Want to Avoid TDS on Fixed Deposit Interest?

Want to Avoid TDS on Fixed Deposit Interest? 

Want to Avoid TDS on Fixed Deposit Interest? Senior citizens often rely on fixed deposits (FDs) as a primary source of income. However, when interest income from FDs exceeds ₹1 lakh in a year, banks are required to deduct Tax Deducted at Source (TDS). This can be a burden, especially for those whose total income falls below the taxable threshold. Fortunately, Form 15H offers relief—especially under the new income tax regime.

✅ What Is Form 15H?

Want to Avoid TDS on Fixed Deposit Interest? Form 15H is a self-declaration form that resident senior citizens (aged 60 years or above) can submit to banks or financial institutions to avoid TDS on FD interest. It declares that their total income is below the taxable limit, and hence no tax is payable.

Want to Avoid TDS on Fixed Deposit Interest? By filing this form at the start of the financial year, retirees can prevent unnecessary deductions and avoid the hassle of later claiming a refund through Income Tax Returns (ITR).

✅ New Tax Regime Benefits for Senior Citizens (FY 2025–26)

Want to Avoid TDS on Fixed Deposit Interest? Under the new tax regime for FY 2025–26, senior citizens with total income up to ₹12 lakh are eligible for a full tax rebate under Section 87A, resulting in zero tax liability. This means:

➡️ If their only significant income is FD interest, and
➡️ Their total income does not exceed ₹12 lakh,

they can submit Form 15H to prevent TDS on interest earned—even if it crosses ₹1 lakh in a year

✅ Important Points to Note Before Filing Form 15H

While the new rules bring relief, senior citizens should be cautious before filing Form 15H:

🔸 Estimate Total Income Accurately – Include pension, rental income, and other sources.
🔸 If total income exceeds ₹12 lakh, you cannot file Form 15H. Submitting it anyway could be seen as a false declaration—liable for penalties under the Income Tax Act.

✅ TDS Threshold Raised for Seniors

As an added benefit, the government has increased the TDS threshold on interest income:

📈 Old limit: ₹50,000
📈 New limit: ₹1,00,000 (for senior citizens)

This change further reduces the chances of unwanted TDS deductions and helps streamline cash flow for retirees.

✅ Old vs New Tax Regime – Form 15H Eligibility Comparison

🔍 Seniors should evaluate their total income and choose the tax regime wisely to determine if they are eligible to file Form 15H.

✅ Filing Form 15H Doesn’t Mean You Can Skip ITR

A key compliance point:

📌 Filing Form 15H does not exempt one from filing Income Tax Returns (ITR).

Even if there’s no tax liability:

• You must disclose all income, including FD interest.
• You must file an ITR if total income before deductions exceeds the exemption limit.

✅ Final Thoughts

Want to Avoid TDS on Fixed Deposit Interest? Form 15H is a powerful tax-saving tool for senior citizens, especially under the new tax regime with its ₹12 lakh rebate benefit. It ensures that retirees don’t suffer unnecessary TDS deductions, which can disrupt cash flow and require time-consuming refund claims.

However, with this relief comes the responsibility of accurate income estimation and timely ITR filing.

💡 Pro Tip: Submit Form 15H at the start of the financial year to avoid any TDS from the first interest payout itself.

If Need Any Help Contact – https://taxgyany.com/

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