Form 15H: Declaration for Non-Deduction of TDS on Interest Income by Senior Citizens (as per Income Tax Act, 1961)

Form 15H is a self-declaration form submitted by resident senior citizens (individuals aged 60 years or more) to banks and other financial institutions requesting that no Tax Deducted at Source (TDS) be deducted from their interest income because their total income is below the basic exemption limit.

Requirement for Submitting Form 15H:

A resident senior citizen can submit Form 15H if they meet all the following conditions:

1. Resident Indian: The individual must be a resident in India. Non-residents cannot claim the benefits of Form 15H.
2. Age 60 Years or More: The individual must have completed 60 years of age during the previous financial year.
3. No Tax Liability: The tax calculated on the total income of the senior citizen for the financial year must be Nil.
4. PAN is Compulsory: Providing your Permanent Account Number (PAN) is mandatory for submitting Form 15H.
5. Interest Income Threshold (Bank/Co-operative Society/Post Office): Banks are required to deduct TDS under section 194A of the Income Tax Act when your interest income from them is more than a specified threshold in a financial year. The bank aggregates the interest on deposits held in all its branches to calculate this limit.
• Present Limit (as of writing): ₹50,000 for senior citizens when the payer is a bank, co-operative society, or post office.
• Proposed Limit (Budget 2025): ₹1,00,000 for senior citizens when the payer is a bank, co-operative society, or post office.

Important Note: Even if your interest income exceeds the TDS threshold, you can still submit Form 15H if your total income for the financial year (including this interest income) is below the basic exemption limit, and your tax liability is Nil. For Form 15H, the condition of interest income being less than the basic exemption limit is NOT mandatory.

Basic Exemption Limits for Financial Year 2024-25 (Assessment Year 2025-26):

• ₹3,00,000 under both the old and new tax regimes for senior citizens (aged 60 years or more).

How to Ensure No TDS Deduction if Total Income is Not Taxable:

The primary way to ensure that banks do not deduct TDS on your interest income when your total income is not taxable is by submitting Form 15H.

• Submit Form 15H: By submitting this declaration, you inform the bank that your total income for the financial year will be below the basic exemption limit, and therefore, no tax should be deducted at source from your interest income.
• Provide PAN: Ensure you provide your valid PAN while submitting the form.
• Submit Annually: Form 15H is valid for one financial year. Therefore, it needs to be submitted at the beginning of each financial year. Many banks also provide the facility to submit these forms online through their website or mobile applications.

Advantages of Submitting Form 15H:

1. Avoids Unnecessary TDS: Prevents deduction of tax at source when your income is below the taxable limit, keeping your funds readily available.
2. Improved Cash Flow: Provides better liquidity throughout the financial year.
3. Reduced Compliance Burden: Eliminates the need to claim TDS refunds by filing your income tax return.

Limitations of Form 15H:

1. Only for Resident Senior Citizens: Non-Resident Indians (NRIs) and individuals below 60 years of age cannot submit this form.
2. Primarily for Interest Income: While designed for interest income, similar declarations might exist for other income types.
3. Total Tax Liability Must Be Nil: The fundamental condition is that your estimated total tax liability for the financial year must be Nil.
4. Separate Forms for Each Institution: A separate Form 15H is required for each bank or financial institution where you hold deposits.
5. Potential Penalties for False Declaration: Submitting a false declaration can attract penalties under the Income Tax Act.
6. Subject to Rule Changes: Income tax rules and regulations, including those related to Form 15H, can be amended by the government.

Last Date for Submitting Form 15H as per the Income Tax Act, 1961:

The Income Tax Act, 1961 does not prescribe a specific "last date" for submitting Form 15H.

The practical deadline is determined by the timing of interest credit or payment by the bank or financial institution.

• To avoid TDS deduction on any particular interest payment, the form should be submitted before the interest is credited or paid.
• It is best practice to submit Form 15H at the start of the financial year (April) to cover all expected interest income for the entire year.
• If you make a new deposit or realize that your income will remain below the taxable limit later in the year, you can still submit the form, and it will be effective for subsequent interest credits/payments.

What if You Forget to Submit Form 15H?

If you forget to submit Form 15H, and TDS has already been deducted, you have the following options:

1. File Your Income Tax Return: The only way to claim a refund of the excess TDS deducted is by filing your income tax return. The Income Tax Department will process your return and issue a refund if applicable. Banks cannot directly refund the TDS once it has been deposited with the government.
2. Submit Form 15H Immediately: If TDS deduction happens quarterly, submitting Form 15H as soon as you realize your oversight can prevent further TDS deductions for the remaining quarters of the financial year.

Example to Understand Who Can Submit Form 15G and Form 15H (as provided):

Particulars	Age 50 years	Age 21 years	Age 65 years	Age 68 years
Salary	₹ 1,80,000	-	-	-
Pension	-	-	₹ 1,00,000	-
FD interest income	₹ 85,000	₹ 2,60,000	₹ 1,80,000	₹ 3,30,000
Total income before Sec 80	₹ 2,65,000	₹ 2,60,000	₹ 2,80,000	₹ 3,30,000
Deductions under Section 80	₹ 45,000	₹ 30,000	₹ 10,000	₹ 55,000
Taxable income	₹ 2,20,000	₹ 2,30,000	₹ 2,70,000	₹ 2,75,000
Basic Exemption limit (FY 24-25)	₹ 2,50,000	₹ 2,50,000	₹ 3,00,000	₹ 3,00,000
Age	< 60 years	< 60 years	> 60 years	> 60 years
Tax on total income is Nil	Yes	Yes	Yes	Yes
Interest income < Exemption Limit	Yes	No	N.A.	N.A.
Eligible to submit Form	Yes, Form 15G	Cannot submit	Yes, Form 15H	Yes, Form 15H

Key Takeaways:

• Form 15H is specifically for resident senior citizens.
• The primary condition for submitting Form 15H is that the tax calculated on your total income is Nil.
• Unlike Form 15G, for Form 15H, the interest income can be more than the basic exemption limit, as long as the total taxable income (after deductions) remains below the exemption limit, resulting in zero tax liability.
• Submit Form 15H at the beginning of each financial year to avoid TDS deductions on your interest income.