When and Why to fill Form 15G and 15H?

When you keep money in Fixed Deposits (FDs) or Recurring Deposits (RDs) in the bank, the bank pays you interest. But here’s the catch — if the interest you earn crosses a certain limit, the bank automatically deducts TDS (Tax Deducted at Source) before giving you the money.

Now imagine your total annual income is below the taxable limit. Why should you lose money unnecessarily to TDS when you don’t have to pay tax at all? That’s where Form 15G and Form 15H come to your rescue.

These are self-declaration forms where you declare to the bank that your income is below the taxable slab. By submitting these forms, you can stop banks (or other financial institutions) from deducting TDS on your interest.

In this article, we’ll explain what Form 15G and 15H are, who can submit them, how to fill them, and important precautions — all in easy language.

What is Form 15G?

Form 15G is for individuals who are below 60 years of age.

It is a declaration form you give to the bank to ensure no TDS is deducted on your deposit interest.
You can use it if your total income is below the basic exemption limit.
As per income tax rules:
- Old Regime exemption limit → ₹2.5 lakhs per year.
- New Regime exemption limit → ₹3.0 lakhs per year.

For example, if you earn ₹1.5 lakh in total, and the bank deducts TDS because your FD interest crossed ₹40,000, you can avoid this deduction by filing Form 15G.

What is Form 15H?

Form 15H is very similar to Form 15G, but it is specially meant for senior citizens (aged 60 years or above).

If you are a resident senior citizen, you can file Form 15H.
The exemption limit is the same:
- ₹2.5 lakhs (Old Regime)
- ₹3.0 lakhs (New Regime)
Senior citizens also enjoy a higher TDS exemption on bank interest (up to ₹50,000 in a year).

Difference Between Form 15G and Form 15H

Point	Form 15G	Form 15H
Age Group	For individuals below 60 years	For senior citizens (60+ years)
Income Limit	Below exemption slab (₹2.5 lakh old / ₹3 lakh new)	Same exemption slabs apply
TDS Exemption	Interest up to ₹40,000	Interest up to ₹50,000

Why Are These Forms Important?

Banks are required by law to deduct TDS if:

Interest on deposits exceeds ₹40,000 in a year (for non-senior citizens).
Interest exceeds ₹50,000 in a year (for senior citizens).

But if your income is below the taxable limit, why should your money get locked in TDS? Submitting these forms ensures that you get the full interest amount without unnecessary deductions.

Can Form 15G and 15H Be Used for EPF Withdrawals?

Yes! Apart from banks, these forms are also used in EPF (Employees’ Provident Fund) withdrawals.

If you withdraw your PF before completing 5 years of service, and the amount is more than ₹50,000, TDS applies.
But if your income is below taxable limits, you can submit Form 15G (for <60 years) or Form 15H (for 60+ years) to avoid TDS.

Rules for EPF TDS Deduction:

10% TDS → If PAN is submitted but Form 15G/15H is not.
34.608% TDS → If PAN is not submitted and Form 15G/15H is also missing.

So, submitting these forms saves you a lot of money.

How to Submit Form 15G and Form 15H

You can submit these forms in two ways:

1. Offline (at Bank Branch)

Visit your bank branch.
Ask for Form 15G or 15H.
Fill in details like PAN, income, and declaration.
Submit it along with your PAN copy.

2. Online (via Net Banking)

Many banks now allow online submission:

Log in to your bank’s net banking portal.
Look for the ‘Submit Form 15G/15H’ option under deposits or tax services.
Fill in the details and submit digitally.

This is faster, safer, and you get instant acknowledgement.

Key Points to Remember

PAN is Mandatory
You cannot submit Form 15G or 15H without a valid PAN card.
Valid for One Financial Year Only
These forms are valid only for the current financial year. You must submit them every year if you are eligible.
No Tax Liability Should Exist
You should file these forms only if your total income is below the exemption limit. If you file them despite having taxable income, it is considered wrong and may attract penalties.
Submit at the Beginning of the Year
It’s best to submit in April at the start of the financial year to avoid any TDS deductions.

Common Misconceptions

“Form 15G/15H means I don’t have to pay tax.”
Wrong. If your income later crosses the taxable limit, you still have to file ITR and pay tax. These forms only prevent premature TDS deductions.
“Banks automatically apply these forms once submitted.”
No. You need to resubmit every year.
“Interest on FD is calculated at maturity only.”
Not true. Interest is calculated periodically (quarterly/monthly), and TDS is also deducted accordingly.

Example for Better Understanding

Let’s say Ravi (age 35) has an FD in the bank.

His FD interest = ₹45,000 in a year.
His salary income = ₹1.5 lakh.
Total income = ₹1.95 lakh (below ₹2.5 lakh slab).

Now, normally the bank will deduct TDS since interest is above ₹40,000. But Ravi’s income is below taxable limits. By filing Form 15G, he ensures the bank doesn’t deduct TDS, and he gets his full ₹45,000 interest.

Similarly, Sita (age 65) has an FD earning ₹55,000 interest.

Total income = ₹2 lakh.
Since she’s a senior citizen, her TDS exemption limit is ₹50,000. Without Form 15H, the bank will deduct TDS on ₹5,000.
By submitting Form 15H, she can avoid this deduction.

Final Words

Forms 15G and 15H are simple but powerful tools to make sure your money doesn’t get unnecessarily deducted as TDS when your income is below the taxable limit.

Form 15G → For individuals below 60 years.
Form 15H → For senior citizens above 60 years.

Always remember to:

Submit these forms every financial year.
Use them only if your income is genuinely below the taxable limit.
Submit at the start of the year to avoid deductions.

This way, you can maximize your interest income and keep your hard-earned money safe from unnecessary deductions.

Form 15G and Form 15H: A Complete Guide in Simple Words