Citizens of India can receive interest, dividends, etc, With the TDS deductions not included by filling the Form 15H. It was introduced from 1st June 2003 through the Income Tax Rules, 2003.
Tax Deduction at Source (TDS)
Under the law payment of interest, dividends tax must be paid first
By the company before giving it to the customer. The tax removed at the beginning by the payor can be used by the taxpayer as credit while filing income tax return. However, if the amount of TDS deducted is over the required interest returns, then a refund must be obtained. This process could be long and tiresome for high Citizens. that’s why the Form15H was introduced.
Citizens of 60 years and above can avoid TDS deduction by presenting Form 15H if tax cannot be and total interest income is less than Rs.2.5 lakhs for the financial year 2016-17. Also, Only national people can apply.
By filing Form 15H, you can receive the following with tax deductions.
- Section 193 –Securities interests
- Section 194 – Dividend
- Section 194A – Interest other than interest on securities
- Section 194KK – Payments in accordance to the deposits in the National Saving Scheme
- Section 194K – returns in respect of units.
Note that Form15H can only benefit the mentioned receipt above. However, filing of the form will not exclude you from other types of payment requirement for TDS like rent, professional fee, commission, etc.
Form 15H Download
A copy of Form 15H can be downloaded. Download the form, prepare and print 3 copies in duplicate. Once the forms are printed, to avoid TDS one should sign and submit the detail documents to the bank where the payment interest will be received.