I am 62-year-old and I submitted Form 15H to my bank, but TDS was still deducted on my interest income. What should I do?

I am a 62-year-old retired professional. I submitted Form 15H to my bank, but TDS was still deducted on my interest income. What should I do now? Also, when is the best time to submit Form 15H to avoid this issue in the future?

As a senior citizen, you're entitled to certain tax benefits, including the option to submit Form 15H to ensure that no TDS (Tax Deducted at Source) is deducted on your interest income—provided your total income is below the taxable limit.

The self-declaration form under Form 15H of the Income Tax Act is designed for individuals who are 60 years and above in age. Submission of this form is necessary in order to prevent tax deduction at source (TDS) on interest income that falls under the exemption limit. TDS will only be deducted if the interest earned exceeds this limit.

However, if TDS has still been deducted despite this submission, don’t worry—there are steps you can take to resolve the issue and recover your money.

If your bank has deducted TDS despite your submission of Form 15H, here’s how you can resolve the issue:

Confirm submission

First, double-check whether the Form 15H was submitted before the first interest payout in the financial year. Also ensure:

You received an acknowledgment from the bank.

Your PAN was correctly mentioned on the form. Any mistake—like a missing PAN or late submission—can result in the form being considered invalid by the bank's system.

Check PAN-Aadhaar linkage

Verify if your PAN is linked with Aadhaar. As per the Central Board of Direct Taxes (CBDT), a PAN not linked with Aadhaar is considered inoperative, which can lead to TDS deduction at a higher rate of 20%, regardless of your Form 15H submission.

Contact your bank

Speak to your bank branch directly. Politely request a clarification and show your submission proof. In many cases, the deduction is due to a delay or error in processing at the bank's end, which they can rectify once notified.

File ITR to claim refund

If the deduction was incorrect and your total income is indeed below the taxable limit, you can claim a full refund by filing your ITR for that financial year. Make sure to:

Check Form 26AS or Annual Information Statement (AIS) on the income tax portal to verify the TDS entry.

Use the TDS amount reflected there to claim the refund.

Escalate if unresolved

If your bank does not resolve the issue to your satisfaction, you may escalate the matter using their internal grievance redressal system or raise a complaint with the banking ombudsman.

To avoid such issues in the future, it’s best to submit Form 15H at the beginning of every financial year—ideally in April. This ensures:

The bank has your declaration on file before any interest is credited.

You avoid any TDS deduction right from the first quarter.

Even though there’s no legal deadline, delayed submission means TDS may be deducted on any interest paid before the form was processed. While you can always claim a refund through ITR filing, this results in blocked funds and extra compliance work—something better avoided through early submission.

Form 15G vs Form 15H

Aspect	Form 15G	Form 15H
Type of Taxpayer	Resident individuals below 60 years, HUFs, trusts, etc. (except firms and companies)	Resident individuals 60 years or older (senior citizens)
Conditions	1. Tax on total income is Nil 2. Total interest income is less than basic exemption limit (₹2.5L under old regime / ₹3L under new for FY 2024–25)	1. Tax on total income is Nil 2. Interest income basic exemption limit (₹3L under both regimes for FY 2024–25)
Resident Status	Only for residents	Only for residents
Non-resident	Not eligible	Not eligible

Source: ClearTax