Form 15G & 15H: How to Save TDS on Interest Income?

Form 15G and Form 15H: You can avoid tax deduction/TDS on your interest income if you are an individual, who is resident in India by furnishing, a declaration in writing in Form 15G/15H. You can only submit form 15G or 15H if your income is below the exemption limit. There are some provisions to submit 15H or 15G to avoid TDS in the case of fixed deposit as follows:

First of all, you need to understand that tax has to be deducted at source by banks on your FD interest. The bank will deduct TDS on interest paid or credited on your fixed deposits. In order to save tax, you need to submit Form 15G & 15H to the bank.

According to section 194A of the Income Tax Act, banks must deduct TDS (Tax Deducted at Source) on interest income exceeding Rs.40,000 annually for individuals and Rs.50,000 for senior citizens. The bank calculates this limit by summing up the interest earned from deposits maintained across all branches.

👉 Form 15G and Form 15H: A Simple Guide

Nevertheless, if your overall income falls below the taxable bracket, then you can do the following steps to stop banks from deducting TDS:

✅  Present Form 15G or Form 15H:

✔️Form 15G – Individuals aged below 60 years.

✔️Form 15H – Senior citizens (age 60 and above)

✅ Qualification for Submission:

✔️Income less than or equal to the basic exemption limit

✔️Zero tax on total income computed

✅ Process:

✔️Complete either Form 15 G or Form No. 15-H as applicable.

✔️Deliver this filled-in document to your bank.

These forms indicate that one’s earnings are under chargeable limits, thereby entitling them not to have any taxes deducted from their savings account’s gains.

👉  What is Form 15G and 15H?

Form Form 15G Form 15H
✔️Eligibility Resident Individual, HUF, trust, or any other assessee but not a company or firm, aged less than 60 years. Resident individual aged 60 years or more (Senior citizen).
✔️Tax Liability Tax calculated on total income is Nil. Tax calculated on total income is Nil.
✔️Interest Income Limit Total interest income for the year is less than the basic exemption limit of that year. Annual FD interest can exceed the exemption limit if tax payable on total income after rebate u/s 87A is nil.
✔️Basic Exemption Limit (2023-24) Rs. 2.5 lakh (old regime) or Rs. 3 lakh (new regime). Rs. 2.5 lakh or Rs. 5 lakh (considering rebate u/s 87A).
✔️Compulsory Requirement Providing PAN is compulsory. Providing PAN is compulsory.
✔️Submission Method Some banks allow online submission through the bank’s website. Some banks allow online submission through the bank’s website.
✔️Non-residents Benefits cannot be claimed by Non-residents. Benefits cannot be claimed by Non-residents.

👉 Download Form 15G and 15H

Here are the links to download Form 15G and Form 15H from the official Income Tax Department of India website:

Particulars Links
✔️Download Form 15G Download Here
✔️Download Form 15H Download Here

You can click on these links to access and download the respective forms.

👉 Uploading Due Dates of Payer

The payer or bank who receives the declaration in Form NO.15G/15H will upload the form 15H or 15G with a digital signature within:

✔️15 days from the end of the first, second and third quarter

✔️30 days from the end of the fourth quarter.

Form 15G & 15H

👉 FAQ on 15G & 15H to Avoid TDS on FD

✅ Q. Who need to submit form 15G and 15H to avoid TDS on FD?

A. Form 15H need to be submitted by a senior citizen (age above 60 years) and Form 15G needs to be submitted by individuals other than a senior citizen.

✅ Q. What is the validity of forms 15G & 15H?

A. Validity of the forms is a single financial year.

✅ Q. What is the proof I have submitted the 15G & 15H form I have submitted at the bank?

A. Banker would issue an acknowledgement statement to the submitter, also bank issue form 16A stating the deduction of TDS.

✅ Q. What if an Individual miss to submit form 15G & 15H to the bank and TDS was deducted, but my income is non-taxable; how can one get my money back?

A.One need not worry you are eligible for a tax refund from the government. An individual needs to submit the 16A form received from the bank while filing tax.

2 thoughts on “Form 15G & 15H: How to Save TDS on Interest Income?”

  1. I submitted filled up 15G Form for FY 2014,2015,2016 unfortunately bank did not docket it that I knew when I saw Rs1046,Rs3609 Rs08 have been deducted from my maturity value of FD as TDS more over bank did not submit deducted amount Rs3609 of FY 2015-16 as result FORM 26AS showing no transaction present[updated on 04-07-2017] .My income was always lower than taxable income.Several time I contact BM to get FORM 16A BUT till date I did not get it. please help me how I can get back deducted amount.

    Reply
  2. Please show me the provision whereby , it is provided that form 15 H has to be submitted once in a year per pan number?Per Bank.
    Shah D J

    Reply

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