Form 15G & 15H — Avoid TDS on FD Interest (2026 Rules, Who Can Submit)
Verified July 2026 · General information, not tax advice — confirm your eligibility with your bank or a professional.
- 15G = residents below 60 / HUF; 15H = seniors 60+.
- FD TDS kicks in above ₹50,000/year (₹1,00,000 seniors) for FY 2025-26.
- Eligible only if your total income is below the taxable limit.
- Submit at the start of the year, to each bank, valid 1 year.
- TDS is 10% with PAN, 20% without.
- A false declaration can attract penalty/prosecution.
- Being replaced by Form 121 from FY 2026-27.
What Form 15G and 15H actually do
When your bank pays you interest — on a fixed deposit, recurring deposit or even certain other incomes — it is required to deduct tax at source (TDS) once that interest crosses a threshold. But TDS is a blunt instrument: it's deducted even if your overall income is so low that you owe no tax at all. In that case, you'd have to file a return just to claim a refund of tax that should never have been cut.
Form 15G and Form 15H exist to prevent that. They are simple self-declarations that tell the bank, "My total income for the year is below the taxable limit, so please don't deduct TDS on my interest." Give the form in time and the bank pays your interest in full, with no TDS and no refund hassle later.
15G or 15H — which one is yours?
| Form 15G | Form 15H | |
|---|---|---|
| Who | Resident individual below 60, or a HUF | Resident senior citizen (60+) |
| Core condition | Total taxable income below the basic exemption limit | Final tax liability is nil after deductions and rebate |
| Non-residents | Not allowed | Not allowed |
The key difference is subtle but important. For 15G, your total income must be below the basic exemption limit. For 15H, the test is that your final tax works out to zero after all deductions and the rebate — which is easier for many seniors to satisfy, since they get a higher exemption and can use rebates.
The FD interest TDS limits (FY 2025-26)
Banks don't deduct TDS on every rupee of interest — only once your interest in the year crosses a threshold, which was raised for FY 2025-26:
| Depositor | TDS threshold (interest/year) |
|---|---|
| Individual below 60 | ₹50,000 |
| Senior citizen (60+) | ₹1,00,000 |
Once you cross the threshold, TDS is 10% if your PAN is on record, or 20% if it isn't. So step one is always to make sure your PAN is updated with the bank — otherwise you're taxed at double the rate even before considering 15G/15H.
The basic exemption limit that decides eligibility
Because Form 15G hinges on your income being below the basic exemption limit, it helps to know what that is. Under the new tax regime for FY 2025-26, the basic exemption is ₹4 lakh; under the old regime it's ₹2.5 lakh (₹3 lakh for seniors). If your total income for the year — salary, pension, interest, everything — sits below that limit, you can declare so on the form. If it's above, you are not eligible, even if TDS feels annoying.
Where you can submit these forms
Form 15G/15H isn't only for bank FDs. You can give it to any payer who would otherwise deduct TDS on income where these forms apply:
- Banks and post offices — on FD and RD interest.
- EPFO — to avoid TDS on an early EPF withdrawal (see our EPF withdrawal guide).
- Companies — on certain dividend income above the threshold.
- Insurers — on some taxable insurance payouts.
- Corporate deposit / NBFC — on interest they pay you.
Remember the forms are payer-specific: if you have deposits in three banks, you must give the form to each of the three separately. One submission doesn't cover them all.
How to submit — step by step
- Confirm you're eligible (income below the limit for 15G, or nil final tax for 15H).
- Get the form from your bank's net-banking portal, the income-tax e-filing site, or the branch.
- Fill your PAN, estimated total income, and the interest amount for which you're claiming no TDS.
- Submit it at the start of the financial year (April), before any interest is credited.
- Repeat for every bank/payer, and keep the acknowledgement.
Timing matters a lot. If you submit late — after TDS has already been deducted for a quarter — the bank won't reverse the tax already cut; you'd have to claim that portion as a refund in your return. So the golden rule is submit in April.
The mistake that can cost you: a false declaration
It's tempting to submit Form 15G just to stop TDS, even when your income is actually taxable. Don't. These forms carry a declaration that your income is below the limit, and giving a false declaration to evade TDS is an offence under the Income-tax Act — it can attract penalty and even prosecution. If your income is genuinely taxable, the right approach is to let TDS be deducted and adjust it against your final tax, or plan your investments so your income legitimately stays low. Never sign a declaration that isn't true.
What if TDS was already deducted?
If you missed the April window and the bank deducted TDS, the money isn't lost — it's sitting as a tax credit against your PAN. It will show up in your Form 26AS/AIS, and when you file your return you can claim it back as a refund (or set it off against any tax due). Our guide on reconciling Form 16, 26AS and AIS explains how to make sure that credit is captured correctly.
The change coming: Form 121
Under the new Income Tax Act, 2025, Form 15G and Form 15H are set to be merged into a single Form 121 from FY 2026-27. The purpose is the same — declaring that your income is below the taxable limit so no TDS is deducted — but the paperwork will be unified. For now (FY 2025-26), keep using 15G or 15H depending on your age; watch for your bank rolling out Form 121 next year.
A quick worked example
Meena, aged 45, has FDs earning ₹70,000 interest this year and no other income. Since ₹70,000 is above the ₹50,000 threshold, the bank would normally deduct 10% TDS = ₹7,000. But Meena's total income (₹70,000) is well below the ₹4 lakh basic exemption, so she is eligible for Form 15G. By submitting it in April, she receives the full ₹70,000 with no TDS — and no need to file a return just to claim a refund. That's exactly the situation these forms are built for.
Related guides
Also read our guides on EPF withdrawal and TDS and reconciling Form 16, 26AS and AIS. Planning deposits? Use the FD calculator.
Frequently asked questions
What is Form 15G and 15H?
Self-declarations to your bank so it doesn't deduct TDS on interest, if your income is below the taxable limit. 15G for below 60, 15H for seniors.
What's the FD TDS limit?
FY 2025-26: TDS above ₹50,000 interest/year (₹1,00,000 for seniors); 10% with PAN, 20% without.
Who can submit 15G?
A resident below 60 (or HUF) whose total income is below the basic exemption (₹4 lakh new regime, FY 2025-26).
When should I submit it?
At the start of the year, to each bank; valid one year, resubmit annually.
Is it being replaced?
Yes — by a unified Form 121 from FY 2026-27.
What if I submit it wrongly?
A false declaration is an offence and can attract penalty/prosecution — only submit if you genuinely qualify.
About the author. Written by Dinesh Kumar S, Chennai — B.Sc. Mathematics, M.Sc. IT — who runs Finance Guided and ComplyKraft to explain Indian money rules in plain language.
Disclaimer: General information, verified July 2026. Thresholds, limits and forms are set by the government and can change — confirm with your bank or a tax professional before acting.
Dinesh Kumar S
Founder & AuthorDinesh is an accounts & GST compliance professional with 5+ years inside the Indian tax-compliance machinery at a Chennai-based IT services company. He writes a regulation-reader's column on Indian personal finance — every claim anchored to the actual Act, regulation, or circular it comes from. No product sales, no commissions, no paid placements.