According to Section 194A of the Income Tax Act, the interest earned from bank accounts and other deposits is subject to TDS. This TDS is deducted if the interest earned exceeds the exemption limit for the financial year.
Therefore, senior citizens can submit Form 15H to ensure no TDS is deducted from the interest earned from fixed deposits (FDs), recurring deposits (RDs), and other savings schemes. This is only applicable if the interest income earned is within the tax limit. The limit on total interest earned for the financial year is Rs. 50,000 for senior citizens aged 60 years and above.
Read on to learn the importance of Form 15H, its eligibility criteria, and other related information.
Form 15H of the Income Tax Act is a self-declaration form for senior citizens (aged 60 years and above). It must be submitted to avoid tax deducted at source (TDS) on interest income if it is below the exemption limit. TDS is deducted if the interest earned is more than the exemption limit. For example, the limit is Rs. 40,000 (for individuals aged below 60 years) and Rs. 50,000 (for senior citizens aged above 60 years).
For total income, the basic exemption limit for senior citizens (aged 60 years and above till 80 years) is ₹3,00,000, while for super senior citizens (aged 80 years or above), it is ₹5,00,000 for the financial year 2023-24.
Form 15H can be submitted online to banks, non-banking financial companies (NBFCs), or financial institutions where the person has a deposit through the official websites or offline at the branch. However, submitting your PAN card details along with this form is mandatory.
Senior citizens can use this form to avoid TDS liability on interest earned from investments and deposits. As mentioned earlier, TDS is not deductible if the interest income earned from these deposits and investments for the financial year is within the limit of Rs 50,000 for senior citizens (60 years and above). This form has to be submitted only once a year.
For instance, if you are a senior citizen with no source of income (other than income from interest on deposits), you can submit Form 15 to the banks, NBFCS, and financial institutions where the deposit is held.
The eligibility criteria for Form 15H of the Income Tax Act are as follows:
Please note that one can download the PDF of Form 15H from the official website of the Income Tax Department and also from the online website of the bank, NBFC or financial institution.
Form 15H can be used for several purposes. These are listed below:
The essential details that need to be filled out in Form 15H are as follows:
The following table highlights the major differences between Form 15G and Form 15H:
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Form 15G vs Form 15H |
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Form 15G |
Form 15H |
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Individuals below the age of 60 can submit Form 15G. |
Only senior citizens (those aged 60 or above) can submit Form 15H. |
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It must be submitted to avoid TDS on interest income if it is below the exemption limit of Rs. 40,000. |
It must be submitted to avoid TDS on interest income if it is below the exemption limit of Rs. 50,000. |
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NRIs can submit Form 15G upon meeting all the eligibility criteria. |
NRIs are not eligible to submit Form 15H. |
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A Hindu Undivided Family (HUF) can submit Form 15G. |
Form 15H cannot be submitted by an HUF. |