Form 15H -For Non deduction of TDS on Interest for senior citizen

Form 15H is a self declaration which can be submitted by the eligible person for non-deduction of TDS on the specified income. Under the present article we would try to understand the applicable provisions, along with the frequently asked questions, attached with form 15H.

Eligibility criteria –

The taxpayer who is willing to file a self declaration in Form 15H needs to fulfil following eligibility criteria –

• The applicant should be an individual above the age of 60 years (i.e. he should be a senior citizen). The company or a firm is ineligible for submitting form 15H.
• The applicant should be a resident of India.
• The total income of the applicant should be less than the basic exemption limit of the respective financial year.
• The total tax calculated (after all the deductions and exemptions) of the applicant should be NIL of the respective financial year.

List of income for which non-deduction of TDS can be applied by filing Form 15H –

The eligible person can avail the benefit of non-deduction of TDS for following a list of incomes by filing the declaration in Form 15H –

• Interest on banks fixed deposits and recurring deposits, where the bank interest exceeds INR 40,000.
• Income in respect of deposits under post office and deposits under National Savings Scheme, etc.
• Income received by way of premature withdrawal of the funds from the Employees’ Provident Fund (EPF) where withdrawal is above INR 50,000.
• Income from corporate bonds, where the income exceeds INR 5,000.
• Income by way of rent, where the rental income in a year exceeds INR 2,40,000.

Time of submission of Form 15H –

Form 15H, for non-deduction of TDS for above specified incomes, is required to be submitted at the beginning of the financial year. Form 15H once submitted would be effective / valid for a time span of one year.

It should be noted that the taxpayer who is willing non-deduction of TDS, and qualifies the eligible criteria, in next year is required to re-submit the form for another financial year.

The situation in case of non-submission of Form 15H –

The taxpayer who fulfils all the eligible criteria, however, forgets to submit the required form 15H at the beginning of the year, in that case, the taxpayer is left with the following two option –

1. In case the TDS is not yet deducted, or in case the TDS is deducted periodically (i.e. quarterly, monthly or half-yearly), the taxpayer can submit the Form 15H immediately to avoid further deduction of TDS;

2. In case the TDS is already deducted, then, the taxpayer can claim the refund of excess tax paid in the form of TDS by filing an income tax return.

Penalty for false declaration in Form 15H –

In case the applicant provides an incorrect / false declaration while filing Form 15H, the person would be liable for penalty under section 277 of the Income Tax Act, 1961 as follows –

• Where the amount of tax, which would have been evaded if the false declaration has been accepted as true exceeds INR 25,000 – Penalty would be rigorous imprisonment which shall not be less than 6 months but may extend to 7 years.
• Any other case – Penalty would be rigorous imprisonment which shall not be less than 3 months but may extend to 2 years with fine.

Frequently Asked Questions (FAQ) –

What is Form 15H?

Form 15H is a self declaration which can be filed by an eligible resident senior citizen for non-deduction of TDS on the specified incomes.

Who can file Form 15H?

Form 15H can be filed by an individual whose age is more than 60 years i.e. senior citizen. Company and firms are ineligible to file form 15H. Form 15H can be filed by a resident Indian only i.e. non-resident India cannot submit form 15H.

What is the difference between From 15G and Form 15H?

Form 15G can be filed by an individual, whose age is less than 60 years or HUF or trust, whereas, Form 15H can be filed by an individual whose age is more than 60 years.

When should we submit Form 15H?

Form 15H can, generally, be submitted at the beginning of the financial year, however, in case the taxpayer fails to submit the same, and TDS is not yet deducted, it can be submitted later on also.

Also Read- Form 15G -For Non deduction of TDS on Interest for Individuals and HUF