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What is Form 15H?

 

Form 15H is an ideal tool for individuals well versed with the income tax procedure in our country. The income tax department provides a number of ways for people to save tax and this form can go a long way in reducing the amount you pay as tax. In essence, this is a self-declaration form which says that an individual is not liable for TDS in terms of certain investments. A tax assessee can use this form to communicate with the income tax department that he/she is eligible for zero or reduced TDS in terms of interest earned through certain deposits.

 

When to use Form 15H?

 

Form 15H should be used when you have an income from deposits (interest component). Failure to submit this form could result in TDS on this interest component and it is advised to use this form every financial year, when the interest earned on investments reaches a certain limit.

 

Who can submit Form 15H?

 

Form 15H is specifically designed to cater to a particular population of the society. Individuals who wish to save TDS on interest earned from certain investments can submit form 15H, subject to them meeting the following eligibility criteria.

  • Indian resident – An individual should be a resident of India in order to use this provision. NRIs cannot submit this form.

  • Age – Form 15H is designed for senior citizens only i.e., an individual should be over the age of 60 years in order to use this form.

  • Tax component – An individual should have zero tax liability after computing the final tax on the basis of his/her estimated income.

  • Individual – Only individuals can use this form. Organisations or companies cannot submit form 15H.

  • Interest aggregate – The overall aggregate of the interest earned through different sources in a particular financial year should be under the limits set in the income tax slab.

 

Components of Form 15H

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Form 15H consists of two parts, each equally important towards achieving its purpose. The form is simple to understand and fill, with Part 1 containing the following elements.

  • Name of individual claiming relief

  • Details of investment

  • The amount invested

  • Date of investing

  • An estimate of the amount which one can receive

  • Age and occupation of individual

  • Last assessment year

  • Declaration

Part 2 of the form consists of the following elements.

  • Name and address of individual

  • Period in which dividend was credited

  • Interest rate on investment

 

Uses of Form 15H

Form 15H is useful for a variety of purposes. The list of these is as follows:

  • TDS on the interest income from Fixed Deposits: Form 15H helps a senior citizen save taxes on the interest earned by him from fixed deposits and recurring deposits kept with banks.

  • TDS on EPF withdrawal: Generally, TDS is applicable to Employee Provident Fund (EPF) balances in cases where the EPF is withdrawn before completion of 5 years of regular or continuous service in a particular organization. However, if any individual has an accumulated fund of Rs. 50,000 or above and wishes to withdraw the same before completion of the continued service period of 5 years then he may do so and is free to submit Form 15H to avoid the deduction of TDS on his EPF balance. The only thing to be kept in mind is that the tax assessee should be eligible for submitting Form 15H, which means, that his taxable income inclusive of his EPF balance should not fall in the specified taxable bracket and should be free of tax liabilities.

  • TDS on income generated from corporate bonds: TDS is applicable on any income exceeding Rs. 5,000 annually generated from corporate bonds. However, the individual may submit Form 15H to the issuer and place a request for no TDS deductions, subject to meeting the required criteria in order to submit the form in question.

  • TDS on income generated from Deposits made in Post Offices: Certain Digitized Post offices may also choose to deduct TDS on an individual’s income generated via deposits made by them at the respective Post Office. In this case also, the individual is free to submit Form 15H to the Post Office and request for no TDS Deduction, subject to meeting the applicable criteria.

  • TDS on Rent: Rental payments exceeding Rs. 1.8 lakh in a year also attract TDS. However, an individual may submit Form 15H to his tenant and request him to avoid TDS deduction. The only thing to be kept in mind is that the tax to be paid on his total income in the previous year should be zero.

 

How can I Download Form 15H?

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Form 15H is available in fillable format on the website of most banks operating in India. However, you can easily download form 15H for free from the Income Tax website. Once you have downloaded the form, you have to print it, fill it out and submit it with the appropriate bank/authority in order to decrease your TDS burden. Do keep in mind that separate Form 15H have to be submitted with each bank/post office you have deposits with to reduce your overall TDS burden.  

Things to Keep in Mind While Filing Form 15H

 

  • An individual can submit Form 15G or 15H to a bank only with a valid PAN, failing which, a tax deduction @ 20% will be applicable. It is advisable to submit a copy of the PAN card with the cover letter.

  • The individual should make sure he/she receives an acknowledgment while submitting Form 15G/15H. Acknowledgment of submission of PAN details is useful if a dispute with the bank arises.

  • As per the revised form, the individual will need to submit the details of the Form 15G/15H submitted by him/her to other banks as well as the interest income amount mentioned in these forms.

  • The respective assessing officer will have access to all the information submitted by the individual to other banks and will be able to detect any incorrect information submitted by the individual, as the individual has submitted his/her PAN.

  • Indian law has a provision for imprisonment for a minimum of three months if an individual is found to have provided incorrect information in these declaration forms.

 

How to fill Form 15H

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Form 15H is divided into two parts – Part 1 and Part 2.

Part 1: This part has to be filled out by senior citizen individual applicants who wish to claim TDS on different types of income earned by them during the fiscal.

Let’s understand various points that have to be duly filled by the applicant before submitting the form.

  • Name and PAN of Applicant

  • Date of birth

  • Financial year pertaining to the mentioned income

  • Residential status

  • Complete residential address and contact information

  • The applicant has to enter ‘YES’ if he has been assessed in any of the years out of the six assessment years prior to the mentioned assessment year

  • The estimated total income for which the applicant wishes to submit a declaration

  • The estimated total income for the current year along with the estimated income in the previous point

  • The exact number of Forms filled by the applicant along with the total income pertaining to which the declaration is being filed by the applicant

  • Details pertaining to the applicant’s number of shares, account number of the deposit, NSS details and LIC policy number along with his employee code

  • The applicant then needs to diligently verify and rectify the errors, if any, before signing the form.

Part 2: The second part of the form has to be filled and submitted by the deductor who is required to deposit the TDS deducted with the bank authorities. For example: A bank, which is supposed to deduct TDS on the interest earned by a depositor on fixed/recurring deposits.

 

 

DISCLAIMER- These materials are public information and have been prepared solely for educational purposes. These materials reflect only the personal views of the author and are not individual legal advice.

It is understood that each case is fact specific and that the appropriate solution in any case will vary. Finally, the owner will not be accountable for any loses injuries or damages from the exposures or usage of this information.

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