Form 15H Definition
For people aged 60 and up, Form 15H is a self-declaration form that they can fill out to avoid having to pay tax on interest made from fixed deposits (FD) and recurring deposits (RD).
Taxes are a big part of the Indian economy and so are every document and form related to them. As an HR manager, you should know the meaning, purpose, and importance of all forms, especially if it is as important as Form 15H.
If you are here to understand Form 15H, let’s dive in and explore everything in this vital document.
Here, we will discover:
Form 15H is used to make a self-declaration form which helps individuals aged 60 or above to save Tax Deducted at Source on the interest income earned by them on their fixed deposits.
The one assessed is expected to hand in a statement to his banker in order to claim for no deduction or low deduction on fixed deposits he made.
Form 15H is an affirmation that the taxpayer is not under obligation to pay taxes on the interest income he earned. This is so long as the interest amount is less than the minimum taxable amount set by IT norms.
An individual must submit Form 15H to his income tax authority on time, that is to say, before the interest payment date or before the end of the calendar year to which it applies.
It is a declaration form made by the taxpayer that the income in the previous year was not earnings falling into the tax bracket, and as such is not liable for income tax.
In order to qualify for filing the 15H form, you must satisfy all of the conditions outlined below for the corresponding fiscal year:
● The person must be a citizen of the country.
● The declarant must be 60 years of age or older.
● The person must not have any tax obligations.
The aggregate income, encompassing the income derived from interest, shall not exceed the basic exemption threshold.
To get the 15H form, you can download it from the official website of the Tax Bureau for information. Just follow these steps to download the form:
- Access the official website of the Income Tax Department.
- Go to the “forms” section, accessed by clicking the tab on the left of the homepage.
- In the ‘Forms’ section go down to the “Income Tax Forms” option.
- Choose the year for which you need 15H.
- Flipping through some pages, you will see a ‘download’ link for Form 15H listed first.
- After it has been downloaded, print out the form and fill in anything required.
Below is a comprehensive, sequential tutorial on completing the 15H form:
● Complete all the required personal details, such as your name, PAN, age, address, and any other pertinent information specified in the form.
● Please provide the specific year of evaluation for which you plan to make a declaration.
● Please input the aggregate sum of your projected earnings for the applicable fiscal year.
● Provide the amount of income earned that is subject to tax for the prior year.
● Please provide comprehensive information regarding the nature of your income.
● Please indicate the projected income for the current fiscal year.
● Enumerate the legitimate justifications for submitting the 15H form.
● Conclude by affirming the accuracy of the information you have provided and affix your signature in the designated areas.
Now that you know the meaning and importance of Form 15H, it is time for you to know about the key factors to avoid errors or issues:
Eligibility:
Every detail of the eligibility conditions should be carefully considered. The form is suitable and can only be made by those who are over 60 years old. In addition, their projected total income must not exceed the withholding limit
Providing Accurate Information:
It is essential that all information in the form be accurate. If not, penalties for failing to comply must be served and legal liabilities faced.
Submission Date:
An individual must accurately meet the submission date. When a person fails to submit the before the date specified form, his whole year’s Tax Deducted at Source (TDS) will be withheld.
Signature:
It is necessary that the person making the statement put their signature in the designated places on the form. The form will not be deemed valid until it is properly signed.
Accurate Income Information:
The declarant must supply complete income data, including the anticipated total income, income nature and value.
Form Submission:
The form must be submitted to the correct financial institution or the relevant authorities by the deadline to avoid TDS reduction.
There you go!
That’s everything you must know about Form 15H.