Personal Finance

Your Taxes

Sanjiv Chaudhary | Updated on June 14, 2020 Published on June 14, 2020

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Please inform whether a senior citizen with a monthly pension of ₹35,000, fixed deposit interest of ₹2 lakh per annum and rental income of ₹50,000 per annum is eligible to submit form 15H. I see many with annual income of ₹5 lakh and above submit form 15H and get exemption from TDS. The actual tax payable is computed at the time of filing returns and remitted if required.

N Kalyanasundaram

As per the provisions of Section 197A(1C) of the Income Tax Act, a resident individual who is a senior citizen (more than 60 years during the relevant previous/tax year) may submit a declaration in specified Form 15H (for fixed deposit interest income, rental incomes exceeding specified threshold, etc) to the deductor of tax to the effect that tax on his/her total income of the relevant previous/tax year is nil.

Based on the same, the deductor of income tax shall not be required to withhold tax at source (TDS). However, if the estimated total income is taxable in the hands of the deductee, the provisions of Section 197A(1C) shall not be available.

As per the details provided, we understand that your total/taxable income exceeds the minimum amount not chargeable to tax for a resident senior citizen for FY2019-20 (being ₹3 lakh) and also exceeds the threshold limit for claiming relief under Section 87A of the I-T Act (tax rebate of up to ₹12,500 for total income of up to ₹5 lakh).

Accordingly, you would not be eligible to submit 15H and claim the benefit of no TDS, as per the provisions of Section 197A(1C) of the I-T Act.

The writer is a practising chartered accountant. Send your queries to taxtalk@thehindu.co.in

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Published on June 14, 2020
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