Form 15H is a self-declaration form that senior citizens (aged 60 years or above) can submit to banks or financial institutions to prevent Tax Deducted at Source (TDS) on interest income, provided their total taxable income is below the exemption limit. This form ensures that eligible individuals receive their interest income without any tax deductions at the source.
Eligibility Criteria
To be eligible to submit Form 15H, an individual must:
- Be a resident of India.
- Be 60 years of age or older during the financial year.
- Have a total taxable income below the basic exemption limit (e.g., ₹3,00,000 for senior citizens).
- Have a valid Permanent Account Number (PAN).
It’s important to note that Non-Resident Indians (NRIs) are not eligible to submit Form 15H.
Uses of Form 15H
Form 15H can be submitted to avoid TDS deductions on:
- Interest income from fixed deposits, recurring deposits, and savings accounts.
- Interest earned from corporate bonds.
- Rental income exceeding ₹50,000 per month.
- Insurance commission exceeding ₹15,000.
- Proceeds from life insurance policies not exempt under Section 10(10D) exceeding ₹1,00,000.
- Premature withdrawal from Employee Provident Fund (EPF) before 5 years of continuous service, if the amount exceeds ₹50,000.
How to Fill and Submit Form 15H
- Obtain the Form: Download Form 15H from the Income Tax Department’s website or collect it from your bank or financial institution.
- Fill in Personal Details: Provide your name, PAN, date of birth, address, and contact information.
- Declare Income Details: Mention the estimated total income for the financial year and the amount of income for which the declaration is made.
- Signature: Sign the declaration confirming the accuracy of the information provided.
- Submit the Form: Submit the filled form to each bank or financial institution where you have investments.
Note: It’s advisable to submit Form 15H at the beginning of the financial year to ensure that TDS is not deducted on your income.
Important Points to Remember
- Annual Submission: Form 15H is valid for one financial year. You need to submit it every year if you meet the eligibility criteria.
- Separate Submission: If you have accounts in multiple banks or branches, submit a separate Form 15H to each.
- Accuracy: Ensure all information provided is accurate to avoid penalties for false declarations.
- TDS Deduction: If TDS has already been deducted before submission, you can claim a refund by filing your income tax return.
By submitting Form 15H, eligible senior citizens can ensure that their interest income is received without any TDS deductions, simplifying their tax obligations and cash flow management.
