According to the Income Tax Act, the tax must be deducted by a bank before payment to the customer on payments such as interest, dividend, etc. However, in case amount of TDS (Tax deducted at Source) deducted by a bank on interest exceeds the income tax payable by such assessee, then such assessee is eligible for a refund. This process can be cumbersome for the Senior Citizens. Therefore, for making it easier for a Senior Citizen, Form 15H was introduced first time in 1st June 2003 via Income Tax (Fourteenth Amendment) Rules, 2003. by the Income Tax Department. This form aims to enable senior citizens in claiming relief from TDS deductions on interest income on deposits in banks made during the financial year, provided they meet eligibility criteria.

Today, senior citizens can receive interest on securities, dividend, etc., without deduction of TDS (Tax Deducted at Source) by furnishing Form 15H. Citizens who are above 60 years of age, can avoid TDS deduction by furnishing this form if the no tax is payable and the total interest income doesn’t exceed INR 2.5 lakhs.

By furnishing Form 15H, the below-mentioned receipts could be received by the Senior Citizens without deduction of TDS.

  • Section 193 – Interest on Securities
  • Section 194 – Dividend
  • Section 194A – Interest other than interest on securities
  • Section 194K – Income in respect of units.
  • Section 194KK – Payments in respect of deposits under NSS (National Saving Scheme)

It’s important here to note that Form 15H could be filed to avoid TDS on the above-mentioned receipts only. However, this form won’t negate the TDS requirement on other incomes such as professional fee, commission, rent, etc. Individuals should have a PAN card for being able to claim TDS relief with Form 15H. This form could be submitted at the banks; however, certain banks today offer online submission facility through their official websites. This form is solely for senior citizens, and are valid for only a single financial year, eligible individuals wishing to claim the TDS deductions need to re-submit it every financial year.

Conditions to fulfill before filing Form 15H

  • The taxpayer is an individual. This form is not intended for businesses.
  • The taxpayer is a resident of India. An NRI (Non-resident Indian) isn’t eligible for to furnish this form.
  • The taxpayer is a senior citizen, i.e, the age of the taxpayer exceeds 60 or such taxpayer would turn 60 years during the financial year for which such form is submitted.
  • Tax liability calculated on the total income is nil.
  • The total aggregate of bank interest earned in a financial year should be under INR 3,00,000 for a senior citizen and INR 5,00,000 for super senior citizens (aged 80 years and above).

According to the notes to the form, this form can be filed by the senior citizens even if their income for which the exemption is claimed is more than the basic exemption limit (INR 3 lakh/ INR 5 lakh, as applicable). However, the net taxable income after all the income tax deductions available under various provisions and as applicable must be below the exemption limit.

Tags: ,

Author Bio

Qualification: CA in Practice
Company: Taxguru / Sandeep Kanoi & Associates
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 711
A Blogger by Passion and a Chartered Accountant by Profession. View Full Profile

My Published Posts

More Under Income Tax

4 Comments

  1. Arvind Agnihotri says:

    Dear CA Sandeep
    Why banks do not show TDS deductions in bank statement /passbook ?
    How to view 26AS while I am on a visit in USA for 4 months only?
    I am a super senior citizen.

Leave a Comment

Your email address will not be published. Required fields are marked *