Form 15G and Form 15H - Save TDS on Interest Income

Form 15G and Form 15H - Save TDS on Interest Income. Form 15G and Form 15H are important self-declaration forms introduced by the Income Tax Department of India to help taxpayers avoid the deduction of Tax Deducted at Source (TDS) on certain types of income, especially interest income. These forms are most beneficial for individuals whose income falls below the taxable limit but would still face TDS deductions due to the nature of their earnings. This article provides a complete explanation of Form 15G and Form 15H, including their purpose, eligibility criteria, where and how they can be submitted, how to fill them correctly, and what to do in case of missed submission. Each section below explains these forms in detail to help you file them correctly and on time.
What is Form 15G and Form 15H?
Form 15G and Form 15H are self-declaration forms that individuals can submit to financial institutions to prevent TDS from being deducted on their income. These forms are particularly useful for taxpayers earning interest income through fixed deposits, recurring deposits, post office savings, or corporate bonds.
Form 15G is intended for resident individuals below 60 years of age, Hindu Undivided Families (HUFs), and trusts. It ensures that TDS is not deducted if the total taxable income is below the basic exemption limit.
Form 15H is exclusively for resident senior citizens who are 60 years or older. The major benefit for senior citizens is that even if their interest income exceeds the basic exemption limit, they can still submit Form 15H if their total tax liability for the year is nil. This means senior citizens have a broader scope to claim exemption from TDS using Form 15H.
Who Can Submit Form 15G and Form 15H?
Eligibility for Form 15G:

The person must be a resident individual below 60 years, a HUF, or a trust.

The applicant should not be a company or firm.

Total taxable income after deductions must be below the basic exemption limit. For example, if your total income is Rs. 2.4 lakh and the exemption limit is Rs. 2.5 lakh, then you are eligible.

There should be no final tax liability after claiming deductions under various sections like 80C, 80D, etc.

Eligibility for Form 15H:

The person should be a resident senior citizen aged 60 years or more.

The total income may include interest income more than the basic exemption limit, but the net tax liability must be zero.

Even if the interest income is Rs. 3.5 lakh but deductions under 80C reduce the taxable income below Rs. 3 lakh, Form 15H can be submitted.

Purpose of Form 15G and Form 15H
The primary purpose of these forms is to prevent the deduction of TDS on interest income or other incomes where TDS is applicable. Financial institutions are required to deduct TDS if interest income exceeds a specified threshold, irrespective of the taxpayer’s total income.
If a person’s total income is below the taxable limit, they should not have to face TDS deductions. Submitting these forms helps such individuals avoid TDS and retain their full interest income without any deduction. This simplifies the process and avoids the delay involved in seeking a refund later by filing an income tax return.
TDS Threshold Limits under Section 194A
Section 194A of the Income Tax Act lays down the rules for TDS deduction on interest (excluding interest on securities). As per the original provisions:

TDS is applicable if the interest income exceeds Rs. 40,000 for individuals below 60 years.

For senior citizens, the limit is Rs. 50,000.

After Budget 2025, the revised proposed limits are:

Rs. 10,000 for general interest payments like those from companies.

Rs. 50,000 if the interest is received from banks, co-operative societies, or post offices.

Rs. 1,00,000 for senior citizens.

These thresholds help define who needs to submit Form 15G or Form 15H based on their interest earnings.
Where Can Form 15G and Form 15H Be Submitted?
These forms are not limited to just banks. Various institutions where TDS is applicable may require these forms:

Banks: Banks deduct TDS on fixed and recurring deposit interest once it crosses the limit. Submit Form 15G/H to your bank at the start of the financial year.

Post Offices: Post office deposits also attract TDS if interest exceeds the threshold, especially in digitised post offices.

EPFO: If you withdraw your Employees' Provident Fund (EPF) before 5 years of continuous service and the amount is over Rs. 50,000, TDS is applicable. Submitting Form 15G/15H can avoid this deduction.

LIC Policies: Life insurance maturity proceeds are taxed if they are not exempt under Section 10(10D). If the amount exceeds Rs. 1 lakh, TDS applies unless Form 15G/H is submitted.

Corporate Bonds: If you hold corporate bonds and receive interest exceeding Rs. 5,000, TDS is deducted. Use Form 15G/15H to claim exemption.

Rental Income: If rent exceeds Rs. 2.4 lakh annually, TDS is applicable. If you qualify, Form 15G/15H can be given to the tenant.

Dividend Income: When dividend income exceeds Rs. 5,000, companies deduct TDS. Forms 15G/15H can help avoid deduction.

Insurance Commission: TDS is deducted on commission above Rs. 15,000. Form 15G/H can be used to avoid deduction.

How to Fill Form 15G and Form 15H?
Filling these forms accurately is essential for avoiding TDS. Here's a step-by-step explanation of the fields:

Name of Declarant: Enter your full name exactly as in your PAN card.

Status: Mention 'Individual' or 'HUF'.

Previous Year: Mention the financial year for which you are submitting the form.

Residential Status: Only Indian residents are eligible. Confirm this before filing.

Contact Details: Full address, city, pin code, phone, and email are to be filled.

Tax Assessment in Last 6 Years: State whether you were ever assessed to tax.

Latest Assessment Year: Provide the last assessment year in which your income was taxable.

Estimated Income: Enter the income from interest or other sources for which you are submitting the form.

Total Estimated Income: Mention all income from salary, interest, rent, commission, etc.

Details of Previous Forms Filed: If you've submitted 15G/15H before during the year, mention that.

Account and Investment Details: Provide identification numbers like FD account numbers, policy numbers, etc.

Signature: Sign the form yourself. If you're submitting on behalf of a HUF or other entity, mention the capacity.

When Should You Submit Form 15G or 15H?
It’s best to submit these forms at the beginning of the financial year (April) so that TDS is not deducted on any interest payments throughout the year. If submitted late, the bank or deductor may deduct TDS for the previous quarters, and only the remaining quarters can be saved from deductions.
Online Submission of Form 15G and Form 15H
Many banks offer online submission options through their net banking portals or mobile apps. This is a faster and more convenient method. Here’s how you can do it:

Log into your bank account online.

Navigate to the section for Tax Services or Forms.

Select and fill Form 15G or 15H.

Confirm the details and submit.

Save the confirmation message or download the acknowledgement receipt.

Income Tax Filing and TDS Refund
If you forget to submit Form 15G or 15H and the institution deducts TDS, the only way to get your money back is by filing an income tax return. Once your return is processed, the Income Tax Department will refund the excess TDS to your bank account.
Make sure you declare the correct income and TDS amounts. You can check Form 26AS on the income tax website to verify TDS details before filing your return.
Consequences of Wrong Declaration
Filing Form 15G or 15H when you're not eligible can attract legal penalties. Submitting a false declaration under Section 277 of the Income Tax Act may result in imprisonment ranging from three months to seven years and a fine. Always check your estimated income and tax liability before submitting these forms.
Responsibilities of TDS Deductors
Entities accepting Form 15G or Form 15H have certain responsibilities under the law:

Allot a Unique Identification Number (UIN) for every declaration received.

File quarterly statements of the forms received to the Income Tax Department.

Maintain these records for a minimum of seven years for audit or inspection.

Conclusion
Form 15G and Form 15H are valuable tools for managing your tax deductions on interest income. They ensure that individuals whose income is below the taxable limit are not burdened with unnecessary TDS and refund claims. To make the most of these forms, it’s important to understand the eligibility criteria, submit them on time every year, and fill in all the details accurately. Always keep copies of the submitted forms and acknowledgment receipts for future reference.
If you need any help in filing Form 15G and Form 15H then you can connect with Compliance Calendar’s experts through email info@ccoffice.in or Call/Whatsapp at +91 9988424211.
FAQs
Q1. Can I submit Form 15G or 15H if I am a Non-Resident Indian (NRI)?
Ans. No, only resident individuals are eligible to submit Form 15G or Form 15H. These forms are not applicable to Non-Resident Indians (NRIs), even if their income in India is below the taxable limit. NRIs are required to follow different tax deduction rules under the Income Tax Act.
Q2. What is the difference between Form 15G and Form 15H?
Ans. Form 15G is for resident individuals below the age of 60 years, HUFs, and trusts whose total income is below the basic exemption limit and have no tax liability. Form 15H is for senior citizens aged 60 years and above. Unlike Form 15G, Form 15H allows senior citizens to claim TDS exemption even if their interest income exceeds the exemption limit, provided the total tax liability is nil after deductions.
Q3. Is PAN mandatory for submitting Form 15G or Form 15H?
Ans. Yes, quoting a valid PAN (Permanent Account Number) is mandatory while submitting Form 15G or Form 15H. If PAN is not furnished, TDS will be deducted at a higher rate of 20% even if the forms are submitted.
Q4. Can I file Form 15G or Form 15H if my income includes FD interest in a joint account?
Ans. Yes, you can file Form 15G or Form 15H for interest earned through a joint account, but only if your name is the primary holder and the income is taxed in your hands. If you are the secondary holder, then the TDS obligation lies with the primary account holder.
Q5. Can I submit Form 15G/15H to multiple banks or branches?
Ans. Yes, you can submit Form 15G or Form 15H to multiple banks or branches where you hold fixed deposits or earn interest income. However, you must disclose the total estimated income from all sources in each form submission and ensure your cumulative income is within the exemption limit.
Q6. What happens if I forgot to submit Form 15G or Form 15H?
Ans. If you forgot to submit the form and TDS has already been deducted, you can claim a refund by filing your income tax return (ITR) at the end of the financial year. Also, you can still submit the form later in the financial year to avoid further TDS deductions for the remaining period.
Q7. Is submission of Form 15G or Form 15H a one-time requirement?
Ans. No, Form 15G and Form 15H are valid only for one financial year. You need to submit the form every year at the beginning of the financial year to continue enjoying exemption from TDS on eligible incomes.
Q8. Can I submit Form 15G or Form 15H offline and online both?
Ans. Yes, most banks accept both offline and online submissions of Form 15G and Form 15H. For online submission, you can use your bank’s internet banking or mobile app, while for offline submission, you must fill out a physical form and submit it at the branch.

Form 15G and Form 15H are important self-declaration forms introduced by the Income Tax Department of India to help taxpayers avoid the deduction of Tax Deducted at Source (TDS) on certain types of income, especially interest income. These forms are most beneficial for individuals whose income falls below the taxable limit but would still face TDS deductions due to the nature of their earnings. This article provides a complete explanation of Form 15G and Form 15H, including their purpose, eligibility criteria, where and how they can be submitted, how to fill them correctly, and what to do in case of missed submission. Each section below explains these forms in detail to help you file them correctly and on time.

What is Form 15G and Form 15H?

Form 15G and Form 15H are self-declaration forms that individuals can submit to financial institutions to prevent TDS from being deducted on their income. These forms are particularly useful for taxpayers earning interest income through fixed deposits, recurring deposits, post office savings, or corporate bonds.

Form 15G is intended for resident individuals below 60 years of age, Hindu Undivided Families (HUFs), and trusts. It ensures that TDS is not deducted if the total taxable income is below the basic exemption limit.

Form 15H is exclusively for resident senior citizens who are 60 years or older. The major benefit for senior citizens is that even if their interest income exceeds the basic exemption limit, they can still submit Form 15H if their total tax liability for the year is nil. This means senior citizens have a broader scope to claim exemption from TDS using Form 15H.

Who Can Submit Form 15G and Form 15H?

Eligibility for Form 15G:

The person must be a resident individual below 60 years, a HUF, or a trust.
The applicant should not be a company or firm.
Total taxable income after deductions must be below the basic exemption limit. For example, if your total income is Rs. 2.4 lakh and the exemption limit is Rs. 2.5 lakh, then you are eligible.
There should be no final tax liability after claiming deductions under various sections like 80C, 80D, etc.

Eligibility for Form 15H:

The person should be a resident senior citizen aged 60 years or more.
The total income may include interest income more than the basic exemption limit, but the net tax liability must be zero.
Even if the interest income is Rs. 3.5 lakh but deductions under 80C reduce the taxable income below Rs. 3 lakh, Form 15H can be submitted.

Purpose of Form 15G and Form 15H

The primary purpose of these forms is to prevent the deduction of TDS on interest income or other incomes where TDS is applicable. Financial institutions are required to deduct TDS if interest income exceeds a specified threshold, irrespective of the taxpayer’s total income.

If a person’s total income is below the taxable limit, they should not have to face TDS deductions. Submitting these forms helps such individuals avoid TDS and retain their full interest income without any deduction. This simplifies the process and avoids the delay involved in seeking a refund later by filing an income tax return.

TDS Threshold Limits under Section 194A

Section 194A of the Income Tax Act lays down the rules for TDS deduction on interest (excluding interest on securities). As per the original provisions:

TDS is applicable if the interest income exceeds Rs. 40,000 for individuals below 60 years.
For senior citizens, the limit is Rs. 50,000.

After Budget 2025, the revised proposed limits are:

Rs. 10,000 for general interest payments like those from companies.
Rs. 50,000 if the interest is received from banks, co-operative societies, or post offices.
Rs. 1,00,000 for senior citizens.

These thresholds help define who needs to submit Form 15G or Form 15H based on their interest earnings.

Where Can Form 15G and Form 15H Be Submitted?

These forms are not limited to just banks. Various institutions where TDS is applicable may require these forms:

Banks: Banks deduct TDS on fixed and recurring deposit interest once it crosses the limit. Submit Form 15G/H to your bank at the start of the financial year.
Post Offices: Post office deposits also attract TDS if interest exceeds the threshold, especially in digitised post offices.
EPFO: If you withdraw your Employees' Provident Fund (EPF) before 5 years of continuous service and the amount is over Rs. 50,000, TDS is applicable. Submitting Form 15G/15H can avoid this deduction.
LIC Policies: Life insurance maturity proceeds are taxed if they are not exempt under Section 10(10D). If the amount exceeds Rs. 1 lakh, TDS applies unless Form 15G/H is submitted.
Corporate Bonds: If you hold corporate bonds and receive interest exceeding Rs. 5,000, TDS is deducted. Use Form 15G/15H to claim exemption.
Rental Income: If rent exceeds Rs. 2.4 lakh annually, TDS is applicable. If you qualify, Form 15G/15H can be given to the tenant.
Dividend Income: When dividend income exceeds Rs. 5,000, companies deduct TDS. Forms 15G/15H can help avoid deduction.
Insurance Commission: TDS is deducted on commission above Rs. 15,000. Form 15G/H can be used to avoid deduction.

How to Fill Form 15G and Form 15H?

Filling these forms accurately is essential for avoiding TDS. Here's a step-by-step explanation of the fields:

Name of Declarant: Enter your full name exactly as in your PAN card.
Status: Mention 'Individual' or 'HUF'.
Previous Year: Mention the financial year for which you are submitting the form.
Residential Status: Only Indian residents are eligible. Confirm this before filing.
Contact Details: Full address, city, pin code, phone, and email are to be filled.
Tax Assessment in Last 6 Years: State whether you were ever assessed to tax.
Latest Assessment Year: Provide the last assessment year in which your income was taxable.
Estimated Income: Enter the income from interest or other sources for which you are submitting the form.
Total Estimated Income: Mention all income from salary, interest, rent, commission, etc.
Details of Previous Forms Filed: If you've submitted 15G/15H before during the year, mention that.
Account and Investment Details: Provide identification numbers like FD account numbers, policy numbers, etc.
Signature: Sign the form yourself. If you're submitting on behalf of a HUF or other entity, mention the capacity.

When Should You Submit Form 15G or 15H?

It’s best to submit these forms at the beginning of the financial year (April) so that TDS is not deducted on any interest payments throughout the year. If submitted late, the bank or deductor may deduct TDS for the previous quarters, and only the remaining quarters can be saved from deductions.

Online Submission of Form 15G and Form 15H

Many banks offer online submission options through their net banking portals or mobile apps. This is a faster and more convenient method. Here’s how you can do it:

Log into your bank account online.
Navigate to the section for Tax Services or Forms.
Select and fill Form 15G or 15H.
Confirm the details and submit.
Save the confirmation message or download the acknowledgement receipt.

Income Tax Filing and TDS Refund

If you forget to submit Form 15G or 15H and the institution deducts TDS, the only way to get your money back is by filing an income tax return. Once your return is processed, the Income Tax Department will refund the excess TDS to your bank account.

Make sure you declare the correct income and TDS amounts. You can check Form 26AS on the income tax website to verify TDS details before filing your return.

Consequences of Wrong Declaration

Filing Form 15G or 15H when you're not eligible can attract legal penalties. Submitting a false declaration under Section 277 of the Income Tax Act may result in imprisonment ranging from three months to seven years and a fine. Always check your estimated income and tax liability before submitting these forms.

Responsibilities of TDS Deductors

Entities accepting Form 15G or Form 15H have certain responsibilities under the law:

Allot a Unique Identification Number (UIN) for every declaration received.
File quarterly statements of the forms received to the Income Tax Department.
Maintain these records for a minimum of seven years for audit or inspection.

Conclusion

Form 15G and Form 15H are valuable tools for managing your tax deductions on interest income. They ensure that individuals whose income is below the taxable limit are not burdened with unnecessary TDS and refund claims. To make the most of these forms, it’s important to understand the eligibility criteria, submit them on time every year, and fill in all the details accurately. Always keep copies of the submitted forms and acknowledgment receipts for future reference.

If you need any help in filing Form 15G and Form 15H then you can connect with Compliance Calendar’s experts through email info@ccoffice.in or Call/Whatsapp at +91 9988424211.

FAQs

Q1. Can I submit Form 15G or 15H if I am a Non-Resident Indian (NRI)?

Ans. No, only resident individuals are eligible to submit Form 15G or Form 15H. These forms are not applicable to Non-Resident Indians (NRIs), even if their income in India is below the taxable limit. NRIs are required to follow different tax deduction rules under the Income Tax Act.

Q2. What is the difference between Form 15G and Form 15H?

Ans. Form 15G is for resident individuals below the age of 60 years, HUFs, and trusts whose total income is below the basic exemption limit and have no tax liability. Form 15H is for senior citizens aged 60 years and above. Unlike Form 15G, Form 15H allows senior citizens to claim TDS exemption even if their interest income exceeds the exemption limit, provided the total tax liability is nil after deductions.

Q3. Is PAN mandatory for submitting Form 15G or Form 15H?

Ans. Yes, quoting a valid PAN (Permanent Account Number) is mandatory while submitting Form 15G or Form 15H. If PAN is not furnished, TDS will be deducted at a higher rate of 20% even if the forms are submitted.

Q4. Can I file Form 15G or Form 15H if my income includes FD interest in a joint account?

Ans. Yes, you can file Form 15G or Form 15H for interest earned through a joint account, but only if your name is the primary holder and the income is taxed in your hands. If you are the secondary holder, then the TDS obligation lies with the primary account holder.

Q5. Can I submit Form 15G/15H to multiple banks or branches?

Ans. Yes, you can submit Form 15G or Form 15H to multiple banks or branches where you hold fixed deposits or earn interest income. However, you must disclose the total estimated income from all sources in each form submission and ensure your cumulative income is within the exemption limit.

Q6. What happens if I forgot to submit Form 15G or Form 15H?

Ans. If you forgot to submit the form and TDS has already been deducted, you can claim a refund by filing your income tax return (ITR) at the end of the financial year. Also, you can still submit the form later in the financial year to avoid further TDS deductions for the remaining period.

Q7. Is submission of Form 15G or Form 15H a one-time requirement?

Ans. No, Form 15G and Form 15H are valid only for one financial year. You need to submit the form every year at the beginning of the financial year to continue enjoying exemption from TDS on eligible incomes.

Q8. Can I submit Form 15G or Form 15H offline and online both?

Ans. Yes, most banks accept both offline and online submissions of Form 15G and Form 15H. For online submission, you can use your bank’s internet banking or mobile app, while for offline submission, you must fill out a physical form and submit it at the branch.