Form 15G and Form 15H: How to File to Avoid TDS on Interest Income

Form 15G and Form 15H: How to File to Avoid TDS on Interest Income

Every year, thousands of honest taxpayers watch their bank deduct TDS on fixed deposit interest even though their total income does not attract any tax at all. It happens quietly, a few thousand rupees here and there, and then you spend months chasing a refund after filing your return. This is entirely avoidable.

If your total income is below the taxable limit, or if you are a senior citizen who qualifies under the special provisions, you can simply tell your bank or post office in advance not to deduct TDS. That is exactly what Form 15G and Form 15H are for. This guide covers what these forms mean, who can use them, what you need on hand, and the exact steps to file.

What is Form 15G and Form 15H?

Form 15G and Form 15H are self-declaration forms under the Income Tax Act that you submit to a bank, post office, company, or any other entity paying you interest or similar income, stating that your total income for the financial year is not going to be taxable. Based on this declaration, the payer does not deduct tax at source (TDS) on the interest being paid to you.

In simple words, these forms let you say "my income is below the taxable limit, so please do not cut TDS on the interest you pay me." Without this declaration, banks and other deductors are legally required to deduct TDS once your interest income crosses a specified threshold in a financial year, regardless of whether you actually owe any tax.

The two forms serve the same basic purpose but target different taxpayers:

• Form 15G is for resident individuals below 60 years of age, and also for Hindu Undivided Families (HUFs) and trusts, whose estimated total income for the financial year is below the basic exemption limit and whose final tax liability works out to nil.
• Form 15H is specifically for resident senior citizens, meaning individuals who are 60 years of age or above during the financial year. It has a slightly more relaxed condition since it only requires that tax payable on total income be nil, without the same strict "income below exemption limit" requirement as Form 15G, because senior citizens usually get a higher exemption threshold and additional rebates.

These forms are commonly used for interest on fixed deposits, recurring deposits, savings accounts in some cases, post office deposits, corporate or company deposits and debentures, and for TDS on EPF withdrawal in certain situations. The underlying idea stays the same: if you genuinely have no taxable income, you should not have to wait for a refund after unnecessary TDS has already been deducted.

Who Must File and When

Not everyone can use Form 15G or Form 15H. These forms come with clear eligibility conditions, and filing without meeting them can create problems later.

Eligibility for Form 15G:

• Resident individual (not an NRI), HUF, or trust.
• Below 60 years of age during the financial year.
• Estimated total income for the year, after eligible deductions, below the basic exemption limit.
• Final tax payable on total income must work out to nil.
• As of 2026, please confirm the current basic exemption limit and interest thresholds with a tax professional or the official income-tax portal, since these are revised periodically and may vary by tax regime.

Eligibility for Form 15H:

• Resident individual aged 60 years or above during the financial year.
• Tax payable on total estimated income must be nil. Form 15H does not require income strictly below a fixed exemption limit the way Form 15G does, since senior citizen rebates can bring liability to nil at somewhat higher income levels.
• Always confirm the current age threshold, exemption limits, and rebate provisions with a tax professional, since these change from time to time.

When and where to file:

• Submit Form 15G or 15H at the start of the financial year, or as soon as you open a new deposit, and definitely before the first interest credit. Once interest is credited and TDS deducted, filing afterward will not reverse it.
• The declaration is not automatically valid across all your accounts. Submit a separate form to each bank branch, post office, or deductor wherever you expect interest income.
• The declaration is valid only for one financial year and must be refiled every year, even if nothing has changed in your income situation.
• If you open a new deposit mid-year, file the form at that time so TDS is not deducted from the first interest credit itself.

Documents and Information Required

Filing Form 15G or 15H is a low-paperwork process, but keep these details ready before you begin:

• PAN: Mandatory. Without a valid PAN, the form is invalid and TDS may be deducted, sometimes at a higher rate.
• Estimated total income for the year: Covering salary or pension, interest from all banks and post offices, rental income, and other taxable income.
• Details of the specific income being declared: The interest amount expected from that particular branch or deductor.
• Previous year's total income, for reference in some processes.
• Details of other Form 15G/15H filed during the year: Disclose how many similar declarations you have already filed elsewhere and the aggregate income covered.
• Bank account and branch details: Account number, branch name, and deposit or investment reference numbers.
• Residential status confirmation, since only residents, HUFs, and trusts qualify.
• Aadhaar-linked details or e-filing portal login credentials, if filing through the e-filing portal.
• Signature or e-verification method: physical signature, or Aadhaar OTP, net banking, or digital signature for online submissions.

Step-by-Step Process to File Form 15G/15H

There are two broad routes: filing directly with the bank or deductor, and filing through the income-tax e-filing portal where supported.

Route 1: Filing directly with the bank, post office, or deductor (most common)

1. Get the correct form, 15G if below 60, 15H if 60 or above, from your bank's branch, website, or the income-tax department's form repository.
2. Fill in personal details: name as per PAN, PAN number, date of birth, residential status, and contact details.
3. Enter your estimated total income for the year and confirm the tax on it works out to nil.
4. Mention the specific interest amount being declared, along with the relevant account or deposit numbers.
5. Declare any other Form 15G/15H already filed during the same financial year, with aggregate income covered.
6. Sign the physical form, or complete it via the bank's internet banking or app if offered, using OTP or net banking verification.
7. Submit before the first interest credit for the year and keep an acknowledgment or reference number.
8. Repeat separately for every bank branch, post office, or company deposit where you expect interest income.

Route 2: Filing through the income-tax e-filing portal

Some deductors, particularly larger banks, are integrated with the department's e-filing system, allowing online submission as an alternative route.

1. Log in to the official income-tax e-filing portal using your PAN-based credentials.
2. Go to e-File, then Income Tax Forms, then File Income Tax Forms (exact menu labels may change as the portal is updated, so confirm the current path on the portal or with a professional).
3. Select Form 15G or 15H, choose the relevant financial year and deductor, and fill in the same details required offline.
4. Verify and submit using Aadhaar OTP, net banking, or another available method.
5. Download the acknowledgment as proof, and share a copy with your bank if it does not automatically pull the filing from the portal.
6. Confirm with your bank whether it recognizes portal-based filings, since this integration is not universal across deductors.

Rates, Thresholds, and Consequences (2026 Snapshot, Please Verify)

TDS rules on interest are revised periodically, so treat the figures below as general guidance and confirm current numbers with a tax professional or the official income-tax portal.

• TDS without a valid declaration: If you do not file and your interest crosses the applicable threshold under Section 194A, the deductor must deduct TDS, typically around 10 percent, though this can vary. Confirm the current rate before relying on it.
• Threshold limits for TDS applicability: Specified annual interest limits exist below which TDS need not be deducted at all, often higher for senior citizens. As of 2026, confirm current threshold limits with a professional or the official portal since they are revised periodically.
• Consequence of a false declaration: Filing when you are not actually eligible, say your income exceeds the exemption limit or your liability is not genuinely nil, is treated as a false statement. This is not limited to recovering the TDS that should have been deducted. The Income Tax Act contains provisions, including under Section 277 (hedged, please verify scope with a professional), that can attract penalty and, in serious cases, prosecution. File only if you genuinely qualify.
• Consequence of not filing when eligible: If you forget to file, TDS gets deducted once interest crosses the threshold. You can usually claim it back as a refund when filing your income tax return, but your money stays locked up longer, and you must go through the return and refund process to recover it.

Because these figures change over time, always verify the latest ones before submitting your declaration, and consult a professional if unsure whether you qualify.

Common Mistakes to Avoid

• Filing when your total income exceeds the exemption limit. Recalculate every year rather than filing out of habit.
• Senior citizens using Form 15G instead of Form 15H. Use the form meant for your age group to avoid rejection.
• Forgetting to file at every bank branch or deductor. A declaration at one branch does not cover deposits elsewhere.
• Not refiling each new financial year. The declaration lapses every March and must be filed afresh from April.
• Submitting the form after interest is already credited. This cannot be reversed; you must claim it via your return instead.
• Quoting an incorrect or mismatched PAN. A mismatch can invalidate the form and attract TDS at a higher rate.
• Not accounting for income from all sources while estimating total income. Add up interest from every deposit and account, not just the one at hand.
• Ignoring the requirement to disclose other Form 15G/15H filings for the year, which can create discrepancies later.
• Assuming filing replaces your income tax return obligation. It only stops TDS at source; it does not replace your duty to file a return.

Frequently Asked Questions

What is the difference between Form 15G and Form 15H?

Form 15G is for resident individuals below 60, plus HUFs and trusts, whose estimated income is below the exemption limit with nil tax liability. Form 15H is for resident senior citizens aged 60 or above, generally requiring only that tax on total income be nil. Age decides which form applies to you.

Can NRIs file Form 15G or Form 15H?

No. Both forms are meant only for resident individuals, HUFs, and trusts. NRIs have a different set of TDS rules for their interest income, so it is best to consult a tax professional for the process applicable to them.

What happens if TDS has already been deducted before I filed the form?

Filing afterward will not reverse deduction on interest already paid. The only way to recover it is by filing your income tax return for that year and claiming the TDS as a refund, provided your actual liability is nil or lower than the tax already deducted.

Is Form 15G or Form 15H itself a declaration of taxable income?

No. These forms are not a substitute for your income tax return and do not assess your taxable income. They simply tell the deductor your estimated total income is not taxable, so TDS should not apply. You still need to file your return separately if you meet the applicable criteria.

What is the penalty for filing a false declaration?

Filing when you do not actually meet the eligibility conditions is treated as a false statement, which can attract consequences beyond recovering the TDS due, potentially including penalty and prosecution provisions referenced under Section 277 of the Income Tax Act (please confirm exact scope with a professional). File only if genuinely eligible.

Can I file Form 15G or Form 15H for multiple banks?

Yes, and you must. If you hold deposits across multiple banks or branches, submit a separate form at each one. There is no single filing that automatically covers all accounts, though each form requires you to disclose other declarations filed during the year.

What happens if I forget to file the form on time?

TDS will be deducted once your interest crosses the applicable threshold. This is usually not a permanent loss since you can claim a refund by filing your income tax return, but you will need to wait through the refund process rather than getting the benefit immediately.

Is filing Form 15G or Form 15H mandatory?

It is not a legal obligation for everyone; it is a facility for those who qualify. If you skip it despite being eligible, TDS gets deducted as usual and you claim it back through your return later. While not mandatory, it is highly advisable for eligible taxpayers since it saves the wait for a refund.

Figuring out whether you qualify for Form 15G or Form 15H, and filing it correctly at every bank or deductor, can be confusing when your income sources span multiple accounts. Legal Suvidha offers a free consultation to help you determine eligibility accurately and handle the filing correctly, so you avoid both unnecessary TDS and an incorrect declaration.

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