written by Khatabook | July 2, 2021

Forms 15G & 15H to Save TDS on Interest Income

The Income Tax Act of 1962 requires banks to deduct 10% TDS on interest earned from deposits. The banks must deduct TDS when the taxpayer's interest income crosses the limit of Rs.10,000 per year. Further, all deposits held in various banks are clubbed when considering this limit. If the individual’s total income (as is the case with several senior citizens) is not taxable, then he/she can use Form 15G and Form 15 H and submit it to the bank. On submitting it, the bank does not deduct the TDS on the deposit’s interest amount. Thus the two forms help receive deposit interest without the deduction of taxes.

What is Form 15G?

The 15G form is your declaration to the bank that your deposit is claimed free of tax deductions. This 15G cannot be used by firms or companies and is limited to individual taxpayers with taxable income below the exemption limit. Essentially this declaration has certain eligibility conditions listed below.

  • A HUF- Hindu Undivided Family member can submit Form 15G if they are below 65.
  • The taxpayer should use such a 15G before the fixed deposit’s first interest payment becomes due.
  • The taxpayer must submit this form to every bank branch where the deductor can collect TDS deductions on fixed deposits.
  • Only taxpayers with nil tax liability on their total income can avail of this facility.
  • This form can only be used when the total liability from taxable interest is zero.
  • The taxpayer must be an Indian resident.
  • The total income from the interest head should be below the exemption limit set for the assessment year. The current exemption amount is Rs.2, 50,000.

What is Form 15H?

The 15 H form declaration falls U/S 197A (1C) of the Income Tax Act, 196. It is made by an individual taxpayer aged 65 or more to claim interest and receipts without tax deductions. To be eligible certain conditions are imposed by the IT laws, which are listed below:

  • 15H Form is only for senior citizens who have attained 65 years (This limit has since been reduced to read 60 years from 1st July 2012) at submission.
  • The previous year’s estimated tax should be null and the taxpayer’s income below the exemption limit for that year.
  • The taxpayer must submit this form to every bank branch where the tax deductor can collect TDS deductions on fixed deposits.
  • The taxpayer should use the 15H before the fixed deposit’s first interest payment becomes due. If not duly submitted, the bank may deduct TDS on the interest.
  • Form 15H is required if the interest from deposits exceeds Rs.10000 per year individually or cumulatively.
  • This form is also required where the interest income accrues from not just bank deposits but may include loan interest, bonds, debentures, advances etc. which exceed the limit of Rs.5,000 per annum. 

What are the uses of Form 15G/15H?

Form 15G/H is usually submitted to the tax-deductors like banks to prevent tax deduction on the interest amounts accrued annually. Since interest is considered as a head under the 'source of income', you can also use these forms in certain other circumstances given below.

  • EPF withdrawal without TDS deduction: An EPF amount of Rs 50,000 and above withdrawn before 5 years of continuous service attracts TDS deduction. To prevent such deductions, the taxpayer can use Form 15G for PF withdrawal or Form 15 H where applicable. However, their tax liability must be zero and fall below the exempt limits of taxable income. 
  • Corporate bonds without TDS deductions: A taxpayer individual gets exemption from TDS deductions on submitting 15G/H if the income generated from corporate bonds is lower than Rs.5000.
  • FDs at Post Offices without TDS deduction: Since the post offices permit digitized operations, you can submit Form 15G/ Form 15H if you meet the exemption criteria to save your interest income being hit by TDS deductions.
  • Rent deductions without TDS: The TDS deduction is also applicable on rental income, where such rental payments exceed a limit of Rs1.8 lakh per annum. However, if the taxpayer’s total income is below the exemption limit of the IT Act, a simple Form 15G/15H submission to the tax deducting authorities or tenants can stop the TDS deductions on rent.

Also Read: Time Limit To Deposit TDS And File TDS Return

How to fill Form 15G?

Form 15 G is easy to fill up. Just enter the following details.

  • Declarant/ Assessee Name: Fill in as per the name on your PAN card.
  • Status: Tick mark in the box if you are a HUF or individual.
  • Previous Year: Enter the appropriate FY for which the form is applicable.
  • Residential Status: Tick the appropriate box and remember it is only for resident Indians. 
  • Address: Fill in the details, PIN code, Aadhar-linked telephone number, email address etc.
  • Whether assessed to tax under the IT Act, 1961:  Answer yes if your income was tax liable in any of the preceding 6 years. If not, answer No. If you answered yes, then mention the latest assessment year for which your income was tax-liable.
  • Estimated income: Here (Col 16), you have to enter the total of all interest and other sources of income and show that the TDS should not be deducted. 
  • Estimated previous year total income: It mentioned in column 16 and is to be included. Here, you must account for total income from all sources and interest earned from all sources like salary, pensions, arrears, stipends, interest on bonds, rents accrued, etc., including the amounts mentioned in Col 16.
  • Details of previous years Form 15G filed if any: You must mention the total of Form 15Gs filed for the particular year. 
  • Aggregate income amount for which you filed 15 G: You must enter the total income amount for the year in which you filed the 15G
  • Income Details: Fill in income declared with the 15G declaration with account numbers, income nature, amount of income, and tax liability section. Enter LIC policies, NSCs, FDs, RDs etc., correctly.
  • Signature: Sign and mention the capacity as individual/ AOP/ HUF.

Do not submit Form 15G, 

  • If your income is clubbed with others like spouse/child/ AOP/ HUF etc. 
  • If a non-earning spouse/ child’s FD income is clubbed with yours.  

Note that 15G is not valid in the above cases where TDS may be deducted in another’s name and without a valid PAN number.

Points To Note When Filling Up And Using Form 15G and 15H

  • A taxpayer is required to submit to the tax-deductor- a valid PAN number with the Form 15G /15H. In the absence of the PAN number, TDS tax on interest is deductible @ 20%. Hence ensure you submit a cover letter, the 15G/H and a copy of your PAN card when making such a submission.
  • Always ensure you receive due acknowledgement of your submissions in Form 15G/15H. 
  • Retain your bank acknowledgement, PAN and 15G/H submissions for clarification and disputes.
  • Ensure that the 15G/H is submitted to all sources of income liable to TDS deductions, including a Form 15G for PF withdrawal as per the revised form.
  • Remember that since PAN submission is mandatory, the assessing officer can easily assess your tax liabilities and any inconsistent information reflected in them.
  • Providing incorrect information in these forms is a criminal offence. The Indian law has penal provisions for incorrect information in 15G/H, extending to 3 months imprisonment or more and with/without penalties.

Also Read: Challan 280 : How To Pay Your Income Tax Online With Challan 280

A quick comparison of Form 15G and Form 15H

Here’s a quick comparison chart for the two forms.

                       Form 15 G

Form 15 H

15G Form can be used by HUF/ resident taxpayer/ Trusts/ any assessee (excluding firms and companies) less than 60 years of age.

It can be used by senior citizens or individual resident taxpayers older than 60 years.

The tax liability calculated on the total income is zero.

The tax liability calculated on the total income is zero.

A resident Indian can only submit form 15G. 

A resident Indian can only submit form 15H.


Check if your income is exempt from TDS deductions by calculating the total tax payable. If exempt,  then use the Form 15G/H submission to your bank to stop the TDS deductions and save your money in income tax deductions. If you are in business or self-employed, you can try the KhataBook app to keep track of your income, provide accurate salary calculations based on their GPS biometric attendance register etc. All the best with your tax filing!


1. How are Form 15G and Form 15H different?

Though both Form 15G and Form 15 H are forms of self-declaration submitted to the tax-deductor or bank when you start an FD- fixed deposit, the Form 15G can also be used by trusts/ resident individuals and HUF Hindu Undivided Families below 60 years of age. Form 15H is basically for the resident Indian senior citizens or those 60 plus years and more.

2. Can an NRI senior citizen submit Form 15G or Form 15H?

No, Form 15G/15H is unavailable to NRIs since the exemption is limited to resident Indians.

3. Does filing the Form 15G/Form15H with banks mean my interest income is not liable to tax?

The 2 self-declaration forms imply that banks should not deduct TDS from your interest income since your tax liability on income from interest is ZERO. This also means that interest-earning income from FDs, RDs, corporate bonds etc., are all still taxable, and you have summed up the total income accruing to you, which falls below the exemption limit.

4. Should all my banks be given a Form 15G/ Form15H?

Yes. Individual deposits at every bank branch will require such forms to stop TDS deduction on your interest amount. TDS is deducted only if your interest income at the branch exceeds Rs 10,000/- till the year 2019. Since then, the deposits are covered by the new Rs 40,000/- limit in the Budget of 2019.

5. What happens if I have taxable income but have submitted 15G/H?

You should immediately withdraw the self-declaration forms of 15G/H with due intimation in writing to your bank, which will then start deducting the TDS due on interest. Please remember your self-declaration form states your taxable income is NIL. False information in the forms is a crime under the law that is penalized with penalties and/or 3 months imprisonment.

6. Is it mandatory to send Form 15H when withdrawing PF amounts?

No. The form is to be submitted to the tax-deductor and not to the income tax department. The other conditions to be met are the amount in the PF account should be Rs 50,000/- or more, and the amounts so withdrawn should be before 5 years of continuous service.

7. Is Form 15H to be submitted when investing in SCSS?

Investments in Senior Citizen’s Saving Schemes- SCSS generally have a 5-year tenure and are tax deduction eligible U/S 80C of the IT Act of 1962. When the total income generated from the interest in the SCSS and other investments is below Rs 40,000/- pa from 2019, one must provide the appropriate 15G/H forms to enable the banks to stop TDS deductions on the interest generated. 

8. What is meant by TDS?

TDS is Tax Deducted at Source. Any tax-deductor making a payment to an individual should deduct  TDS while paying the deductee. Such TDS amounts are remitted to the Central Government and hence form a direct tax.

9. If I am withdrawing less than Rs 50,000 from my PF account, do I need to submit Form 15G mandatorily? 

If you have five continuous years of service, you can withdraw money from your PF account, which is tax-free. However, when you do not have 5 continuous years of service and are trying to withdraw Rs 50,000 or more from the PF account, the withdrawal is TDS deductible. Submitting Form 15G/H will stop the TDS deduction on such withdrawals and is subject to all other conditions being met.

10. What is the Form 15G total estimated income?

The total estimated income in Form 15G is the total net income that is taxable. If this is below the IT exemption limits, then your tax liability is nil. The taxpayer can only submit 15 G if the total tax liability is zero. Just as a clarification note, the term Gross total income is income generated from all sources considered for deductions to arrive at the net total income as per the IT laws.

11. How can I stop my bank from deducting TDS on interest from my fixed deposits?

Please submit a Form 15G/H to your bank, requesting them to stop the TDS deductions since your taxable income is below the IT exemption limits and your tax liability is zero. The self-declaration forms should account for the total of all interest and income generated from all sources. You should file it with all branches where you have such deposits.

12. What is the normal TDS rate on interest accrued from an FD?

Under the IT Act of 1962, the TDS deducted on interest from an FD is 10% if a valid PAN is provided. If you do not provide PAN details, the TDS is applicable at 20%. FDs in Non-Resident Ordinary- NRO are TDS deductible at 30%. In the case of FDs held under Foreign Currency Non-Resident- FCNR and Non-Resident External- NRE accounts, TDS is not applicable as the deposits are tax-free.

13. When does the bank deduct TDS?

All financial institutions and banks must deduct TDS at 10% on the provision of a valid PAN when the total interest so generated is more than Rs 10,000/-per annum in the deductible FY. This has, however, been revised to Rs 40,000/- in the Budget of 2019. 

14. Are pensions received through the bank also TDS deductible?

Pensions are treated as a head under salaries and are income accruing to the individual. Hence TDS is deductible. Banks are allowed to deduct TDS under Chapter VI A, and pension arrears are subject to relief U/S 89(1) of the IT Act 1962.

15. Till when the 15G/H is submitted in FY 2019-20 valid?

The forms will be valid till 30th June 2020, i.e., the FY 2020-21 First Quarter.

16. What relief is provided in Budget 2019 towards TDS deductions?

Budget 2019 has 2 significant changes in it. The TDS limits on bank and post office savings accounts have been hiked from Rs 10,000 to 40,000. Also, the rent TDS deduction limits have been hiked from Rs 1.80 lakh to Rs 2.4 lakh.

17. Can I submit 15G/H forms digitally? 

Yes, you can submit them digitally on your bank’s web portal.

18. What happens if I forget to file Form 15G/H?

If you forget the submission of the forms, your TDS amounts get automatically deducted. Such amounts will reflect in your Form 26AS and can be claimed as a refund when you file your ITR. Submit the forms immediately to your bank.


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