Form 15H

What Is Form 15H? A Simple Guide to Income Tax Exemption

Form 15H is a self-declaration document under section 197A(1C) of the Income Tax Act that allows senior citizens to claim certain incomes without deduction of tax at source (TDS). This form serves as a formal declaration by individuals aged 60 years and above who have minimal income and no tax liability.

The primary purpose of Form 15H is to prevent TDS deductions on various income sources, providing financial relief to retired individuals or those with limited income sources. Senior citizens can submit this form to their banks, financial institutions, or other payers to avoid automatic tax deductions from interest earnings, dividends, and other specified incomes.

To qualify for submitting Form 15H, the individual must meet specific criteria. First, the person must be a senior citizen aged 60 years or above. Additionally, their total income should fall below the basic exemption limit applicable to their age category. For senior citizens (aged 60 years to 80 years), this basic exemption limit stands at ₹3,00,000, while for super senior citizens (aged 80 years or above), the limit is ₹5,00,000 for the financial year 2023-24.

Furthermore, Form 15H can be submitted even when the interest income exceeds the standard interest exemption limit of Rs. 50,000 for senior citizens. What matters is that the taxpayer’s total income, after considering all eligible deductions, remains below the applicable basic exemption threshold, resulting in nil tax liability.

When submitting Form 15H, the aggregate interest received during the financial year (excluding interest earned on securities) should not exceed the basic exemption slab of Rs. 2.5 lakh under the Old Tax regime or Rs. 3.00 lakhs under the New Tax regime. This requirement ensures that only those genuinely eligible for tax exemption benefit from this provision.

The form encompasses several income categories where TDS can be avoided, including:

• Interest earned on bank deposits
• Dividends from companies
• Rental income
• Insurance commission
• EPF withdrawals
• National Pension System (NPS) withdrawals

It’s important to note that Form 15H differs from Form 15G, which serves a similar purpose but is designed for individuals below 60 years of age. This age-based distinction allows taxpayers to choose the appropriate form based on their eligibility.

For the form to be valid, it must be accompanied by the individual’s Permanent Account Number (PAN) details. Without PAN information, the declaration cannot be processed, and TDS would be applicable as per standard rates.

By submitting Form 15H, senior citizens effectively communicate to income payers that they anticipate their annual income to remain below taxable limits, therefore eliminating the need for tax deduction at source. This mechanism simplifies financial management for elderly citizens by preventing unnecessary tax deductions that would otherwise require filing returns to claim refunds.

Who can submit Form 15H?

Resident senior citizens aged 60 years or above qualify to submit Form 15H for income tax exemption. This self-declaration form specifically serves individuals in their retirement years who anticipate minimal or no tax liability on their annual income.

To be eligible for Form 15H submission, several criteria must be met:

• The declarant must be a resident Indian citizen
• The individual must have attained a minimum age of 60 years
• The person’s final tax liability for the financial year should be NIL
• A valid Permanent Account Number (PAN) is mandatory

Senior citizens can submit Form 15H regardless of their interest income amount, provided their total taxable income remains below the basic exemption limit. For individuals aged 60-80 years, this basic exemption limit stands at ₹3,00,000, whereas for super senior citizens (above 80 years), the limit increases to ₹5,00,000.

According to the tax regime chosen, different exemption slabs apply. Under the old tax regime, the basic exemption slab is ₹2.5 lakh, whereas under the new tax regime, it rises to ₹3.00 lakh. Consequently, senior citizens must ensure their aggregate interest income (excluding interest earned on securities) does not exceed these thresholds based on their chosen tax structure.

Form 15H becomes necessary primarily in situations where interest amounts exceed ₹50,000 in a financial year. Similarly, investments in debentures and bonds require this form if the interest from these securities collectively surpasses ₹5,000 in a fiscal year.

Certain entities and individuals are explicitly ineligible to submit Form 15H:

• Companies (both private and public)
• Partnership firms
• Non-Resident Indians (NRIs)
• Individuals whose estimated total income exceeds the applicable basic exemption limit

Form 15H differs from Form 15G in terms of age requirements. While Form 15H is exclusively for senior citizens aged 60 years and above, Form 15G serves non-senior citizens below 60 years of age. Moreover, Form 15G also applies to certain non-individual entities such as Trusts, Associations, Clubs, Hindu Undivided Family (HUF), and Societies.

Senior citizens can submit Form 15H even if their interest income exceeds the basic tax exemption limit, provided that after considering all eligible deductions, their taxable income falls below the exemption threshold. This provision offers significant relief to elderly individuals with multiple income sources yet minimal tax liability.

Since Form 15H functions as a declaration that no tax should be deducted at source, it essentially prevents unnecessary TDS deductions that would otherwise require filing returns to claim refunds. For senior citizens with limited mobility or technical knowledge, this simplifies financial management by eliminating the refund process altogether.

Know how to fill Form 10C to withdraw the pension amount accumulated in your EPS account.

When and where should Form 15H be submitted?

Form 15H submission timeframes and locations are critical aspects for senior citizens looking to avoid TDS deductions. Unlike regular tax forms with fixed deadlines, this declaration form can be submitted at various times throughout the financial year depending on specific circumstances.

Banks and financial institutions

Senior citizens should ideally submit Form 15H to their banks at the beginning of each financial year, preferably by April 1st. This early submission ensures the bank does not deduct any TDS on interest income throughout the year. However, there is no strict deadline or due date for submission. The form remains valid for only one financial year ending on March 31st, requiring annual renewal.

For multiple bank accounts, separate Form 15H submissions are necessary for each bank where deposits are held. This requirement extends to different branches of the same bank if deposit accounts were initiated physically at those branches.

Several submission methods are available:

• Branch visits to deposit-bearing branches
• Online submission through internet banking portals
• Mobile banking applications like iMobile (for ICICI Bank customers)

The primary trigger for Form 15H submission is when interest income exceeds ₹50,000 in a financial year. This threshold applies specifically to senior citizens, as opposed to the ₹40,000 limit for non-senior citizens.

Post offices and EPFO

Post offices that have implemented digital systems also accept Form 15H submissions. Senior citizens with postal savings accounts, time deposits, or recurring deposits should submit the declaration to prevent TDS deductions when interest exceeds the applicable threshold.

For Employees’ Provident Fund (EPF) withdrawals before 5 years of continuous service, TDS is typically deducted on balances exceeding ₹50,000. To avoid this deduction, eligible senior citizens can submit Form 15H directly to the EPFO office handling their account. Nevertheless, the basic requirement remains unchanged – the individual’s tax on total income (including EPF withdrawal) must be nil.

In addition to EPF, Form 15H can be submitted to prevent TDS on Life Insurance Corporation (LIC) maturity proceeds. Effective September 1, 2019, 5% TDS applies on amounts paid upon policy maturity. Without PAN details, this rate increases to 20%, making Form 15H submission particularly beneficial for eligible seniors.

Corporate bond issuers

For corporate bonds, TDS becomes applicable when interest income surpasses ₹5,000 per annum[29]. Senior citizens holding such investments can submit Form 15H directly to the bond issuer requesting non-deduction of TDS.

For listed debt securities, an alternative submission method exists. Eligible senior citizens may send an email to the registrar responsible for the specific issue, attaching the completed Form 15H and other required documents. This electronic submission simplifies the process for bondholders who might otherwise need to contact multiple issuers.

Beyond traditional paper submissions, Form 15H can often be accessed online through various institutional portals or directly from tax department websites. This digital accessibility has made the submission process more convenient, particularly for senior citizens with limited mobility.

Notably, Form 15H can also be submitted for preventing TDS on rental income (exceeding ₹2.4 lakh annually), insurance commission (exceeding ₹15,000 annually), and dividend income from companies. In each case, the fundamental requirement remains that the senior citizen’s total tax liability must be nil.

Common use cases for Form 15H

Senior citizens can utilize Form 15H across various financial transactions to prevent Tax Deducted at Source (TDS) deductions. This self-declaration document proves especially valuable in six primary scenarios where tax would typically be withheld from income sources.

TDS on bank interest

Form 15H primarily helps senior citizens avoid TDS on interest earned from bank deposits when it exceeds ₹50,000 in a financial year. Banks deduct TDS at 10% on interest income beyond this threshold for senior citizens. Through timely submission of Form 15H, elderly individuals can receive their full interest amount without deductions, fundamentally simplifying their financial management. This applies to fixed deposits, recurring deposits, and other interest-bearing accounts across banks and financial institutions.

TDS on EPF withdrawal

For Employees’ Provident Fund (EPF) withdrawals made before completing five years of continuous service, TDS becomes applicable on amounts exceeding ₹50,000. Without Form 15H, TDS rates vary significantly:

• 10% deduction if PAN is submitted
• 34.608% (maximum marginal rate) if PAN is not provided

Senior citizens anticipating no tax liability can submit Form 15H to prevent these deductions entirely. Nonetheless, it’s worth noting that EPF withdrawals after five years of continuous service or due to specific conditions like ill health, business discontinuation, or project completion remain exempt from TDS regardless.

TDS on LIC maturity

Since September 1, 2019, life insurance policy proceeds face a 5% TDS on maturity amounts. This rate increases steeply to 20% if the policyholder fails to submit PAN details. Through Form 15H submission, senior citizens with nil tax liability can receive their full maturity proceeds without any deduction. This exemption proves especially beneficial for elderly individuals who rely on insurance maturity amounts for retirement expenses.

TDS on rent

Rental income exceeding ₹2.4 lakh annually (previously ₹1.8 lakh until FY 2018-19) triggers TDS deduction by tenants. Indeed, senior citizens receiving substantial rental income can submit Form 15H directly to their tenants, requesting non-deduction of TDS. This provision applies exclusively when the senior citizen’s total income remains below the applicable basic exemption limit, resulting in zero tax liability.

TDS on insurance commission

Insurance agents earning commission above ₹15,000 per financial year face TDS deductions. Correspondingly, senior citizens working as insurance agents can submit Form 15H to request exemption from these deductions. This provision, available since FY 2017-18, enables elderly insurance agents with nil tax liability to receive their commission amounts in full.

TDS on dividends

Until recently, dividends enjoyed protection from TDS through Dividend Distribution Tax (DDT). Subsequently, effective from FY 2020-21, dividend income exceeding ₹5,000 attracts TDS at 10%. Senior citizens receiving substantial dividend income can straightaway submit Form 15H to prevent this deduction. This exemption extends to dividends from companies as well as income from corporate bonds exceeding the same threshold.

Form 15H serves as a protective mechanism across these diverse income streams, helping senior citizens maintain their full income without the hassle of claiming tax refunds later. The form’s utility spans virtually all income sources where TDS applies, making it an essential financial tool for elderly individuals with income below taxable limits.

Check out this blog on Form 12C, a complete guide for income declaration.

How to fill Form 15H?

Filling Form 15H properly requires attention to detail as this income tax exemption document contains several critical sections. The form consists of two parts – Part I to be completed by the senior citizen and Part II by the income payer.

Personal and contact details

Initially, the form requires basic identification information from the senior citizen:

• Name of Assessee (Declarant) – exactly as shown in income tax records
• PAN – 10-character alphanumeric Permanent Account Number (mandatory)
• Date of Birth – in DD-MM-YYYY format
• Previous Year – financial year for which the declaration applies (YYYY-YY format)

Upon completing identification details, address information must be provided:

• Flat/Door/Block number
• Name of premises
• Road/Street/Lane
• Area/Locality
• Town/City/District
• State (select from predefined list)
• PIN code (mandatory 6-digit number)
• Email address (must contain “@” and “.”)
• Contact information (telephone with STD code and 10-digit mobile number)

Income and tax declaration

For this section, firstly indicate whether you were assessed to tax under the Income Tax Act in any of the previous six assessment years. If answering “Yes,” mention the latest assessment year.

The form requires two critical financial declarations:

• Estimated income for which the declaration is made
• Estimated total income of the previous year (including the income mentioned above)

Additionally, if you’ve already submitted other Form 15H during the current financial year, specify:

• Total number of Form 15H filed previously
• Aggregate amount of income for which those forms were filed

Investment and account details

This section requires specific information about each income source:

• Identification number – account number, term deposit number, policy number, or other relevant identifier
• Nature of income – specify whether bank interest, insurance maturity, etc.
• Section under which tax is deductible
• Amount of income

Each distinct income source must be listed separately with complete details to ensure proper processing.

Signature and verification

The final part contains a declaration stating:

• You are a resident of India under section 6 of the Income Tax Act
• The information provided is correct and complete
• The income mentioned is not includible in anyone else’s income
• Your estimated total income including the declared income will result in nil tax liability

Following this declaration, you must sign the form with date and place details. Once completed, the form must be submitted to the income payer who will fill Part II with their details including:

• Name and identification number
• PAN and TAN
• Complete address and contact information
• Amount of income paid
• Date of declaration receipt
• Date of income payment/credit

The form becomes valid once both parts are properly completed and verified.

Form 15H vs Form 15G

The fundamental distinction between Form 15G and Form 15H lies in their applicability to different age groups. Form 15G applies to individuals below 60 years of age, Hindu Undivided Families (HUFs), trusts, and associations, whereas Form 15H exclusively serves senior citizens aged 60 years and above.

Despite their similar purpose of preventing TDS deductions, these forms have distinct eligibility criteria:

Regarding income limits, Form 15G requires the declarant’s total taxable income to fall below ₹2.5 lakh, alongside confirmation that interest income is the only source and remains below the basic exemption limit. Comparatively, Form 15H can be submitted by senior citizens even when interest income exceeds the basic exemption limit, provided their net tax liability remains nil.

Both forms require mandatory PAN submission, remain valid for one financial year, and must be resubmitted annually. Neither form is available to companies or partnership firms.

Key Takeaways

Form 15H is a powerful tax-saving tool that helps senior citizens avoid unnecessary TDS deductions across multiple income sources, simplifying their financial management during retirement years.

• Age-specific eligibility: Only senior citizens aged 60+ can submit Form 15H, with higher exemption limits (₹3 lakh for 60-80 years, ₹5 lakh for 80+ years)

• Wide income coverage: Prevents TDS on bank interest (>₹50,000), EPF withdrawals, LIC maturity, rental income (>₹2.4 lakh), and dividends (>₹5,000)

• Annual submission required: Must be submitted to each income payer separately at the start of each financial year, valid only until March 31st

• Zero tax liability prerequisite: Can only be used when total estimated income results in nil tax liability after all deductions and exemptions

• PAN mandatory: Valid PAN is essential for form acceptance; without it, higher TDS rates (up to 34.6%) may apply on certain income sources

Form 15H essentially eliminates the need for senior citizens to file tax returns solely to claim TDS refunds, making it an invaluable financial planning tool for elderly individuals with income below taxable limits.

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