How can senior citizens avoid tax deducted at source (TDS)?

I am a senior citizen with a bank fixed deposit (FD). While my total income is below the taxable limit, the bank still deducts TDS while crediting the interest earned. Is there a way to ask them not to deduct it for this financial year? - Anonymous

Yes, there is a way, and it's important to act at the start of the financial year to avoid unnecessary tax deduction.

Banks are required to deduct TDS (Tax Deducted at Source) if the interest you earn from fixed deposits (FDs) crosses Rs 1 lakh in a financial year. For non-senior citizens, this threshold is Rs 50,000.

Importance of Form 15H

If your total taxable income is below the exemption limit, you are not liable to pay any tax and can, therefore, request the bank not to deduct TDS. To do this, you need to submit Form 15H - a self-declaration that your total income is below the taxable limit and you don't expect to owe any tax. Once submitted, the bank will not deduct TDS on your interest income.

You must submit this form to every bank where you have FDs, and it's best to do it in April, at the beginning of the financial year. Submitting it late could still result in some TDS being deducted. In most cases, banks allow you to submit Form 15H online through their net banking portals or mobile apps, making the process convenient and paper-free.

If you forget to submit the form and TDS is deducted, you can still claim a refund when filing your income tax return, but that refund may take time to land in your bank account.

Also read: How will new income tax slabs and TDS thresholds impact you?

This article was originally published on April 08, 2025.