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What Is The Use Of Form 15G And Form 15H Under Income Tax Act 1961?


Form 15G and Form 15H are meant to avoid TDS on Fixed Deposits. Both are self declaration forms (not to deduct tax on the deposits), submitted by depositors to the banks at the beginning of the financial year. Form 15G is meant for non-senior citizens whereas Form 15H is meant to be used by senior citizens. If this form is submitted by the deposit holder in respect of his deposit, the bank does not deduct tax while paying interest.

This can be submitted by an individual if he is sure that he will not be required to pay tax in that particular year i.e his total taxable income is going to be less than the permissible limits, then he can submit for 15H or 15G to avoid deduction of TDS from his interest income and other kind of incomes where TDS is applicable.

For Example, A person has invested Rs 15 lakhs in a Bank FD @9% interest for an year. So he should receive Rs 1.35 lakhs interest on his investment for the particular year. As per the tax slab he is not entitled to pay any tax as his income is less than the limit. But banks automatically cuts the TDS when interest income is more than Rs 10,0000. So in this case bank will cut the TDS @10% and pays Rs 13,500 to the government as TAX. As you were not require to pay the tax, now you need to file tax return to get back your 13,500. So to avoid getting into this tedious process there is a simple solution i.e Form 15G and 15H.

In case of Bank deposits, the TDS rate is 10% provided one has furnished his PAN details, otherwise if PAN details are missing the TDS rate is 20% , where as for NRI’s who earn interest on their NRO’s account are subject to 30% TDS.



What Is Form 15G?

  • Form 15G can be submitted by an Individual below the age of 60 years and Hindu Undivided family (HUF).
  • Form 15G should be submitted before the first payment of interest on fixed deposit.

What Is Form 15H?

  • Form 15H can be submitted only by an Individual above the age of 60 years.
  • The estimated tax for the previous assessment year should also be nil. Which means, his previous year income was under the taxable limit and he did not pay any tax even in the previous year.
  • Submit this form at the beginning of the assessment year or before the first payment of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS.
  • You need to submit form 15H to banks if interest from one branch of a bank exceeds 10000/- in a year.
  • You need to submit form 15H If interest on loan, advance, debentures, bonds or say Interest income other then interest on bank exceeds 5000/-.
  • A fresh Form 15H needs to be furnished for each deposit that is placed with the Bank. For example you have many fixed deposit accounts in the same branch, you will have to submit for the each deposit.
  • Deposits held by minors are also subject to TDS. The credit for the TDS can be claimed by the person in whose hands the minor’s income is included.
  • This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit in three SBI bank branches Rs.100,000 each. You must submit the Form 15H to each branch.

However, both the concept of a senior citizen as well as submission of these forms are not applicable in case of NRIs. In other words, NRIs, irrespective of their age, are not eligible to file Form 15G or 15H as the case may be.

Difference between form 15G and 15H

  • Form 15G can be submitted by any individual below the Age of 60 Years while form 15H can be submitted by senior citizens i.e. individual’s above the age of 60 years.
  • Form 15G can be submitted by Hindu undivided families but form 15H can be submitted only by Individual above the age of 60 years.

You can either get the Forms from the banks or financial institutions where you have your deposit or DOWNLOAD FORM online

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  1. I like your simple explanations. If I am residing in Singapore, I will be charged TDS at the rate of 15 percent on my NRO FD due to double taxation treaty.kindly confirm.

    Sawant i h

  2. surendra Prasad

    I am 70 yrs of age. I have FD’s with SBI Bank. The bank has deducted TDS inspite of me submitting the 15H form. I have no other source of income. Please inform me if their is any limit for senior citizen i.e. limit in terms of interest earned.

  3. I am salaried and file my returns. I have a few FDs in a few banks amounting 10L.
    Recently instead of having 5L in a single FD in the same bank, I have taken FDs worth 1L in 5 different banks (NOT branches of same bank) for less than 1 year, so that interest earned is less than 10K.
    I assume TDS is not deducted by all those banks. I also assume I do not need to file returns for the below 10K interest from each bank (as it is not made aware to IT dept) and file returns ONLY for other interests earned which are above 10K.
    Please clarify my understanding. I thought I am saving whereas I hear it is not so. If it is not the case, I would prefer to have all my FDs in a few banks as there is no advantage in depositing in various banks. Pls enlighten me as I am very confused

  4. Amitabh Goswami

    My mom has FD worth 25 lakh in HDFC bank. She is a housewife. She is below 60 yrs hence filled 15G. Now the bank has deducted tax from her.

    Is this right?

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