CBDT has issued a notification dated 22nd May, 2019 stating that Senior citizens having taxable income upto 5 lakhs can submit the Form 15H with the banks to claim TDS Exemption. The amendments by the CBDT states that banks and financial institutions would accept Form 15H from assessees whose tax liability is ‘nil’ after considering rebate available under Section 87A of the Income Tax Act, 1961.
Thus, the bank will now have to accept Form 15H from those earning income up to Rs 5 lakh, since eventually after claiming the rebate under Section 87A, their tax payable shall be ‘nil. Taxable income for senior citizens will be calculated after taking into the effects of loss from house property, deductions under chapter VI-A and rebate under section 87A to check the eligibility for submitting form 15H.
However, there are no changes in limits for accepting form 15G.