Taxes are an integral source of income for the government across the world. When we talk about India, just like other nations taxes are deducted to build the infrastructure, upkeep the public resources and keep the country running through a fiscal year. Taxes are deducted on income, expenditure, and associated financial activities. Sometimes paying too much tax on the resources you incur can be bothersome and create a burden on you. 

Form 15H is an official self-declaration statement that supports the people of India above the age of 60 to get rid of the Tax Deducted at Source (TDS) on earned interest income levied in the fixed deposits. The process of submitting the form 15H is easy and time-saving. The applicant just needs to submit the declaration form to the respective banker for no deduction of tax on fixed deposit incomes.

This method is liable and mandated by the Government of India as a facility for senior citizens. The 15H form declaration under the sub-section (1C) of section 197A of the Income-tax Act, 1961, in the Indian Constitution states that: 

“Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty-five years or more claiming certain receipts without deduction of tax.”  

This article covers the sole purpose of submitting a 15H form in 2021. Keep reading to discover the pointers. 

Central idea: of submitting form 15H to the banker 

1. TDS applied on Employees Provident Fund

EPF (Employee Provident Fund) is a scheme that aims to offer monetary perks to every salaried personnel after they retire from their respective jobs. The administrative council of the EPF procedure is the Employee Provident Fund Organisation of India. 

1. TDS applied on income incurred from the post office deposits

Tax is also deduced on the income generated from the post office deposits. The same is applicable for digital postal deposits too. By applying for the 15H declaration form, you can skip the levy of tax on such deposits. 

1. TDS charged on rent

People who migrate to different cities across the country need to pay an amount for their rented accommodation. The tax deducted at source on rent for an individual whose rental amount exceeds the per annum mark of 1.8 lakhs. If the income of the tenant is zero or nil, he can request the tenant to not charge tax with a 15H form. 

1. TDS applied on income earned through corporate bonds

Corporate bonds are a variant of debt security that is issued by the company and thereafter sold to prospective investors. Through this exchange, the company gains the capital in return while the investor is being paid a set count of interest payments on a variable or a fixed interest rate. 

1. TDS on insurance commission 

The tax is deducted on the insurance commission if the amount exceeds the threshold of 15,000 per annum. However, with the filing of the 15H declaration form, you can claim your insurance returns and display the tax applied over income on commission to be zero on the balance sheets. 

The Bottom Line 

From assets to capital gains, everything is taxable. This is the most prominent way of revenue collection by the government. Form 15H is simply a declaration statement that implies that interest gained on any capital gains or income must be free from the application of TDS. It is because, in your account’s balance sheets, the income earned is nil or zero. 

It is important to keep in mind that the gains incurred from fixed deposits are always taxable. Thus to evade the burden of paying heavy taxes you need to submit the 15H form.