How to avoid TDS by Bank if you’re a Senior Citizen

• September 18, 2019
• CA Chandan Agarwal's Office

According to the Income Tax Act, the tax must be deducted by a bank before payment to the customer on payments such as interest, dividend, etc. However, in case amount of TDS (Tax deducted at Source) deducted by a bank on interest exceeds the income tax payable by such assessee, then such assessee is eligible for a refund. This process can be cumbersome for the Senior Citizens. Therefore, for making it easier for a Senior Citizen, Form 15H was introduced first time in 1st June 2003 via Income Tax (Fourteenth Amendment) Rules, 2003. by the Income Tax Department. This form aims to enable senior citizens in claiming relief from TDS deductions on interest income on deposits in banks made during the financial year, provided they meet eligibility criteria.

Read more on: https://taxguru.in/income-tax/avoid-tds-bank-senior-citizen.html