Introduction

Banks deduct TDS on interest earned from fixed deposits, recurring deposits, corporate deposits, and other investments if the interest exceeds specified limits.

However, individuals whose income is below the taxable limit can avoid this TDS deduction by submitting Form 15G or Form 15H to their bank or financial institution.

Although both forms help prevent unnecessary TDS deduction, they apply to different categories of taxpayers. This guide explains the differences, eligibility, filing process, and precautions to ensure correct usage.

What Is Form 15G?

Form 15G is a self-declaration form submitted by individuals to ensure that banks do not deduct TDS on their interest income because their total taxable income is below the basic exemption limit.

✔ Eligible Individuals for Form 15G

• Resident individuals below 60 years of age

• HUFs (Hindu Undivided Families)

• Total tax liability must be NIL.

• Total interest income + other income must be below the basic exemption limit.

❌ Not Eligible:

• NRIs

• Senior citizens (60+ years)

What Is Form 15G?

Form 15H is similar to Form 15G but specifically designed for senior citizens (60 years and above) whose total tax liability is nil, even if their interest income exceeds the basic exemption limit.

✔ Eligible Individuals for Form 15H

• Resident individuals below 60 years of age

• Total tax liability is nil

✔ Benefit:

Even if interest income exceeds the basic exemption limit, Form 15H can still be submitted as long as tax liability is zero after deductions (80C, 80D, etc.).

Key Differences Between Form 15G and Form 15H

Where Are These Forms Required?

You may submit Form 15G/15H for:

• Bank Fixed Deposits (FD/RD)

• Post office deposits

• Corporate deposits/NBFC deposits

• EPF withdrawal (if service < 5 years)

• TDS on rental income (if applicable)

• Insurance maturity proceeds

How to Submit Form 15G or Form 15H

1. Online Submission




• Most banks offer online submission via net banking

2. Offline Submission




Download the form from the bank or income tax website and submit it at the branch

3. Required Details



• PAN Number.

• Estimated total income

• Estimated interest income

• Previous year’s taxable status

• Bank account details.

Important Precautions

✔ Submit at the beginning of the financial year

This ensures that banks do not deduct TDS in any quarter

✔ Ensure your tax liability is zero

Incorrect declaration may attract penalty.

✔ PAN is mandatory

Without PAN, TDS will be deducted at 20%

✔ Submit separate forms for each bank

Banks do not share information with each other.

✔ Keep acknowledgment receipts

Required during tax filing.

When Should You Not File Form 15G/15H?

Do not file these forms if:

• Your total income is taxable

• Your tax liability is not zero.

• Updated KYC and OTP verification may be required.

• You are an NRI.

• You want to avoid TDS despite having taxable interest income.

Incorrect filing can lead to under-reporting penalties and scrutiny.

Conclusion

Forms 15G and 15H are useful tools for individuals and senior citizens to avoid unnecessary TDS on interest income. Correct usage ensures better cash flow and prevents tax refunds from getting blocked until the end of the year

Understanding the eligibility criteria and filing process ensures full compliance with income tax rules.

Bisways Consulting Group assists with tax planning, investment advisory, TDS compliance, and income tax filing to help individuals avoid mistakes and optimise their tax position.