Senior citizens with a taxable income of up to Rs 5 lakh can now submit in banks and post offices Form 15H to claim exemption from TDS on interest income on deposits, according to a CBDT notification.Earlier, the limit for seeking Tax Deducted at Source (TDS) exemption was Rs 2.5 lakh.The Central Board of Direct Taxes (CBDT) has issued a notification amending Form 15H to give effect to the Budget announcement. The Union Budget 2019-20 has given full tax rebate to individuals having a taxable annual income of up to Rs 5 lakh, benefitting around 3 crore middle class taxpayers
The amendments by the CBDT states that banks and financial institutions would accept Form 15H from assessees whose tax liability is 'nil' after considering rebate available under Section 87A of the Income Tax Act, 1961.