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Sub-Section 1(C) of Section 197A of the Income Tax Act, effective from 1.6.2003, allows an Indian resident individual of the age of 65 years or more to withdraw from National Savings Scheme and to receive certain other incomes, without tax deduction at source, if such individual furnishes a declaration in prescribed form (Form 15H) to the effect that tax on his/her estimated total income for the year will be nil. The new provision was explained by the Central Board of Direct Taxes (CBDT) vide Circular No.7 dated 5.9.2003.
The Department of Posts also issued a Circular vide SB Order No.4/2004 dated 9.2.2004, bringing to the notice of all Heads of Circles/Regions under the Department of Posts, the changes made in the provisions relating to TDS on incomes received by Indian resident individuals of the age of 65 years or more.
This information was given by Shri S.S. Palanimanickam, Minister of State for Finance in reply to a question by Shri G. Karunakara Reddy in Lok Sabha today.
BSC/BY/CS-137/05
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