SCSS Form 15H — How to Avoid TDS on Your Interest (2026 Guide)
New TDS threshold: ₹1 lakh/year for senior citizens (Budget 2025). How to submit Form 15H, who qualifies, and how to claim a refund if TDS was already deducted.
What is Form 15H?
Form 15H is a self-declaration form that senior citizens (age 60+) submit to their bank or post office at the start of each financial year. By submitting it, you declare that your total estimated income for that year is below the taxable limit. On receiving Form 15H, the institution is legally obligated to pay SCSS interest without deducting any TDS, even if the interest exceeds ₹1,00,000.
SCSS TDS Threshold — Updated for FY 2025-26
| SCSS holder category | TDS threshold (FY 2025-26+) | TDS rate |
|---|---|---|
| Age 60 and above (most SCSS holders) | ₹1,00,000 per year (Budget 2025) | 10% |
| Age 55–59 (early civilian retirees) | ₹50,000 per year (old limit applies) | 10% |
| Any holder without PAN | Any amount | 20% |
📚 Which deposit amounts trigger TDS? (Age 60+, 8.2% rate)
| SCSS deposit of ₹12,19,512 | Annual interest = ₹1,00,000 exactly — no TDS |
| SCSS deposit of ₹15,00,000 | Annual interest = ₹1,23,000 — TDS on ₹23,000 |
| SCSS deposit of ₹30,00,000 (max) | Annual interest = ₹2,46,000 — TDS on ₹1,46,000 (unless 15H submitted) |
🔗 Also read
Who Can Submit Form 15H for SCSS?
| Condition | Can submit Form 15H? |
|---|---|
| Age 60+ (senior citizen), total income below taxable limit | ✅ Yes — use Form 15H |
| Age 55–59 with SCSS account (early civilian retiree) | ⚠️ Use Form 15G instead (not 15H) |
| Total income above taxable limit (old or new regime) | ❌ No — cannot submit 15H (it would be a false declaration) |
| Total income below ₹12,00,000 (new regime) | ✅ Yes — zero tax liability qualifies you |
| Total income below ₹3L/₹5L (old regime, age 60–79 / 80+) | ✅ Yes |
When to Submit — Critical Timing
Submit Form 15H at the very beginning of each financial year — ideally in the first week of April. If you submit late (e.g., in July), TDS may already have been deducted for the April–June quarter. You can reclaim it via ITR, but it delays your money by months.
- Form 15H is valid for one full financial year only — April to March
- Submit a fresh Form 15H every year in April — it is not carried forward automatically
- Submit at every institution where you hold an SCSS account separately
How to Submit Form 15H — Step by Step
- Collect Form 15H from your bank branch or post office — or download from the Income Tax India portal (incometax.gov.in)
- Fill in: your name, PAN, address, estimated income for the year, and sign the declaration
- Submit to the branch manager — bring your PAN card for verification
- Repeat at every branch where you have SCSS — one form per institution
- Some banks (SBI, HDFC, ICICI) may allow Form 15H submission via their mobile app or net banking — check with your bank
- Keep a copy with the branch's acknowledgement stamp
TDS Already Deducted? Here is How to Get It Back
- Log in to the Income Tax portal (incometax.gov.in) and check Form 26AS — it shows all TDS deducted against your PAN
- File your ITR-1 or ITR-2 for the relevant financial year before July 31 (or the extended deadline)
- Claim the TDS as a credit in your ITR
- If your net tax liability is zero, the full TDS amount will be refunded to your bank account
- Refunds typically arrive within 2–4 months of ITR filing if processed without defects
⚡ Key Takeaways
- Budget 2025 raised the TDS threshold for 60+ SCSS holders to ₹1,00,000/year — SCSS deposits up to ₹12.2L won't attract TDS
- Form 15H must be submitted every April — it is not automatically renewed
- Submit Form 15H at every bank/post office where you hold SCSS — separately
- If total income is below ₹12,00,000 (new regime), you qualify to submit 15H
- TDS deducted in error can be reclaimed by filing ITR and claiming the TDS credit
- Age 55–59 SCSS holders use Form 15G (not 15H) — different form for below-60
Is This Page Right for You?
✓ Who should use this
- Senior citizens (60+) whose total annual income is below the taxable limit
- SCSS holders with deposits above ₹12.2L (where TDS would otherwise apply)
- Retirees with only SCSS interest as income (almost always eligible)
- Anyone who had TDS deducted unnecessarily and wants to reclaim it
⚠ Who should think twice
- Those with total income above the taxable limit — submitting 15H would be a false declaration
- Age 55–59 SCSS holders — use Form 15G instead of 15H
- Anyone without a PAN card — PAN is mandatory for both 15H and TDS purposes
Pros & Cons
✓ Advantages
- Prevents TDS deduction entirely — you receive full interest without any withholding
- Simple one-page form — takes less than 10 minutes to fill
- Can save TDS of 10% on significant interest amounts (e.g., 10% on ₹1.5L = ₹15,000)
- Can now be submitted digitally at many banks — no branch visit needed
⚠ Limitations
- Must be submitted every year in April — easy to forget, causing TDS deductions
- Must be submitted separately at every SCSS institution — inconvenient for multiple accounts
- If income rises above the taxable limit, submitting 15H is a false declaration and attracts penalties
- TDS refund (if missed) takes 2–4 months via ITR filing
📋 Disclaimer & Source: All SCSS data is sourced from the Ministry of Finance, Government of India and India Post official guidelines. Current rate of 8.2% p.a. is effective from April 1, 2026 (Q1 FY 2026-27). Next review expected: June 30, 2026. TDS rules updated per Finance Act 2025 (Budget 2025). Effective FY 2025-26. Source: Income Tax Act Section 194A as amended. This page was last reviewed on April 15, 2026. Content is for informational purposes only and does not constitute financial advice. Consult a SEBI-registered financial advisor before making investment decisions. · Full Disclaimer
Frequently Asked Questions
Form 15H is specifically for senior citizens aged 60+. Form 15G is for individuals aged below 60. Both serve the same purpose (preventing TDS), but 15H has a more relaxed condition: for 15H, only the final tax liability needs to be nil (even if gross income exceeds basic exemption), whereas 15G requires both estimated income and tax to be nil.
Yes — you can submit Form 15H as long as your total tax liability for the year is zero, even if the gross SCSS interest exceeds ₹1 lakh. If your total income after deductions (80C, 80TTB, basic exemption) results in zero tax, Form 15H is valid.
Yes. Form 15H applies only to the specific institution where it is submitted. If you have SCSS at SBI and HDFC, you must submit separate Form 15H at both institutions. There is no central declaration that covers all banks.
TDS may already have been deducted for the April–June quarter before you submitted. The Form 15H will prevent TDS from July onwards. To recover the April–June TDS, file an ITR and claim the TDS credit as a refund.
The TDS threshold for 60+ holders is ₹1,00,000. At ₹80,000, no TDS is deducted anyway — you don't need Form 15H for TDS prevention. However, you still need to declare this interest income in your ITR and pay tax on it (if your total income exceeds the taxable limit).