Tax Deducted at Source (TDS) is a system designed by the Indian government to collect tax at the source of income. Banks and financial institutions, in compliance with the Income Tax Act, 1961, are mandated to deduct TDS on interest income that exceeds the prescribed limits in a financial year. For many individuals, especially those with low or nil taxable income, this often results in unnecessary deduction of tax and the additional burden of claiming refunds.
To prevent this situation, the Income Tax Act allows eligible individuals to submit Form 15G or Form 15H to the income payer (usually banks, NBFCs, or post offices), requesting them not to deduct TDS if their income is below the taxable limit.
This blog explores everything you need to know about these two forms, their purpose, eligibility, filing procedure, legal implications, and practical tips.
What are Form 15G and Form 15H?
Form 15G and 15H are two self-declaration forms to enable eligible individuals to avoid the deduction of TDS on certain incomes, primarily interest income from fixed deposits, recurring deposits, and other similar investments.
- Form 15G is governed by Sections 197A(1) and 197A(1A) of the Income-tax Act, and Rule 29C of the Income-tax Rules.
- Form 15H is governed by Section 197A(1C) and Rule 29C
- Form 15G is meant for individuals below 60 years of age, Hindu Undivided Families (HUFs), and certain trusts.
- Form 15H is exclusively for senior citizens, i.e., individuals who are 60 years or older during the financial year.
By filing these forms, individuals declare that their total taxable income is below the basic exemption limit and they are not liable to pay any income tax, and hence, TDS should not be deducted.
TDS deduction thresholds (FY 2025-26)
TDS on interest is deducted under Section 194A of the Income Tax Act. The current thresholds are:
- ₹40,000 for interest earned in a year from a bank (₹50,000 for senior citizens)
- ₹5,000 for interest from company deposits or debentures
- No threshold for interest from unsecured loans or interest payable to NRIs (covered under different provisions)
If interest exceeds these limits in a financial year, banks are required to deduct TDS at 10%, provided PAN is submitted. If PAN is not submitted, TDS may be deducted at 20%.
Who can submit Form 15G?
To submit Form 15G, the following conditions must be fulfilled:
- You are a resident individual, HUF, or trust.
- Your age is below 60 years.
- Your total income for the financial year is less than the basic exemption limit (currently ₹2.5 lakh under the old regime or ₹3 lakh under the new tax regime for individuals under 60).
- Your tax liability is zero, meaning you do not owe any tax for the year.
- You have a valid PAN.
Form 15G cannot be submitted by companies, partnership firms, or NRIs.
Who can submit the Form 15H?
Form 15H is meant for resident individuals who are 60 years or older. The conditions are:
- You are an individual resident in India, and aged 60 years or more during the financial year.
- Your estimated total income is not taxable (i.e., tax liability is zero).
- You have a valid PAN.
- There is no restriction on interest income amount – even if it is more than ₹50,000, you may submit Form 15H if your total income after deductions is not taxable.
Where and when should these forms be submitted?
These forms are filed every year, and you must submit Form 15G/15H to each deductor at the beginning of the financial year to avoid TDS on interest credited during the year.
Places where these forms are accepted:
- Banks for FDs, RDs, savings interest
- Post offices for schemes like MIS, SCSS
- Corporate bond issuers
- Mutual fund houses (in rare dividend situations)
- EPFO for premature EPF withdrawals above ₹50,000
- Insurance companies for maturity proceeds exceeding the exemption limits
Details Required in Form 15G/15H
For the Form 15G:
- Personal Information
- Name of the declarant
- Permanent Account Number (PAN) – mandatory
- Status (e.g. Individual, HUF, Trust)
- Contact Details
- Full address (including street, city, PIN code)
- Email address
- Telephone/mobile number
- Financial Year Information
- Previous financial year for which the declaration is being submitted
- Date of birth (to confirm age is below 60)
- Tax Filing History
- Whether assessed to income tax in any of the previous years
- If yes, provide the latest assessment year
- Income Details
- Estimated total income for the financial year, including interest
- Details of the income for which Form 15G is submitted:
-
- Nature of income (e.g., interest on fixed deposit, recurring deposit, etc.)
- Identification number of relevant investment (FD account number, policy number, etc.)
- Section under which income is exempt (if applicable)
- Estimated income amount
- Declaration and Verification
- Declaration that:
-
- Total income is below the basic exemption limit
- No tax is payable on the estimated income
- Income is not includible in another person’s hands under Sections 60 to 64 of the Income Tax Act, 1961
- Signature of the declarant
- Date and place of signing
Form 15H
Includes all the information from Form 15G, along with:
1. Declaration of Tax Liability, which confirms no tax liability exists, even after claiming applicable deductions (e.g., under Section 80TTB)
2. Number of Forms Filed
- Number of Form 15H declarations submitted during the financial year
- Aggregate income covered by all such declarations
3. The deductor (e.g., bank) also needs to fill Part II, acknowledging receipt and verification.
How to Submit Form 15G and 15H?
You can submit these forms in an offline or online manner:
Offline Submission:
- Download the form from the Income Tax website or obtain it from your bank
- Fill, sign, and submit the form to the bank branch
- Collect the acknowledgement for your records
Online Submission:
- Log in to your net banking account (if the bank offers the facility)
- Go to the ‘TDS’ or ‘Form 15G/15H’ section
- Fill in the required details and submit digitally
- A confirmation reference will be generated
Legal Implications of Submitting a False Declaration
Submitting Form 15G or 15H when you are not eligible is a serious offence. Under Section 277 of the Income Tax Act:
- If the tax evaded exceeds ₹25 lakh, imprisonment may extend to 7 years with a fine
- For other cases, imprisonment may range from 3 months to 2 years, along with a fine
Therefore, only eligible taxpayers with nil tax liability should use these forms.
Differences Between Form 15G and Form 15H
| Form 15G | Form 15H | |
| Applicable To | Individuals below 60, HUFs, and Trusts | Senior citizens (60+ years) |
| Age Criteria | Below 60 years | 60 years and above |
| Tax Liability | Nil | Nil |
| Total Income Limit | Must be below exemption limit | Can be above exemption, but no tax payable |
| PAN Requirement | Mandatory | Mandatory |
| Validity | One financial year | One financial year |
Conclusion
Forms 15G and 15H are simple yet powerful tools under the Income Tax Act, 1961, designed to provide relief from unnecessary TDS to individuals with non-taxable incomes. Timely and accurate filing of these forms helps in preventing TDS deductions and eliminates the hassle of claiming refunds later. Always remember that
- Form 15G is for individuals below 60 with income below the exemption limit.
- Form 15H is for senior citizens with zero tax liability.
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