Tax deduction at source (TDS) is applied on dividends, income, capital gains, and sales of an asset. This is imposed on the intermediate buyer before nullifying the final balance to the revenue collection authority and the payee. As per the Income Tax Act 1961, TDS is deducted at source.
Form 15H is an ultimate way to get rid of paying heavy tax on capital gains or incomes. This form is filled by individuals at the age of 60 years and beyond. According to a report published by LiveMint (business news portal), recently the income tax department has tailored form 15H for the senior citizens to redeem their interest gains. As per the guideline, the individual (60 years or above) possessing income or capital gains up to INR 5 lakh can appeal for TDS exemption on the interest earned from deposits.
To retrieve the form, you can either visit the nearest bank or the concerned authority or visit the Income Tax Department portal. Once you download the 15H form and fill in all the necessary details you can thereafter submit it to the bank branch to enjoy the perks of TDS exemption.
If you fall under the same age category and want to redeem the interest on your income with no imposition of the tax, then keep reading this informative piece. This article will flash some prudent points on how you (senior citizen) can save money in 2021 using form 15H.
Implied Ways for Senior Citizens to Avoid TDS Deduction
Form 15H can help you in the following ways that will facilitate more saving in the financial year 2021:
Imposition of TDS on the interest gained on fixed deposits
If you feel burdened with the heavy imposition of taxes on the interest earned from fixed deposits, simply apply for form 15H. By submitting this form you will be able to incur more from the fixed or recurring deposit instantly with no TDS deduction.
TDS applied on EPF withdrawal
As per the set criteria, if you have an accumulated income net worth Rs. 50,000 or more in 5 years, then you are liable to pay taxes. However, this case flips upside down when you submit form 15H. Whatever amount you can have collected throughout the years (should be INR 50,000 or more) withdraw it before the completion of the fifth consecutive year. Once you are done with the process of withdrawal and filing of the form, your EPF amount will not be subjected to the TDS deduction.
TDS exemption on income originated from corporate bonds
Your stemming income from the corporate bonds is also subjected to the imposition of taxes. If your income from bonds exceeds the threshold mark Rs. 5,000 per annum, TDS will be deducted certainly. By filing form 15H, you can easily swipe through the deductions and keep accumulating the gains for the future.
Imposition of tax on rent
The accommodation you choose and the rent you pay in return is taxable. If your rental payment is higher than Rs. 1.8 lakh every year, you can approach your landlord to skim this deduction using form 15H.
TDS applied on post office gains
Till now you must have got a glimpse of how ubiquitous TDS is! It is applied in almost every income from fixed to recurring depots. Similarly, it is also prevalent in the income gained from the post office. You are also liable to face TDS deduction for the Digitized Post Offices too. Once again 15H can serve to be propitious, wherein you just need to submit this form in the respective post office and appeal for exemption of TDS.
The Bottom Line
TDS deduction is a strenuous topic of discussion amongst the masses. But with an excellent government initiative, form 15H has proven to be a cutting edge. However you must keep in mind that you do not have any liability or impending debts before availing for the TDS exemption via., Form 15H.