Form 15H is a declaration form that can be submitted to the Income Tax Department by a person who is a senior citizen (aged 60 years or above) or by a resident who is not a senior citizen but whose estimated total income for the financial year is below the taxable limit. A person requesting exemption from TDS (tax deduction at source) on interest income from fixed deposits, recurring deposits or RD or any other interest-bearing investment instruments can do so by submitting this form to the Income Tax Department.
When is Form 15H used
TDS on interest income from interest earning investment instruments is requested using Form 15H. There are some important points to be considered while using Form 15H.
Are you eligible?
Form 15H is only for those who are senior citizens (aged 60 years and above) or non-senior citizens whose expected total income for the financial year is less than the taxable limit can file Form 15H.
Motive
The form is used to request exemption from TDS on interest income if the individual’s estimated tax liability for the financial year is nil.
When should it be submitted
The form can be obtained from the bank or other financial institution where the investor has an FD or RD or recurring deposit account. This form should be filled and submitted at the beginning of the financial year for which the exemption is requested.
… then legal action can be taken
Form 15H must be filled honestly. All the information must be absolutely correct. According to ICICI Direct, providing incorrect information is punishable and may result in legal action.
For how long is the validity
Form 15H is valid only for one financial year. Therefore, if the individual wants to avail the benefit of TDS exemption then he has to submit the form every year.
How is it different from Form 15G
Taxpayers need to submit duly filled Form 15G and 15H to the Income Tax Department to claim eligibility for non-deduction of tax at source (TDS) on their income. There are some differences between Form 15G and Form 15H, which can be understood here. Senior citizens who are 60 years or above and whose taxable income is below the exemption limit should use Form 15H instead of Form 15G for FD. If an investor is below 60 years of age and has the same circumstances, then he has to fill Form 15G.
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