Form 15G and Form 15H

Form 15G and Form 15H are two of the most under-used compliance tools available to Indian taxpayers. Submitted correctly, they can prevent banks and other deductors from cutting TDS on interest income for taxpayers whose total income is below the taxable threshold. With the new tax regime as the default for FY 2026-27 and higher basic exemption, more taxpayers than ever can benefit — provided the forms are filed accurately and on time.

What Are Form 15G and Form 15H

Both forms are self-declarations submitted to a deductor — typically a bank — stating that the recipient's total income for the financial year is below the basic exemption limit and hence no TDS should be deducted on specified income such as interest on fixed deposits, recurring deposits, EPF withdrawals and certain other payments.

• Form 15G — for resident individuals (other than senior citizens) and HUFs below 60 years of age
• Form 15H — for resident senior citizens aged 60 years and above

Eligibility Conditions

The conditions for submitting these forms are precise and easy to get wrong. Submitting them without meeting eligibility can amount to a false declaration with penal consequences under the Income Tax Act.

• Form 15G — taxable income for the financial year must be below the basic exemption limit (₹3 lakh under the new regime) AND total interest income from the deductor must not exceed that exemption limit
• Form 15H — applicant must be a resident senior citizen aged 60+ AND estimated tax payable on total income for the year must be Nil
• Both forms can be filed only by residents and not by Non-Resident Indians
• PAN is mandatory; without PAN, TDS is deducted at the higher rate under Section 206AA

Common Incomes Where These Forms Apply

• Interest on fixed deposits and recurring deposits with banks and post offices
• Interest income from corporate deposits and bonds (subject to product-specific rules)
• EPF withdrawal before 5 years of service (Form 15G with conditions)
• Income from rent in specified cases (Form 15G/H subject to rules)

How to Submit Form 15G / 15H in 2026

1. Estimate total income for the financial year including the relevant interest
2. Confirm that conditions for Form 15G or Form 15H are met
3. Log into your bank's net banking or branch and submit the form online or in physical form
4. Submit a separate declaration at every deductor where the income is received
5. Refresh the declaration at the start of every financial year, since validity is for one year

Consequences of Wrong or False Declaration

If a taxpayer submits Form 15G or 15H without meeting the conditions, two things happen. First, the deductor may still deduct TDS at the higher rate when CBDT systems flag inconsistencies. Second, the taxpayer can face a penalty and even prosecution under Section 277 for furnishing a false declaration, especially where it is used to evade tax. Always estimate income realistically — including all interest, capital gains, business and salary income — before signing the form.

Best Practices

• File the forms early in April for the coming financial year wherever applicable
• Maintain a copy of every declaration along with acknowledgement
• Reconcile Form 26AS, AIS and TIS each year to confirm that TDS was not erroneously deducted
• If TDS has already been deducted, claim refund through the ITR
• Re-evaluate eligibility every year — income may cross the threshold due to FD ladders or new deposits

Coordinating Form 15G/15H With Overall Tax Planning

Form 15G and Form 15H decisions cannot be taken in isolation. They depend on your projected total income for the year, choice of tax regime, FD ladders, capital gains plans and any one-time receipts such as bonuses or property sales.

Senior citizens, in particular, should evaluate Form 15H in conjunction with Section 80TTB deduction, the higher basic exemption available under the old regime, and any pension or annuity income. A 20-minute conversation with a tax advisor at the start of the year can prevent both unnecessary TDS and unintended false declarations.

Banks, EPF Withdrawals and Form 15G

Form 15G is particularly useful for early EPF withdrawals where the service period is less than 5 years and the amount exceeds the threshold for TDS under Section 192A. Submitting Form 15G correctly — when total income is below the basic exemption limit — can avoid TDS on the withdrawal.

Similarly, for bank fixed deposits and recurring deposits, submitting Form 15G or Form 15H early in April ensures that the first quarter's interest credit is not subjected to TDS. Make these declarations part of your annual personal-finance checklist along with insurance and SIP reviews.

Conclusion

Form 15G and Form 15H are simple but powerful: they can stop avoidable TDS at source and keep your cash flow intact. Used correctly, they reduce paperwork and refund waits; used carelessly, they can attract penalties and even prosecution. In 2026, with higher exemption limits under the new regime and tight digital data flows, make these forms a routine part of your annual tax housekeeping — but file them only when you genuinely qualify.