Form 15H is an ideal tool for individuals well versed in the income tax procedure in our country. The income tax department provides several ways for people to save on 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 that 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.
It should be used when you have an income from deposits. 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 Needs to Submit Form 15H?
It 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 residents: An individual should be a resident of India to use this provision. NRIs cannot submit this form.
- Age: It is designed for senior citizens only, i.e. an individual should be over the age of 60 years to use this form.
- Tax component: An individual should have zero tax liability after computing the final tax based on their estimated income.
- Individual: Only individuals can use this form. Organizations 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
It consists of two parts, 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 the individual
- Last assessment year
Part 2 consists of the following elements.
- Name and address of the individual.
- The period in which the dividend was credited.
- The interest rate on investment.