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What is Form 15H for Senior Citizens?
January 11 , 2013

Several retirees above 60 years of age fall below the income tax bracket i.e. since their only source of income is their pension or income from interest/dividend, their income is below what is taxable. However, fixed deposits and post office schemes in general deduct TDS on interest. If TDS is deducted for such a person, claiming back the tax paid becomes a tedious and time-consuming process.

TDS on deposits

Presently TDS is deducted at the rate of 10% if interest on all your deposits in a bank term deposit or SCSS is greater than Rs 10,000. TDS is applied every time the bank/post office pays you interest and also at the end of the financial year on interest accrued but not yet paid.

Way out of TDS- form 15H

Form 15H allows such an individual to declare to the Bank or Post Office that she is below the tax bracket. When they receive this declaration, they do not deduct TDS on interest thereafter. Of course, a wrong declaration by a person who falls in the tax bracket is a punishable offence!

Form 15H is available for download on our portal. You can download and submit it at the bank. Instead you can pick it up from the bank, fill it up and submit it.

Who should furnish form 15H?

In order to be eligible to claim interest with tax being deducted by the bank or post office you need to satisfy one condition:

Your final taxable income should be zero in the previous year. Final taxable income is what you are left with after deducting for investments and expenses allowed. Presently income above Rs 2.5 lakhs attracts tax so your final income should be less than Rs 2.5 lakhs.

If you satisfy this condition and you hold a PAN card you can submit form 15H to your bank/post office. If you do not hold a PAN card higher TDS of 20% (or 30% in case of NRO deposits) will be applicable even if you furnish form 15H. If you are younger than 60 years and satisfy the condition you need to submit form 15G.

NRIs cannot avail this benefit. 

When to furnish form 15H?

Since TDS applies every financial year as many times as you are paid interest, you must submit form 15H at the start of every financial year before interest is paid. And note that for each deposit you hold in a branch separate form 15H must be submitted if the aggregate interest on them is expected to be over Rs 10,000.

If you fail to submit form 15H on time and TDS has been deducted you won't be refunded by the bank even if you submit it later on. You would have to claim it while filing tax returns. Submitting form 15H is a much simpler procedure than going through filing IT returns so miss doing it!

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