15H Form

Intro to 15H Form

Form 15H is a self-declaration form used in India that allows individuals below 60 years of age to request non-deduction of Tax Deducted at Source (TDS) on interest income. This form helps taxpayers whose total income falls below the taxable limit avoid unnecessary tax deductions that would later require refund processing.

Definition of 15H Form

Form 15H is a declaration submitted to banks, post offices, and other financial institutions under Section 197A of the Income Tax Act. It certifies that the declarant’s estimated total income for the financial year will not exceed the basic exemption limit, therefore no tax is payable. Individuals below 60 years of age use this form, while senior citizens use Form 15G. The form must be submitted before the start of the financial year or before interest is credited. Financial institutions verify the declaration and, if accepted, do not deduct TDS on interest payments. This declaration is valid only for the financial year in which it is submitted and must be renewed annually.

Importance of 15H Form in HR

For HR and payroll departments, understanding Form 15H becomes relevant when managing employee benefits, retirement planning, and financial wellness programs. HR teams often educate employees about tax-saving instruments and compliance documents. When employees invest in company-offered fixed deposits or similar schemes, HR departments may facilitate Form 15H submissions to prevent unnecessary TDS deductions. This knowledge particularly helps when counseling younger employees with lower overall income who might benefit from this provision. Proper guidance reduces employees’ tax compliance burden and improves their take-home benefits. Similar to how HR teams manage other tax forms like the W8 Ben Form for international contractors, understanding Form 15H demonstrates comprehensive payroll expertise.

Examples of 15H Form

Example 1: Junior Employee with Fixed Deposit
A 28-year-old junior analyst earning ₹3.5 lakhs annually invests in a company fixed deposit scheme. Since their total income including interest remains below the taxable threshold, they submit Form 15H to the finance department. The company processes the form and credits interest without TDS deduction.

Example 2: Intern with Savings Account
A recent graduate working as an intern earns ₹2 lakhs per year. They maintain a high-balance savings account that generates significant interest. By submitting Form 15H to their bank, they prevent TDS on interest income, avoiding the need to file for refunds later.

Example 3: Part-Time Employee
A part-time employee working flexible hours earns below the exemption limit. When opening a recurring deposit, the HR team informs them about Form 15H eligibility. The employee submits the declaration, ensuring their interest income remains untouched by TDS.

How HRMS platforms like Asanify support 15H Form

Comprehensive HRMS platforms assist HR teams in managing tax-related documentation and employee financial compliance. These systems can store employee tax declarations securely, send automated reminders for annual Form 15H renewals, and maintain digital records for audit purposes. Integration with payroll modules allows HR teams to track employees whose income profiles might benefit from Form 15H guidance. Document management features enable employees to upload their tax forms directly through self-service portals. The platform’s attendance management and compensation tracking capabilities help HR teams accurately assess which employees fall below taxable thresholds. Reporting tools generate insights about employee tax optimization opportunities, enabling proactive financial wellness support.

FAQs about 15H Form

Who is eligible to submit Form 15H?

Individuals below 60 years of age whose total estimated income for the financial year is below the basic exemption limit can submit Form 15H. The form applies to interest income from banks, post offices, and other specified financial institutions.

What is the difference between Form 15G and Form 15H?

Form 15H is used by individuals below 60 years of age, while Form 15G is used by senior citizens aged 60 years and above. Both serve the same purpose of preventing TDS on interest income when total income is below taxable limits.

How often must Form 15H be submitted?

Form 15H must be submitted every financial year. The declaration is valid only for the year in which it is filed. Individuals must renew their submission annually if they continue to meet eligibility criteria.

Can Form 15H be submitted for all types of income?

No, Form 15H specifically applies to interest income from banks, post offices, cooperative societies, and similar financial institutions. It does not cover salary income, professional fees, or other income types subject to different TDS provisions.

What happens if false information is provided in Form 15H?

Providing false information in Form 15H can lead to penalties under the Income Tax Act. The declarant may face prosecution and fines. Financial institutions verify declarations and may reject forms that appear inconsistent with their records.