Under the income-tax regulations, banks and other payers are entitled to claim a deduction at the point of origin on interest, commission, dividends and other such gains when the limit of the deduction has been surpassed. In the case where your overall taxable income of the year remains below the basic exemption limit, you may file either Form 15G or Form 15H to avoid that TDS. These types are a self-declaration that enables one to prevent deduction prior to its occurrence rather than claiming a refund when you do the returns. The knowledge of when and how to use them enhances the cash flow.
Key Takeaways
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Form 15G is for residents below 60; Form 15H is for senior citizens with nil tax liability.
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Submit at the start of each financial year to avoid TDS on eligible income.
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Applicable to interest, dividends, EPF withdrawal, rent and commissions, subject to rules.
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A false declaration can attract penalties under the Income Tax Act.
What Are Form 15G and 15H?
Form 15G and 15H are both self-declaration forms that allow you to avoid the deduction of TDS on certain incomes. When you submit a duly filled and signed Form 15G or Form 15H to the paying entity, you essentially declare that your total estimated income for the financial year is below the basic exemption limit (under the chosen tax regime) and that TDS should not apply to you.
The type of form you need to submit to avail exemption from TDS will vary depending on your status as a taxpayer.
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Form 15G: If you’re an individual aged below 60 years (non-senior citizen), a Hindu Undivided Family (HUF), or a Trust, you need to submit Form 15G. Crucially, for Form 15G, your total interest income must also be less than the basic exemption limit.
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Form 15H: If you’re an individual aged 60 years and above (senior citizen), you need to submit Form 15H. Unlike Form 15G, senior citizens can submit Form 15H even if their total interest income exceeds the exemption limit, provided their final calculated tax after deductions is zero.
Read More: What is Tax Deducted at Source?
Key Differences: Form 15G vs Form 15H
Below is a comparison of 15G and 15H
|
Basis |
Form 15G |
Form 15H |
|
Eligibility |
Resident individuals below 60 years |
Resident senior citizens (60 years or above) |
|
HUF Eligibility |
Yes |
No |
|
Tax Liability Condition |
Total income must be below the basic exemption limit |
Tax liability must be nil after deductions |
|
Income Threshold |
Interest income plus other income must not exceed the exemption limit |
No upper income limit, but the tax payable must be zero |
|
Who Can Submit |
Individuals and HUFs |
Only resident senior citizens |
|
Purpose |
Avoid TDS if the tax payable is nil |
Avoid TDS if the tax payable is nil |
Applicability of TDS
As per the Income Tax Act, Tax Deducted at Source (TDS) is applicable on certain income if the total payable income for any financial year exceeds the specified threshold. Here’s a table outlining the most common categories of income, their TDS threshold limits and the applicable rate of tax.
|
Category of Income |
TDS Applicability |
Rate of TDS |
|
Dividend Income |
Applicable if the total dividend income exceeds ₹5,000 in a financial year |
10% |
|
Interest from Securities |
Applicable if the total income exceeds ₹10,000 in a financial year |
10% |
|
Interest from Bank Deposits |
Applicable if the total interest income exceeds ₹50,000 in a financial year (in the case of non-senior citizens) and ₹1,00,000 in a financial year (in the case of senior citizens) |
10% |
|
Interest from Provident Fund (PF) |
Applicable on interest earned if the total contribution to the PF account during a financial year exceeds ₹2.5 lakhs (in the case of a non-government employee) and ₹5 lakhs (in the case of a government employee) |
10% |
When Is TDS Not Applicable?
The provisions related to Tax Deducted at Source are not applicable under the following circumstances:
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If the income for a financial year doesn’t exceed the threshold limit specified by the Income Tax Act (e.g., ₹50,000 for bank interest for individuals).
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If the income is paid to the nominee or the legal heir on account of the death of the recipient.
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If the recipient submits Form 15G or Form 15H to the paying entity at the beginning of the financial year, certifying that their total tax liability will be nil.
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If the payment is made to certain entities like the RBI, Central or State Governments, or statutory corporations which are exempt from tax.
TDS Sections Where Form 15G/15H Can Be Used
As per tax guidance platforms like ClearTax, Form 15G or 15H can be used under specific TDS sections:
|
TDS Section |
Nature of Income |
Applicability of Form 15G or 15H |
|
Section 194A |
Interest other than securities (bank FD, RD) |
Yes |
|
Section 194D |
Insurance commission |
Yes |
|
Section 194DA |
Insurance maturity proceeds |
Yes (if eligible) |
|
Section 194H |
Commission or brokerage |
Yes |
|
Section 194K |
Income from mutual funds |
Yes |
|
Section 194EE |
NSS withdrawals |
Yes |
|
Section 194I |
Rent (in limited cases) |
Yes, if eligible |
|
EPF withdrawal |
Early withdrawal before 5 years |
Yes |
Where Can You Get Form 15G and Form 15H?
You can get both Form 15G and Form 15H from the entity responsible for making the payment. Some entities even allow you to download the forms from their official websites. Alternatively, you can also visit the nearest branch of the paying entity to get access to these forms.
Furthermore, you can also find the forms on the official website of the Income Tax Department. All you need to do is simply visit the official website, click on the ‘Quick Access’ tab on the right side of the webpage and then on the ‘Income Tax Forms’ link. You will be redirected to a new webpage where you can download Form 15G and Form 15H in a PDF format. As of 2025-26, for securities held in a Demat account, you can now submit a single consolidated Form 15G/H to your Depository (NSDL/CDSL) to cover all your holdings.
TDS on EPF Withdrawal
When you withdraw funds from your Employees’ Provident Fund (EPF) account before you complete 5 years of continuous service, TDS at 10% is deducted from the amount withdrawn, provided you have submitted your PAN.
However, TDS will only be applicable if the withdrawal amount exceeds ₹50,000 in a financial year. Even if the withdrawal amount exceeds ₹50,000, you can still avoid TDS deduction by uploading a digital copy of Form 15G (for non-senior citizens) or Form 15H (for senior citizens) directly to the EPFO Unified Portal while filing your online claim.
Note: TDS on EPF withdrawals is not applicable if you withdraw after the completion of five years of continuous service. Crucially, if you fail to provide your PAN during a pre-5-year withdrawal exceeding ₹50,000, TDS will be deducted at the maximum marginal rate of 20% instead of 10%.
How To Fill Form 15G or Form 15H
As a recipient and potential taxpayer, you need to know how to fill out Form 15G and 15H. This can help you avoid unnecessary TDS deductions. Here’s a quick outline of the steps you need to follow to complete the forms.
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Step 1: Download and print Form 15G or Form 15H, whichever is applicable to you, or access the digital version via your bank's net banking portal.
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Step 2: Under ‘Part I’ of the form, enter your personal details such as your name, PAN, date of birth, the Previous Year (2025-26), the Assessment Year (2026-27) and your complete residential address.
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Step 3: Enter the estimated income for which this declaration is made, followed by the estimated total income of the Previous Year in which the declaration is being made.
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Step 4: Specify the total number of other Form 15G or Form 15H forms that you filed with other entities during the year and the aggregate amount of income for which those forms were filed.
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Step 5: Enter the details of the income for which you wish to make the declaration. This includes the identification number of the investment account (such as FD account number, folio number, or Demat account ID), the nature of the income, and the Section under which tax is deductible.
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Step 6: Fill all the fields under the ‘Declaration/Verification’ section, ensuring you mention the Previous Year and Assessment Year again.
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Step 7: Affix your signature above ‘Signature of the Declarant’ and submit the form with the paying entity.
Note: You don’t have to fill in Part II of Form 15G or 15H since it is reserved for the entity paying the income (the deductor).
When and Where to Submit Form 15G/15H?
Both Form 15G as well as Form 15H are to be filed at the start of the financial year to the paying institution- usually banks, post offices, companies or other financial institutions. The declaration has to be filed before TDS can be deducted. In case you fail to meet the deadline and TDS has been paid, you can only receive a refund by completing your income-tax return. The forms are submitted either physically at branches or through the internet-banking portal at the majority of banks, and also through an account that is registered (some institutions). New declarations must be made on a financial year-to-year basis, and the old forms are not carried forward.
Legal Warning: Submitting a False Form 15G/15H
Form 15G and Form 15H is a declaration under the law on the Income Tax Act. It indicates that you are expected to earn an amount of income that is less than the taxable amount in the current year, or the tax payable is nil. A false declaration made at a time when one is aware of the consequences may result in punishments and prosecution in extreme instances. The declarant is entirely responsible. Write down all your income, salary, interest, capital gains, etc., before filling it in. In case deductions have reduced your tax payable to a positive value, then do not file the form. Abuse of the form by using it to postpone payment may lead to future compliance and notices.
Where Can You Submit Form 15G or Form 15H Apart From Banks?
Apart from banks, Form 15G or Form 15H can be submitted to various institutions where TDS applies.
1. TDS on EPF Withdrawal
If EPF is withdrawn before completing five years of service and income is taxable, eligible individuals can submit Form 15G or Form 15H to avoid TDS.
2. TDS on Income from Corporate Bonds
Interest from corporate bonds may attract TDS. Eligible investors with nil tax liability may provide the declaration.
3. LIC Maturity Proceeds
If maturity proceeds are taxable under Section 194DA, policyholders may submit Form 15G or Form 15H when tax payable is zero.
4. TDS on Post Office Deposits
Interest from post office schemes that cross threshold limits can attract TDS. The forms may be submitted to prevent deduction.
5. TDS on Rent
Under certain TDS provisions on rent, eligible individuals with nil tax liability may use the forms.
6. TDS on Insurance Commission
Insurance agents receiving commission income can submit Form 15G or Form 15H if they qualify.
7. TDS on Dividends
Dividend income exceeding specified limits may attract TDS. Eligible resident investors can provide the declaration to avoid deduction.
Read More: How to file the TDS return?
Conclusion
Form 15G or 15H is used to assist individuals who are eligible to avoid paying unneeded TDS when they do not have any tax liability. It enhances the cash flow and does not make one wait until they receive the refunds after filing the returns. The forms, however, should be utilised responsibly. Their filing is based on the estimated income; filing it without verifying their eligibility may provoke penalties. Check your total annual earnings, then file. In case tax is to be paid, deduct TDS and make adjustments with the returns. These forms should be used properly to facilitate easy compliance with the taxes.
