Form 15H aims to enable individuals claim relief from TDS deductions on income generated from interest on Fixed Deposits in Banks made during a specific financial year, provided the individuals meet certain eligibility criteria. Individuals must have a PAN card for being to claim TDS relief. These forms can be submitted at banks or digitalised post offices. Certain banks offer the benefit of online submission of Form 15H through their official websites.
Form 15H is solely for senior citizens, that is, individuals who are at least 60 years of age. Since these forms are valid for only one financial year, eligible individuals wanting to claim TDS deductions on investment interest have to submit it on every financial year. To prevent the bank from deducting TDS on interest income, Form 15H has to be submitted at the start of a new financial year.
Form 15H is meant for individuals with an income from deposits, that is, interest component. Non- submission of this form may lead to TDS (Tax Deducted at Source) on this interest component. Therefore, it is essential to submit this form every financial year when the interest component on investments reaches a specific limit.
Form 15H is specifically designed to cater to a particular population of the society. Form 15H is for individuals who aim to save TDS on interest computed on certain investments. However, only a certain section of the society fulfils the following criteria:
You are eligible for Form 15H when you fulfil the following conditions:
You are an individual. Form 15H is not meant for businesses.
You are a resident of India. Non-resident Indians (NRIs) are not eligible for this form.
You are a senior citizen, that is, at least 60 years of age or will turn 60 years during the financial year for which the form is being submitted.
Tax liability calculated on your total income is zero.
The total aggregate of the interest earned through various sources in a financial year should be under a certain limit, as per the income tax slab.
The illustration below gives a clear idea about the eligibility for submission of Form 15H:
| Names | Age | Salary | Pension | Income from interest on Fixed Deposit | Form 15H Eligibility | Reason |
|---|---|---|---|---|---|---|
| Mr. Gupta | 61 | ✖ | ✖ | INR 2,40,000 | ✓ | Eligible for Form 15H as age is more than 60 years and tax applicable on total income is zero. Form 15H can be submitted despite the interest income being more than the basic exemption limit. |
| Ms. Pal | 65 | ✖ | ✓ | INR 2,00,000 | ✓ | Eligible for Form 15H as age is more than 60 years and tax applicable on total income is zero. |
| Mr. Sharma | 58 | ✓ | ✖ | INR 1,50,000 | ✖ | Not eligible for Form 15H as the age is below 60 years. |
Form 15H comprises of two sections as mentioned below. The form can be completed through a few simple steps by entering the following details.
Part 1:
Name of individual aiming for relief from TDS
Information regarding investments
Amount invested
Date of investments
Estimate amount to be received
Age and profession
Last assessment year
Declaration
Part 2:
Name and address of the individual
Period when the dividend was credited
Rate of interest on investment
Form 15H primarily serves the purpose of getting relief from TDS on interest accrued on Bank Fixed Deposits. However, its importance extends to other purposes too. These are:
An individual can avail a TDS deduction on EPF if he/she withdraws their EPF prior to the completion of 5 consecutive years of service. If an individual has an EPF balance that exceeds INR 50,000 and aims to withdraw it before the completion of this timeline, he/she may submit a Form 15H.
An individual can avail a TDS deduction from corporate bonds in case the generated income is more than INR 5,000.
An individual can claim TDS relief on income generated from post office deposits. However, the form can only be submitted at digitised post offices that deduct TDS.
There is a provision for deduction of TDS on rent if the total rental payment for a particular financial year is more than INR 1.8 lakh. If the individual’s total income is nil, an individual (when his/her total income is nil) can submit Form 15H as a request to the tenant to not deduct TDS.
An individual can submit Form 15G or 15H to a bank only with a valid PAN, failing which, a tax deduction @ 20% will be applicable. It is advisable to submit a copy of the PAN card with the cover letter.
The individual should make sure he/she receives an acknowledgment while submitting Form 15G/15H. Acknowledgment of submission of PAN details is useful if a dispute with the bank arises.
As per the revised form, the individual will need to submit the details of the Form 15G/15H submitted by him/her to other banks as well as the interest income amount mentioned in these forms.
The respective assessing officer will have access to all the information submitted by the individual to other banks and will be able to detect any incorrect information submitted by the individual, as the individual has submitted his/her PAN.
Indian law has a provision for imprisonment for a minimum of three months if an individual is found to have provided incorrect information in these declaration forms.
Individuals submitting Form 15H should keep the following guidelines in mind while filling it:
Eligibility to fill the form
Ensure accuracy of all details entered and prevent suppression or misrepresentation of details
Make sure to mention the accurate PAN number, the inability of which is liable to a deduction at a rate of 20%. Submitting a photocopy of the original PAN card is recommended.
Enter the correct year of assessment
The Indian law has a provision for imprisonment for a term of at least three months if an individual is found to have provided inaccurate details in Form 15H.
An estimate of expected income, as accurate as possible
Only complete Part 1 of the form. Part 2 is not meant to be filled by individuals seeking relief from TDS
This form is not a substitute for income tax return, which has to be duly filled and submitted separately
Ensure that you have received a receipt of acknowledgment from the bank or post office where you have submitted the form. This will safeguard your interests in case a dispute arises with the bank or post office.
The revised form makes it mandatory for an individual to submit the details of the Form 15H to other banks, along with the interest income amount mentioned by him/her in the form.
Where should you submit Form 15H?
The Income Tax Department offers eligible individuals the advantage of submitting the 15H Form at their banks or any post office to make the submission process hassle-free.
For how long is Form 15H valid?
Form 15H assesses the eligibility for relief from TDS for a particular section of Indian residents during a financial year and is valid only for that financial year. Individuals have to fill up and submit a new form in the next financial year.
What is the difference between Form 15G and Form 15H?
While Form 15G an be submitted by individuals claiming TDS relief as well as Hindu Undivided Family, Form 15H can be submitted only by the relevant individual.
In contrast to Form 15G that can be used by an individual less than 60 years of age, Form 15H is meant only for senior citizens who are at least 60 years of age.
In case of Form 15G, your total interest income should not be more than your basic tax exempt on limit for Form 15G. However, this condition is not applicable for Form 15H. Senior citizens can submit Form 15H even if the total interest for the specific financial year exceeds the basic tax exemption limit.
You will not be eligible to submit 15G in case your total aggregate income exceeds the basic tax exemption limit. In contrast, Form 15H can be submitted by a deductee for filing a non-deduction declaration despite the total aggregate income for that specific financial year exceeds the basic tax exemption limit.
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