The Central Board of Direct Taxes (CBDT) has issued a notification on 22nd May, 2019 amending Form 15H to give effect to the Budget announcement of giving full tax rebate to individuals having a taxable annual income of up to Rupees 5 Lakh.
As per notification, Senior citizens with a taxable income of up to Rupees 5 Lakh can now submit in banks and post offices Form 15H to claim exemption from TDS on interest income on deposits. Earlier, the limit for seeking Tax Deducted at Source (TDS) exemption was Rupees 2.5 Lakh.
By the Finance Act, 2019, the rebate under Section 87A was increased from Rupees 2,500 to 12,500 and thereby giving rebate to those earning income up to Rupees 5 Lakh.
Form 15H are self-declaration form stating that income of a senior citizen is below the taxable limit and hence exempt from tax. The Form can be submitted to banks to make sure TDS is not deducted on interest.
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