Form 15H is a crucial tool for senior citizens in India, helping them prevent tax deducted at source (TDS) on interest income when their earnings are below a certain threshold. In line with Section 194A of the Income Tax Act, banks apply TDS on interest earnings exceeding specific exemption limits. For senior citizens, however, the exemption threshold is higher, allowing them to submit Form 15 H to avoid unnecessary deductions on their fixed deposits (FDs), recurring deposits (RDs), and other savings schemes. Here’s a breakdown of the purpose, eligibility, process, and benefits of Form 15 H.
Senior citizens aged 60 years or older can use Form 15 H under the Income Tax Act to self-declare their income. By submitting this form, they ensure that banks do not deduct TDS from their interest income if it falls below the specified exemption limit of 50,000 annually. This benefit extends to interest earned on deposits in banks, non-banking financial companies (NBFCs), and other financial institutions. Senior citizens must provide their Permanent Account Number (PAN) alongside Form 15 H to validate this exemption.
You may also want to know Form 26QB
The primary purpose of Form 15 H is to avoid TDS liability on interest earned from investments and deposits when within the tax exemption limit. By submitting Form 15 H annually to each institution holding the deposit, senior citizens can maximize their tax savings on interest income. Here’s why Form 15H is essential:
To be eligible for Form 15H, senior citizens must meet these criteria:
You can conveniently download the form from the Income Tax Department’s website or the bank or institution’s official site.
You may also want to know Section 80TTB
Form 15H can be used for several tax-saving purposes:
The form requires specific details to be completed accurately. Here’s a guide to filling it out:
To help distinguish Form 15G from Form 15H, here’s a quick comparison:
| Criteria | Form 15G | Form 15H |
| Eligibility | Individuals below 60 | Senior citizens aged 60 or above |
| Exemption Limit | Up to Rs. 40,000 in a financial year | Up to Rs. 50,000 in a financial year |
| NRIs | Eligible if criteria are met | NRIs not eligible |
| HUF Submission | Permissible | Not permissible |
Form 15H is a beneficial provision for senior citizens, enabling them to save on TDS if their interest income falls within the exemption limit. By utilizing this form, senior citizens can maximize their earnings without any tax deductions on their deposits. Eligible individuals should submit Form 15 H annually to each institution where they hold deposits to maximize its benefits. Understanding and correctly using Form 15 H can make a significant difference in a senior citizen’s post-retirement financial management.
If Form 15H is not submitted, TDS will be deducted from interest income. Senior citizens can claim this TDS as a refund when filing their income tax return, but it may take time for the refund to process.
No, Form 15H is only applicable to resident senior citizens. NRIs are ineligible for this form and need to explore other tax-saving options.
Form 15H must be submitted once every financial year to each institution where the senior citizen holds a deposit that earns interest.
Yes, most banks and institutions provide an option to submit Form 15H online through their official websites, simplifying the process for senior citizens.
Yes, Form 15H applies to both senior citizens (60–79 years) and super senior citizens (80 years and above) for the exemption on TDS if interest income is within the limit of Rs. 50,000.
Get the link to download the App
