Form 15H: A Complete Guide for Saving TDS on Fixed Deposits

Form 15H is a declaration form that allows individuals who are 60 years or above to avoid TDS (Tax Deducted at Source) on their fixed deposits. This form is useful for those who earn interest income on their fixed deposits and want to avoid the hassle of filing an income tax return. In this blog, we will cover everything you need to know about Form 15H, including its eligibility criteria, how to fill it out, and when to submit it.

Eligibility Criteria for Form 15H

To be eligible for Form 15H, an individual must meet the following criteria:

1. Age: The individual must be 60 years or above.
2. Income: The individual’s total income should not exceed the basic exemption limit in a financial year. For the financial year 2022-23, the basic exemption limit for senior citizens (60 years or above but less than 80 years) is Rs. 3,00,000 and for super senior citizens (80 years or above) is Rs. 5,00,000.
3. Type of Income: The income should be in the form of interest on fixed deposits.

How to Fill Out Form 15H

To fill out Form 15H, follow the steps below:

1. Download Form 15H from the Income Tax Department’s website or collect it from your bank.
2. Fill in your name, PAN, and address.
3. Enter your age and date of birth.
4. Fill in details of the previous year’s income.
5. Mention the estimated income for the current year.
6. Indicate the amount of fixed deposit interest that you expect to receive during the current financial year.
7. Sign and date the form.

When to Submit Form 15H

You should submit Form 15H to your bank at the beginning of the financial year, preferably in April. This will ensure that the bank does not deduct TDS on the interest earned on your fixed deposits.

It is important to note that if you fail to meet any of the eligibility criteria or if your estimated income for the current year exceeds the basic exemption limit, you will not be able to submit Form 15H.

Advantages of Form 15H

1. Saving TDS: The primary advantage of Form 15H is that it helps individuals save TDS on their fixed deposits. This means that they can receive the full interest earned on their fixed deposits without any deduction of tax at source.
2. Avoidance of Filing Income Tax Return: Another advantage of Form 15H is that it enables individuals to avoid filing an income tax return, provided they meet the eligibility criteria. This is particularly beneficial for senior citizens who may find the process of filing a tax return cumbersome.
3. Simple and Easy: Filling out Form 15H is a straightforward and simple process that does not require a lot of documentation or complex procedures.
4. No Interest Loss: With Form 15H, individuals can avoid the loss of interest that may occur if TDS is deducted from their fixed deposit interest.
5. Reduced Paperwork: Since Form 15H is a declaration form, it involves less paperwork compared to other tax-related forms.

Disadvantages of Form 15H

1. Limited Eligibility: The eligibility criteria for Form 15H are limited to senior citizens only. Individuals who do not meet the age criteria cannot avail of this facility.
2. Income Threshold: The estimated income for the current year should not exceed the basic exemption limit. This means that individuals with higher income cannot submit Form 15H.
3. Bank Dependence: Form 15H needs to be submitted to the bank in which the fixed deposit is held. If the individual has multiple fixed deposits across different banks, they need to submit the form to each bank separately.

Tips for Filling Out Form 15H

Check Eligibility Criteria: Before filling out Form 15H, make sure you meet the eligibility criteria. Ensure that you are 60 years or above and that your estimated income for the current year does not exceed the basic exemption limit.

Fill in Accurate Details: It is important to fill in accurate details while filling out the form, including your name, PAN, age, and address. Any discrepancies in the information provided could result in the rejection of the form.

Provide Relevant Information: Ensure that you provide all relevant information, including the previous year’s income, estimated income for the current year, and the amount of fixed deposit interest you expect to receive during the current financial year.

Submit the Form on Time: Submit the form to your bank at the beginning of the financial year, preferably in April, to avoid any TDS deduction on your fixed deposit interest.

Keep a Copy of the Form: It is important to keep a copy of the Form 15H for your records. This can be useful in case of any discrepancies or clarifications that may arise in the future. Other Useful Links: Form 16A

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Conclusion

Form 15H is a useful tool for senior citizens who want to avoid TDS on their fixed deposits. By submitting this form to their bank, they can ensure that they receive the full interest earned on their fixed deposits without any deduction of TDS. It is important to keep in mind the eligibility criteria and to submit the form at the beginning of the financial year to avoid any hassles. If you have any doubts or queries about Form 15H, it is advisable to consult a tax expert or financial advisor.

Frequently Asked Questions (FAQ’s)

Q1.) What is Form 15H used for?

Form 15H is used to declare that an individual’s estimated total income for the current financial year is below the basic exemption limit and to request the bank not to deduct TDS on the interest earned on their fixed deposits.

Q2.) Who is eligible to submit Form 15H?

Individuals who are 60 years or above can submit Form 15H if their estimated total income for the current financial year is below the basic exemption limit.

Q3.) What is the basic exemption limit for the current financial year?

The basic exemption limit for the current financial year (2022-23) for senior citizens is Rs. 3,00,000.

Q4.) How many times can Form 15H be submitted in a financial year?

Form 15H can be submitted only once in a financial year, preferably at the beginning of the financial year.

Q5.) What happens if an individual submits Form 15H despite not meeting the eligibility criteria?

If an individual submits Form 15H despite not meeting the eligibility criteria, the form will be rejected, and TDS will be deducted on the interest earned on their fixed deposits.

Q6.) Can Form 15H be submitted online?

Some banks allow customers to submit Form 15H online, while others require physical submission of the form.

Q7.) What is the penalty for submitting a false Form 15H?

Submitting a false Form 15H is a punishable offense under the Income Tax Act, and individuals may be penalized with a penalty of up to Rs. 10,000.

Q8.) Can TDS be claimed back if Form 15H was not submitted?

If an individual is eligible to submit Form 15H but fails to do so and TDS has been deducted on the interest earned on their fixed deposits, they can claim a refund of the TDS by filing their income tax return.

Q9.) What is the difference between Form 15G and Form 15H?

Form 15G and Form 15H are similar in purpose, but Form 15G is meant for individuals below the age of 60 years, while Form 15H is meant for senior citizens aged 60 years and above.

Q10.) Do non-resident Indians (NRIs) qualify for Form 15H?

No, NRIs are not eligible to submit Form 15H as the form is meant only for resident individuals.