What is Form 15H of the Income Tax Act?

Introduction

For senior citizens in India, managing income from fixed deposits, savings, bonds, and other interest‑earning sources often involves the worry of TDS (Tax Deducted at Source). To reduce unnecessary immediate tax deductions when total income is below the taxable threshold, the Income Tax Act provides a self‑declaration form called Form 15H. By submitting this form to banks or other payers at the start of the financial year, eligible senior citizens can avoid TDS being deducted from their interest or other income, improving cash flow and avoiding refunds later.

What is Form 15H?

Form 15H is a self‑declaration under Section 197A(1C) of the Income Tax Act that a resident individual, aged 60 years or more in the relevant financial year, whose total income is not liable to tax, can submit to the payer of certain income (such as interest) requesting that no TDS should be deducted.

Essentially, if you expect your total income to be such that your tax liability is zero, you can submit Form 15H to avoid TDS being deducted at source by the bank or entity paying the income.

Who is Eligible to Submit Form 15H?

Here are the eligibility criteria for Form 15H:

• The person must be a resident individual under Indian tax law (non‑resident not eligible).
• The person must be aged 60 years or above in the relevant financial year (i.e., a senior citizen).
• The individual’s total income for the financial year must be such that tax on their income is nil (i.e., after deductions etc, no tax is payable).
• The form is used for eligible incomes such as interest from deposits, maturity proceeds of certain schemes, etc.

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When & Where to Submit Form 15H

• It is advisable to submit the form at the start of the financial year (e.g., April 1) or before the payer deducts TDS to avoid the deduction effectively.
• The form is submitted to the entity that would deduct TDS — for example, banks (for interest on FDs), post offices, corporate bond issuers, etc.
• Some banks allow online submission via internet banking/mobile app; otherwise, a physical submission is valid (subject to bank/ payer policy).
• Note: Submitting the form does not replace your other tax obligations if your income ends up taxable, you must still file ITR.

How to Fill & Submit Form 15H (Step‑by‑Step)

Here’s a basic step‑by‑step guide:

1. Obtain the latest version of Form 15H (physical or download PDF) from the bank/ payer or income tax site.
2. Fill key details: Name, PAN, Address, Date of Birth, Financial Year, estimated total income from all sources, estimated income where TDS would be otherwise deducted.
3. Confirm you are a resident Indian aged 60+, and that you have no tax liability given your estimated income.
4. Submit the form to the payer (bank etc) for the relevant account/instrument. If online: choose the option for 15H submission, upload/submit the form as per the bank’s process.
5. Retain acknowledgment copy of the form submission. Also retain proof of estimated income for future reference.
6. The payer will, based on your declaration, not deduct TDS on the relevant payments (subject to their acceptance)  but you must still track actual income and tax obligations.

Benefits of Submitting Form 15H

• Avoiding TDS deduction at source when you are not liable to pay income tax improves cash flow for senior citizens.
• Reduces the administrative burden of filing for a refund of TDS later.
• Allows you to plan your finances better, knowing TDS won’t reduce your interest/other income each time.
• Especially useful for senior citizens relying on interest income from FDs, post‑office deposits, bonds, etc.

Important Cautions & Conditions

• Even after submitting Form 15H, if your actual total income exceeds the taxable limit, you will need to pay tax when filing the return. The form does not exempt tax; it only prevents TDS.
• Correct PAN, accurate declaration of estimated income, and other details are necessary — false declaration may attract penalties under Section 277 of the Income Tax Act.
• If you submit the form for one institution, and have multiple income sources (multiple banks, etc), you may need to submit separate forms to each payer.
• If you submit the form after TDS has already been deducted, you may still need to file an ITR to claim a refund. Submission must ideally be before deduction.

Conclusion

Form 15H is a valuable tool for senior citizens in India to manage their cash flows by avoiding TDS on interest and similar incomes when they are not liable for tax. If you qualify by age (60+), residency, and income criteria, submitting Form 15H early in the financial year to the relevant institutions can save you administrative hassle and ensure you receive your full income without deduction. That said, you must ensure the declaration is accurate, your total income remains below taxable limits, and you maintain records. Proper use of Form 15H, combined with sound income tax planning, can help senior citizens manage their finances more efficiently