When you earn interest from fixed deposits, recurring deposits, or other sources, the bank or financial institution is required by law to deduct Tax at Source (TDS) if your interest income exceeds a certain threshold. However, if your total annual income is below the taxable limit, you are not liable to pay any tax. In such cases, having TDS deducted can be a hassle, as you would then have to file a tax return to claim a refund. To solve this problem for small taxpayers, the Income Tax Act provides a simple solution. This is where you need to understand what is Form 15G and Form 15H for TDS exemption. These are self-declaration forms that you can submit to your bank to request them not to deduct any TDS on your interest income.
What is Form 15G and Form 15H? A Simple Definition
Form 15G and Form 15H are self-declaration forms that an individual can submit to their bank or financial institution, stating that their total income for the financial year is below the basic exemption limit and that, therefore, no tax should be deducted at source (TDS) from their interest income. While both forms serve the same purpose, they are meant for different categories of people based on age.
- Form 15G: This form is for resident individuals who are below the age of 60 years and for Hindu Undivided Families (HUFs).
- Form 15H: This form is specifically for resident senior citizens, i.e., individuals who are 60 years of age or older.
Eligibility Criteria: Who Can Submit Form 15G and 15H?
Submitting these forms is not an option for everyone. You must meet certain conditions to be eligible. The criteria for the financial year 2025-26 are as follows:
Eligibility for Form 15G
An individual below 60 years of age can submit Form 15G only if both of the following conditions are met:
- The final tax calculated on your total estimated income for the financial year is nil.
- The total interest income from all sources for the year does not exceed the basic exemption limit for that year (e.g., ₹2.5 lakh, as per the old tax regime).
Eligibility for Form 15H
A senior citizen (60 years or older) can submit Form 15H if the following condition is met:
- The final tax calculated on your total estimated income for the financial year is nil.
Note that for a senior citizen, their total interest income can be higher than the basic exemption limit, but as long as their final tax liability is zero (after claiming deductions like the one under Section 80TTB), they can submit Form 15H.
How to Submit Form 15G and 15H
Submitting these forms has become very convenient. You can do it through various channels:
- Online Submission: Most banks allow you to submit Form 15G/15H directly through their internet banking or mobile banking portal. This is the easiest and quickest method.
- Offline Submission: You can download the form, fill it out, and submit a physical copy at your bank branch.
It is crucial to submit these forms at the beginning of each financial year, preferably in April, to ensure that TDS is not deducted for the entire year. You should submit a separate form for each bank or institution where you have deposits.
Key Differences Between Form 15G and Form 15H
| Feature | Form 15G | Form 15H |
|---|---|---|
| Applicability | For resident individuals below 60 years & HUFs. | For resident senior citizens (60 years and above). |
| Condition on Interest Income | Total interest income for the year must not exceed the basic exemption limit. | No such condition. Interest income can exceed the exemption limit. |
| Main Eligibility Condition | Tax on total income must be nil. | Tax on total income must be nil. |
Important Points to Remember for 2026
- Submit at the Start of the Year: Always submit the forms in the first week of April. If you submit them mid-year, the bank might have already deducted TDS for the previous quarters.
- Provide Accurate Information: It is a legal declaration. Providing false information in Form 15G/15H can lead to penalties and even prosecution under the Income Tax Act.
- PAN is Mandatory: You must have a valid Permanent Account Number (PAN) to submit these forms. If you don’t provide a PAN, the bank will deduct TDS at a higher rate.
- Validity: These forms are valid for only one financial year. You need to submit them afresh every year.
By using Form 15G or 15H correctly, you can manage your finances more efficiently and avoid the unnecessary blocking of your funds with the tax department, especially if your income is not taxable. This is particularly beneficial when you are trying to maximize deductions on your savings, such as the one available under Section 80TTA.
Frequently Asked Questions (FAQs)
1. What happens if I forget to submit Form 15G/15H on time?
If you forget to submit the form at the beginning of the year, the bank will start deducting TDS as soon as your interest income crosses the threshold. You can submit the form later in the year to prevent further TDS deductions, but you cannot get a refund of the tax already deducted from the bank. For that, you will have to file an income tax return and claim the refund.
2. Can I submit Form 15G if I have opted for the new tax regime?
Yes, you can. The eligibility for Form 15G/15H depends on whether your final tax liability is nil, regardless of which tax regime you choose. If your income is below the basic exemption limit under the new tax regime (currently ₹3 lakh) and your tax liability is zero, you can submit the form.
3. Can an NRI submit Form 15G or 15H?
No, these forms can only be submitted by resident Indians. NRIs are not eligible to use Form 15G or 15H to avoid TDS on their interest income earned in India.
4. Do I need to submit these forms for my savings account interest?
TDS is generally not deducted on interest earned in a regular savings bank account. The TDS rules primarily apply to interest from fixed deposits and recurring deposits. Therefore, you usually don’t need to submit Form 15G/15H for your savings account.
5. Where can I get Form 15G and Form 15H?
You can easily download these forms from your bank’s website or from the website of the Income Tax Department of India. Most banks also provide the physical forms at their branches.