If your total income is below the taxable limit but your bank keeps deducting TDS on FD interest, you're leaving your own money with the government interest-free until refund. Forms 15G and 15H let you stop this at the source - if you qualify.
Why Forms 15G and 15H Exist
Banks and other deductors are required under Section 194A to deduct TDS on interest income above certain thresholds, regardless of whether you actually owe any tax. If your total income for the year is below the taxable limit, this TDS becomes a refund you must claim after filing your ITR - locking up your money for months. Forms 15G and 15H are self-declarations that tell the deductor: "my income doesn't attract tax, please don't deduct TDS."
Form 15G: Who Can Use It
Form 15G can be submitted by:
- Resident individuals below 60 years of age
- Hindu Undivided Families (HUFs)
- Trusts and other assessees (excluding companies and firms)
Conditions for eligibility:
- Tax computed on your total income for the financial year must be nil (i.e., total income is below the basic exemption limit after eligible deductions).
- The total interest income for the year must not exceed the basic exemption limit (₹2.5 lakh under the old regime, or the relevant new regime threshold).
Form 15H: Who Can Use It
Form 15H is specifically for resident individuals aged 60 years or above (senior citizens) during the financial year. The key difference from Form 15G is important:
Form 15H is more lenient. For Form 15H, the only condition is that the tax payable on the total income for the year should be NIL - there is no separate condition on the interest income amount itself. This means even senior citizens with interest income above the basic exemption limit can submit Form 15H, as long as rebates (like Section 87A) and deductions bring their final tax liability to zero.
Where and When to Submit
| Step | Details |
|---|
| When | At the start of each financial year (April), or before the first interest credit/payment for that year |
| Where | Each bank branch / deductor separately - submitting to one bank does not cover deposits at another bank |
| How | Most banks allow submission via net banking / mobile app; physical submission also accepted at branches |
| Validity | One financial year only - must be submitted afresh every year |
Information Required on the Form
- PAN (mandatory - without a valid PAN, the declaration is invalid and TDS will be deducted at 20%)
- Estimated total income for the financial year
- Estimated total income including all interest income that will be received during the year
- Details of other Form 15G/15H declarations filed during the year (if any, with other deductors) - including the aggregate amount of income for which such declarations have been filed
Practical tipIf you have FDs across multiple banks, submit Form 15G/15H separately at each bank, and ensure the total estimated income mentioned across all forms is consistent - banks report these declarations to the Income Tax Department, and inconsistencies can trigger queries.
Consequences of a False Declaration
Submitting Form 15G or 15H when you are not actually eligible (i.e., when tax is in fact payable on your income) is a serious matter. Under Section 277 of the Income Tax Act, making a false statement in any verification can attract:
- Prosecution with imprisonment ranging from 3 months to 2 years (or up to 7 years if tax sought to be evaded exceeds ₹25 lakh), along with a fine
- Penalty proceedings for under-reporting of income
Always estimate your income conservatively. If your income situation changes during the year (e.g., a salary increase, additional income sources) after you've submitted Form 15G/15H, you cannot withdraw the declaration, but you must still correctly report all income and pay any tax due when filing your ITR.
What If TDS Was Already Deducted Before You Submitted the Form?
Form 15G/15H only prevents future TDS deductions from the date of submission - it cannot retroactively reverse TDS already deducted earlier in the year. To recover that TDS, you must file your ITR and claim it as a refund, since your total tax liability is nil.
Frequently Asked Questions
I am 58 years old with FD interest of Rs 60,000. Can I submit Form 15G? ▼
Form 15G requires that your total interest income for the year not exceed the basic exemption limit, and that tax on your total income be nil. If your total income (including the Rs 60,000 interest) keeps you below the basic exemption limit after deductions, you can submit Form 15G. Once you turn 60, you would instead use Form 15H from the following financial year.
Do I need to submit Form 15G/15H every year, or is it a one-time declaration? ▼
It must be submitted every financial year, before the first interest payment/credit of that year (typically by early April). A declaration submitted for one year does not carry over to the next.
What happens if TDS is deducted despite submitting Form 15G/15H? ▼
This can happen due to processing delays or if the form was submitted after the first interest credit for the year. You cannot get it reversed by the bank retroactively, but you can claim the TDS amount as a refund when filing your Income Tax Return, since the TDS will appear as a tax credit in your Form 26AS.