I am a senior citizen having a bank FD. I was unable to travel to the bank to submit my form 15H and the bank has deducted TDS. What are my options?
If as a senior citizen your overall income for the financial year is below the taxable limit for the financial year you can submit FORM 15H to avoid TDS deduction. If the TDS has already been deducted by the bank before you could submit the FORM 15H for the relevant financial year you can claim a tax deduction on the TDS deducted while filling your income tax return. You will get a refund of the wrong TDS deduction promptly in your bank account by the IT department. To avoid such a situation make sure to submit your FORM 15H well in time for future assessment years.
If you want the bank not to deduct TDS, you will have to submit the form to the bank. Form 15H is a declaration under sub-section (1C) of section 197A of the Income Tax Act, 1961, to be made by an individual of the age of 60 years or more to claim certain receipts without deduction of tax. The eligibility criteria to submit this declaration is as below:
• Form 15H can only be submitted by individuals who have attained the age of 60 years at the time of submission.
• The estimated tax for the previous year should be zero. The individual should not have paid tax in the previous year because his/her income should be below the taxable amount.
• The individual should submit this form to all entities, i.e., this form will need to be submitted to each bank branch through which the individual is collecting interest.
• Form 15H should be submitted to the bank before the payment of the first interest. This is not compulsory, but it will prevent the bank from deducting the TDS.
• Form 15H will need to be submitted to the banks if the interest from one branch exceeds Rs. 10,000 a year. Now, this has been increased to Rs. 50,000.
• Form 15H will require to be submitted if the interest income from any source other than a deposit, such as, interest on a loan, advance, debentures, bonds, etc. exceeds Rs. 50,000 annually.
An individual filling and submitting this form should keep the following points in mind.
• Check eligibility – if you can use this form
• Ensure all details are entered correctly, as misleading/incorrect information could create issues later
• Mention the right assessment year in the form
• Try to get the right estimate of expected income
• Only fill Part 1 of the form. Part 2 should not be filled by you
• This form is not a replacement for your income tax return and you need to file it separately
• Don’t forget to take an acknowledgment after submitting this form
• Ensure you provide your PAN details
If you don’t submit the form, TDS will get deducted. You can get a refund when you file your tax returns.
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