,000 in a financial year, the payer must deduct TDS @ 5%. Taxpayers can file Form 15H to avoid or for a lower deduction of TDS.

Filing Form 15H helps senior citizens declare that their income during the financial year is less than the basic exemption limit, ensuring that no TDS is deducted from their income. Note: Banks and financial institutions do not deduct TDS from savings bank accounts.

For Which Transactions Can Form 15H be Submitted?

Form 15H is used by eligible senior citizens who want to claim exemption from TDS deductions on their fixed deposit (FDR) interest income. To avoid TDS deductions, senior citizens must submit Form 15H at the beginning of each financial year.

Information Required to be Furnished in Form 15H

Form 15H is a self-declaration form for senior citizens (60 years or older) to claim exemption from TDS on interest income. The form requires the following information:

Part 1: To Be Filled by the Individual

Name of the Assessee (Declarant): Enter your full name as per PAN records.
PAN: Provide your Permanent Account Number.
Status: Indicate that you are an individual.
Previous Year: Specify the financial year for which the form is submitted.
Residential Status: Confirm that you are an Indian resident.
Address: Fill in your residential address, including city, state, and PIN code.
Contact Details: Provide your email address, telephone number, and mobile number.
Date of Birth: Enter your date of birth to confirm you are a senior citizen.

Whether Assessed to Tax Under the Income Tax Act, 1961?: Indicate "Yes" if your income exceeded the taxable limit in the past six years.

If Yes, the Latest Assessment Year You Assessed: Enter the most recent year in which your income was above the taxable limit.
Estimated Income for Which Declaration is Made: Enter the total income (including interest income) on which TDS will not be deducted.
Estimated Total Income of the Previous Year (PY): Calculate and enter your total income from all sources, such as salary, stipend, interest income, or any other income earned during the year.
Details of All Forms Filled Other Than Form 15H During the Previous Year: Provide the number of such forms filled and the total income related to those declarations.
Aggregate Amount of Income for Which Form 15H Was Filed: Enter the total income for which you filed Form 15H during the previous year.
Details of Income for Which Declaration is Filed: Provide the identification number of the relevant investment/account, the nature of income, the section under which tax is deductible, the fixed deposit account number, recurring deposit details, details of NSCs, life insurance policy number, etc.
Signature of the Declarant: Sign the form in your individual capacity.

Part 2: To Be Filled by the Authority

Name and Address of the Institution: Enter the name and address of the bank or institution receiving the form.
PAN and TAN of the Institution: Provide the permanent account number, tax deduction, and collection account number of the institution.
Receipt Date: Specify the date when the form is received by the institution.
Signature of the Receiver: The person receiving the form must sign here.

Download Form 15H

You can easily download Form 15G from our website. We have attached the form for your convenience and ready reference.

[pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2017/11/form15h.pdf"]

Can Form 15H Be Submitted Even if Your Total Income Exceeds the Tax Exemption Level?

No, Form 15H cannot be submitted if the total interest income for the year exceeds the basic exemption limit. The Income Tax Act states that Form 15H can only be issued to those who estimate their total income to be zero after considering deductions and allowances and whose total income is below the taxable limit.

Steps to Submit Form 15H with Different Banks

Form 15H can be easily submitted from your home or office. Here’s how: Internet Banking:

Log in to your bank's Internet Banking portal.
Navigate to the TDS section.
Select the option to submit Form 15H.
Fill in the required details and submit the form.

Mobile App:

Open your bank's mobile app.
Go to the TDS section or find the option to submit Form 15H.
Fill in the necessary details and submit the form.

By submitting Form 15H through Internet Banking or the Mobile app, senior citizens can save on Tax Deducted at Source (TDS) on term-deposit interest, provided they meet the eligibility criteria.

What to Do If You Forget to Submit Form 15H?

If you forget to submit Form 15H and the bank has already deducted TDS, you can take the following steps to rectify the situation:

File Your Income Tax Return:

File your income tax return to claim a refund of the excess TDS deducted. The income tax department will process and refund the excess TDS, not the banks or deductors.

Submit Form 15H Immediately:

Even if you missed the initial submission, submit Form 15H as soon as possible to prevent further TDS deductions for the remaining financial year. This will help avoid additional deductions going forward.

Provide Necessary Details:

When filing your income tax return, include all relevant details, such as the TDS amount deducted by the bank and any other necessary information. This will help the income tax department process your refund efficiently.

Keep Supporting Documents:

Maintain a record of all supporting documents, including Form 15H and proof of TDS deductions. These documents will serve as evidence during the income tax assessment process. If you are unsure about the filing process or need assistance, consider consulting with our tax professional. They can guide you through the necessary steps and ensure compliance with tax regulations. Specific Conditions Requiring ITR Filing:

If you have deposited more than one crore in a bank account.
If you have incurred expenditure of more than ?2 lakh on foreign travel.
If you have spent more than ?1 lakh on electricity consumption.
If you hold foreign assets or earn foreign income.
If you are a beneficiary of any assets located outside India.
If you wish to claim an income tax refund.
If you have carried forward or want to carry forward a loss under a head of income.

If you have received income from property held under a trust for charitable or religious purposes, a political party, research association, news agency, educational or medical institution, trade union, or a non-profit university or academic institution. Fulfilling any of these criteria makes filing an ITR mandatory, regardless of whether your income is below the exemption limit. Filing an ITR can be complex, and it's best to seek professional assistance to ensure accurate filing and avoid potential notices from the Income Tax Department. The filing of ITRs for FY 2023-24 has started. To avoid notices and penalties, it is advisable to file your ITR as soon as possible. [shortcode_19]