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Form 15H – Income Tax – Avoid TDS Deduction

Form 15H is an application form which can be used by senior citizens to inform the bank that there is no need for withholding Tax Deducted at Source (TDS) since the taxpayer’s income falls below the basic exemption limit. Senior Citizens in India can receive bank interest, dividend, and certain other forms of income without TDS deduction by filing Form 15H. Form 15H was introduced from 1st June 2003 through the Income Tax (Fourteenth Amendment) Rules, 2003.

Tax Deduction at Source (TDS)

Under the Income Tax Act, for payments like interest, dividend, and certain other notified incomes, TDS must be deducted by the bank or company before payment to the customer. The tax deducted at source by the payor can be used by the taxpayer as credit while filing income tax returns. However, if the amount of TDS deducted by a bank or company on interest or dividends paid is over the amount of income tax payable by the assessee, then a refund must be obtained. This process could be cumbersome for Senior Citizens. Hence, to make it easier for Senior Citizens, Form 15H was introduced by the Income Tax Department. 

Form 15H

Senior Citizens over the age of 60 years can avoid TDS deduction by submitting Form 15H if tax is not payable and total interest income is less than Rs.2.5 lakhs for the financial year 2016-17. Also, only individuals and HUFs who are resident Indians can submit the form. By filing this form, the following types of receipts can be received by a Senior Citizen without any tax deduction.

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

It is important to note that this form can be filed for avoiding TDS on the above types of receipts only. However, filing of the form will not negate the requirement for TDS on other types of payments like rent, professional fee, commission, and so on.

Latest amendment on Form 15H

As per the notification on 22nd May 2019 from Ministry of Finance, the Income Tax rule relating to Form 15H is amended effective immediately and can be called as “Income-tax (4th Amendment) Rules, 2019.” In Form 15H in Part-II, note 10, the following amendment will be implemented:

“Provided that such person shall accept the declaration in a case where income of the assessee, who is eligible for rebate of income-tax under section 87A, is higher than the income for which declaration can be accepted as per this note, but his tax liability shall be nil after taking into account the rebate available to him under the said section 87A.”.

The notification can be referred below:

Form 15H-Notification_220519

Form 15H Format

A format which is applicable for this form can be downloaded using the link provided below. Download the form, prepare and print 3 copies in duplicate. Once the forms are printed, sign and submit the document at the bank where interest payments will be received to avoid TDS deduction.

Form 15H

To know about the concept of tax audit turnover in Income Tax, click here.