Form 15H- Save TDS on Interest Income

An individual whose total Income is below the taxable limit can submit Form 15H. This is filled to save TDS Deduction on the amount of interest. However, if the interest income of an individual is more than Rs. 10,000, then the Bank will deduct TDS on that interest income. In order to save money from TDS, an individual can fill the Form 15H.

What is Form 15H?

Form 15H can be filed by an individual who is older than the age of 65. It is a declaration form under sub Section[1C] of section 197A of the income tax Act,1961.

Form15H can be submitted by any eligible individual at the beginning of the financial year to the respective entity, for example, a bank.

Eligibility for Filing Form 15H

• The individual should be an Indian citizen.
• Earlier individual above the age of 65 could only submit this form. But, as of 1st July 2012, the age limit is changed, now it is 60.
• Individual's income is required to be below the taxable amount. In this case, a person should not have paid tax a year before the time of submission of form 15H because estimated tax should be zero.
• Form 15H must be filed to every bank from which the individual is receiving interest.
• It is not mandatory to submit the form to a bank before the payment of the first interest. It just prevents a bank from adding TDS, therefore there won't be any deduction.
• If your income is more than Rs 10,000 a year, then filing the form is mandatory.
• Form 15H is mandatory, if the individual's interest income from any kind of source except a deposit, for e.g, the interest of a loan, Bonds, advance, etc., is more than Rs 5,000 annually.

The Purpose for Submitting Form 15H

Form 15H is usually filled to prevent the deductions of TDS on interest.

TDS for EPF withdrawal

Deduction of TDS on EPF occurs when an individual withdraws it before the completion of 5 years of service. In case an individual has an EPF balance of more than Rs. 50,000 and wishes to withdraw before the completion of 5 years then you can submit Form 15H.

TDS on income generated from corporate bonds

An individual is eligible for a deduction of TDS from corporate bonds if the income exceeds Rs. 5,000.

TDS on rent

There is a deduction of TDS on rent if the total rent payment for a year exceeds Rs. 1.8 lakh. In case if an individual’s total income is nil, then you can submit Form 15H to request the tenant to not deduct TDS.

5 Important Things to be Keep in Mind While Filing Form 15H

• An individual has to submit a valid PAN. In case you Fail to submit then 20 per cent tax will be deducted. Therefore, it is recommended that a copy of the PAN with the letter of cover.

• Ensure you collect an acknowledgement while filing Form 15H. Acknowledgement helps if the bank raises disputes for submission of PAN details.

• Individuals will have to submit the details of the form 15H to any banks and also the interest income amount mentioned in the respective forms.

• Accessing officer will have access to the information submitted by an individual to other banks and also have the right to detect any incorrect/errors in the information submitted.

• As per the Indian law, it has a provision for imprisonment for a minimum of three months if a person/individual is found guilty of providing incorrect information in the form 15 H.