May 28, 2019
Income tax: Senior citizens to get higher TDS exemption on interest income
In a major relief to senior citizens who pay tax deducted at source (TDS) and later seek refunds, the Central Board of Direct Taxes (CBDT) has notified that those aged 60 years and above with a taxable income of up to Rs 5 lakh can now submit Form 15H in banks and post offices to claim exemption from TDS on interest income from deposits. This amendment was done after the Interim Budget presented on February 1, 2019 gave tax rebate to individuals having a taxable annual income of up to Rs 5 lakh in a financial year. “Section 87A of the Income-Tax Act, 1961 has been amended vide Finance Act, 2018 which provided that a resident individual, having total income up to Rs 5 lakh, shall be entitled to a rebate of an amount being the amount of tax chargeable or Rs 12,500, whichever is less,” the CBDT press release says.