Are you worried about TDS deductions on your interest income when your total income is not taxable?

Under Section 194A of the Income Tax Act, banks must deduct TDS if the annual interest earned exceeds ₹40,000 for individuals (other than senior citizens) and ₹50,000 for senior citizens. This threshold applies to the total interest earned across all bank branches.

Budget 2025 Update

TDS under Section 194A is not required if interest income does not exceed specific limits, which have now been increased:

Nature of Interest	Previous Limit	Revised Limit
General limit	₹5,000	₹10,000
Bank, Co-operative Society, or Post Office	₹40,000	₹50,000
Senior Citizens	₹50,000	₹1,00,000

If your total income is below the taxable limit, you can submit Form 15G or Form 15H to your bank to ensure no TDS is deducted on interest earnings.

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What Are Form 15G & Form 15H?

These are self-declaration forms submitted by eligible taxpayers to banks, requesting TDS exemption on interest income due to their total income being below the basic exemption limit. Providing PAN is mandatory for submission. Many banks allow these forms to be submitted online through their websites.

Type of Form	Who Can Submit?	Conditions
Form 15G	Resident individuals below 60 years, HUFs, Trusts, or any other assessee (except companies & firms).	1. No tax liability on total income.2. Interest income is below the basic exemption limit of ₹2.5 lakh (old regime) or ₹3 lakh (new regime) for FY 2023-24.
Form 15H	Resident individuals aged 60 years or more (Senior Citizens).	1. No tax liability on total income.2. No condition on interest income limit.

Important Note:

These benefits are not applicable to Non-Residents (NRIs).

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Example: Who Can Submit Form 15G & 15H?

Age	Salary	Pension	FD Interest Income	Total Income (Before Deductions)	Deductions (Sec 80)	Taxable Income	Basic Exemption Limit	Eligible for Form 15G/15H?
50 years	₹1,80,000	–	₹85,000	₹2,65,000	₹45,000	₹2,20,000	₹2,50,000	Yes, Form 15G
21 years	–	–	₹2,60,000	₹2,60,000	₹30,000	₹2,30,000	₹2,50,000	Cannot submit
65 years	–	₹1,00,000	₹1,80,000	₹2,80,000	₹10,000	₹2,70,000	₹3,00,000	Yes, Form 15H
68 years	–	–	₹3,30,000	₹3,30,000	₹55,000	₹2,75,000	₹3,00,000	Yes, Form 15H

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Key Points to Remember:

• Only resident individuals can avail of Form 15G/15H benefits. NRIs cannot submit these forms.
• Senior citizens can submit Form 15H even if their interest income exceeds the basic exemption limit, as long as their total taxable income remains below the exemption limit after deductions.
• Form 15G is applicable only when interest income is below the basic exemption limit in a financial year.

When Should You Submit Form 15G and Form 15H?

Form 15G and Form 15H are valid for one financial year. Therefore, they should be submitted at the beginning of each financial year to ensure that no TDS (Tax Deducted at Source) is deducted on your interest income by the bank.

Forgot to Submit Form 15G or Form 15H?

If you forgot to submit Form 15G or Form 15H on time, the bank may have already deducted TDS. In such cases, you have two options:

1. File Your Income Tax Return to Claim a Refund:
   • The only way to get a refund of excess TDS is by filing an income tax return.
   • Banks and other deductors cannot refund the deducted TDS, as they have already deposited it with the income tax department.
   • The income tax department will process your refund after you file your return.
2. Submit Form 15G or Form 15H Immediately:
   • Since most banks deduct TDS on a quarterly basis, you should submit the form as soon as possible.
   • This will prevent further TDS deductions for the remaining part of the financial year.
   • To claim a refund for already deducted TDS, file your tax return promptly.

Where Else Can You Submit Form 15G or Form 15H Apart from Banks?

While these forms are commonly submitted to banks, they can also be used in the following situations:

1. TDS on EPF Withdrawal:
   • If you withdraw your EPF balance before completing five years of continuous service, TDS will be deducted if the withdrawal amount exceeds ₹50,000.
   • You can submit Form 15G or Form 15H to avoid TDS, provided that your total taxable income is nil.
2. TDS on Corporate Bonds:
   • If your income from corporate bonds exceeds ₹5,000, TDS is deducted.
   • You can submit Form 15G or Form 15H to the issuer to request non-deduction of TDS.
3. TDS on LIC Maturity Proceeds:
   • If the maturity amount from an LIC policy exceeds ₹1 lakh, TDS is deducted at 5% (effective from September 1, 2019).
   • If PAN details are not submitted, TDS is deducted at 20%.
   • You can submit Form 15G or Form 15H to avoid TDS, provided that your total taxable income is nil.
4. TDS on Post Office Deposits:
   • Digitized post offices also deduct TDS.
   • If you meet the eligibility conditions, you can submit Form 15G or Form 15H.
5. TDS on Rent:
   • If the annual rent exceeds ₹2.4 lakh, TDS is deducted.
   • You can submit Form 15G or Form 15H to the tenant to request non-deduction of TDS (effective from April 1, 2019), provided your total income is below the taxable limit.
6. TDS on Insurance Commission:
   • If the annual insurance commission exceeds ₹15,000, TDS is deducted.
   • Insurance agents can submit Form 15G or Form 15H to avoid TDS if their total income is below the taxable limit.
7. TDS on Dividend Income:
   • If your dividend income exceeds ₹5,000, TDS is deducted.
   • You can submit Form 15G or Form 15H to request non-deduction of TDS.

Important Information for TDS Deductors

If you are a TDS deductor, the Income Tax Act mandates that you:

• Assign a Unique Identification Number (UIN) to each Form 15G or Form 15H submission.
• File a quarterly statement of all received Form 15G/Form 15H.
• Retain these forms for seven years for audit and compliance purposes.

How to Fill Form 15G?

1. Name of Assessee (Declarant): Enter your name as per your PAN card.
2. Status: Indicate whether you are an individual or HUF (Hindu Undivided Family).
3. Previous Year: Enter the financial year for which you are submitting the form.
4. Residential Status: This form is applicable only for residents.
5. Address Details: Provide your complete address, PIN code, email ID, and phone number.
6. Assessed to Tax in the Last 6 Years?
   • If your income exceeded the taxable limit in any of the past six years, select “Yes.”
   • Provide the latest assessment year in which you filed a taxable return.
7. Estimated Income for Which Declaration is Made: Mention the total interest or income on which you seek TDS exemption.
8. Estimated Total Income for the Year: Calculate your total income from all sources, including salary, interest, and other earnings.
9. Details of Other Form 15G Submissions:
   • If you have submitted Form 15G elsewhere in the same financial year, mention the total number of submissions.
   • Provide the total income covered under all such forms.
10. Income Details for Which Declaration is Filed:

• Provide investment/account details (FD, RD, NSCs, LIC policy, etc.).
• Mention the nature of income, the relevant section under which tax is deductible, and the income amount.

11. Signatures: If submitting on behalf of an HUF or AOP, specify your capacity.

When Not to Submit Form 15G?

1. If Your Income is Clubbed with Someone Else’s Income:
   • If your FD interest belongs to a non-earning spouse or child, it will be taxed in the name of the main depositor.
   • In this case, Form 15G is not valid, and TDS will be deducted in the depositor’s name.
2. If You Do Not Meet the Eligibility Conditions:
   • Submitting a false declaration is an offense and can lead to legal consequences.

By understanding when and where to submit Form 15G or Form 15H, you can effectively manage your tax liabilities and prevent unnecessary TDS deductions.

Frequently Asked Questions (FAQs)

Q1: Who is eligible to submit Form 15G and Form 15H?

A: Individuals whose total taxable income is below the exemption limit can submit Form 15G (for individuals below 60 years) and Form 15H (for senior citizens).

Q2: Can NRIs submit Form 15G or Form 15H?

A: No, only Indian residents can submit Form 15G or Form 15H.

Q3: What happens if I forget to submit Form 15G or Form 15H?

A: If you forget to submit the form, TDS will be deducted. You can claim a refund by filing your income tax return.

Q4: When should Form 15G/Form 15H be submitted?

A: These forms should be submitted at the beginning of every financial year to prevent TDS deductions.

Q5: Where can I submit Form 15G/Form 15H apart from banks?

A: You can submit these forms for EPF withdrawals, corporate bonds, LIC policies, post office deposits, rental income, insurance commission, and dividends to avoid TDS.

Q6: Is PAN mandatory for submitting Form 15G/Form 15H?

A: Yes, PAN is mandatory. If PAN is not provided, TDS is deducted at 20%.

Q7: How frequently do I need to submit Form 15G/Form 15H?

A: You need to submit these forms every financial year.

Q8: Can I submit Form 15G for an FD in my child’s name?

A: No, if the interest income from the FD is clubbed with the parent’s income, Form 15G is not valid.

Q9: What is the difference between Form 15G and Form 15H?

A: Form 15G is for individuals below 60 years of age, while Form 15H is for senior citizens (60 years and above).

Q10: Can I submit Form 15G online?

A: Yes, many banks and financial institutions allow online submission of Form 15G through their internet banking portal.

Q11: What should I do if my estimated total income exceeds the basic exemption limit later in the year?

A: If your income exceeds the exemption limit after submitting Form 15G/15H, you should inform the deductor immediately to avoid penalties.

Q12: Is it necessary to submit Form 15G separately for each FD in different banks?

A: Yes, you need to submit Form 15G separately to each bank or financial institution where you have FDs or other taxable income.

Q13: What if I mistakenly submit Form 15G/Form 15H even though I have taxable income?

A: If you wrongly submit the form and your income is taxable, you may be liable for penalties under the Income Tax Act.