The self-declaration forms that stop unnecessary TDS on interest income — who qualifies, how to fill them correctly, and the mistakes that get them rejected by banks every year.
What Are Form 15G and Form 15H?
Form 15G and Form 15H are self-declaration forms under Section 197A of the Income Tax Act, submitted to banks, post offices, and other payers to request that no TDS be deducted on interest or other specified income, on the ground that the declarant’s total income for the year is expected to remain below the taxable threshold.
Form 15G
- For resident individuals below 60 years and HUFs
- Total income must be below the basic exemption limit
- Final tax liability for the year must be nil
- Not available to NRIs, companies, or firms
Form 15H
- For resident individuals aged 60 years and above
- No income-level pre-condition beyond nil final tax liability
- Can be filed even if estimated income exceeds the basic exemption limit, as long as tax liability after rebate is nil
- Also restricted to resident individuals only
Eligibility Criteria
Resident status only
Both forms are strictly for resident individuals and HUFs. Non-Resident Indians cannot use Form 15G or 15H to prevent TDS on NRO account interest, regardless of their income level.
Age determines the form
Below 60 years on the date of declaration → Form 15G. 60 years or above → Form 15H. Using the wrong form for your age bracket is one of the most common and easily avoidable rejection causes.
Nil final tax liability
The core declaration is that your total estimated tax liability for the year — after all deductions and rebates — will be nil. This is not simply about staying under the basic exemption limit; Section 87A rebate can also bring liability to nil at somewhat higher income levels for Form 15H filers.
TDS Thresholds That Trigger the Need
Form 15G/15H becomes relevant once a payer’s interest credit to you would otherwise cross the TDS threshold under Section 194A and similar provisions:
| Income Category | Standard TDS Threshold | Senior Citizen Threshold |
|---|---|---|
| Bank/post office/co-operative society interest (FD, RD, savings) | ₹50,000 | ₹1,00,000 |
| Interest on securities | ₹10,000 | ₹10,000 |
| EPF withdrawal (before 5 years’ continuous service) | ₹50,000 | N/A |
Without a valid Form 15G/15H on file, the bank deducts TDS at 10% once these thresholds are crossed (provided PAN has been furnished) — recoverable only by claiming a refund when filing your ITR.
How to Fill the Form Correctly
Get the financial year right
Enter the current financial year (e.g., “2026-27”) as the “Previous Year” for which the declaration is being made — an outdated year reference is a frequent, entirely avoidable rejection cause.
Estimate total income accurately, across all sources
Include all expected income for the year — not just the interest from the branch you’re submitting to. Understating total income to qualify is a false declaration and attracts penalty under Section 277.
Disclose other Form 15G/15H already filed this year
If you hold deposits at multiple branches or institutions, the form requires you to state the aggregate income and the number of other declarations filed in the same year — banks cross-check this, and omitting it is a common rejection trigger.
Match your name and PAN exactly to bank records
Even minor spelling mismatches between the form and the bank’s KYC records can cause automatic rejection by the bank’s processing system.
Submit before the interest is credited or paid
Form 15G/15H must reach the payer before TDS would otherwise be deducted. Submitting after deduction has already occurred does not undo the deduction — you’ll need to claim it back through your ITR.
Common Rejection Reasons
Why banks reject Form 15G/15H submissions
- Inoperative PAN: If PAN is not linked to Aadhaar, the declaration is treated as invalid and TDS is deducted at the higher inoperative-PAN rate regardless of the form.
- Wrong form for age: A 62-year-old submitting Form 15G instead of Form 15H, or vice versa, is rejected outright by most banking systems.
- Total income understated: Declaring an income estimate that doesn’t add up against the bank’s own interest projections, or omitting other income sources.
- NRI status: These forms are for residents only — an NRO account holder’s declaration will be rejected.
- Late submission: Filed after TDS has already been deducted for the relevant credit — the form only prevents future deduction, not past deduction.
- One form per financial year, per institution: A form filed in a prior year does not automatically carry forward; a fresh declaration is required every financial year, at every deposit-holding institution.
- Signature/date mismatch or incomplete fields: Missing declaration fields — like whether you were assessed to tax in any of the preceding six years — cause administrative rejection.
Form 121 — What Changes Under IT Act 2025 NEW
From Tax Year 2026-27 onward, a new unified Form 121 replaces both Form 15G and Form 15H under the Income-tax Rules, 2026. The age-based distinction between the two forms is eliminated — any eligible resident taxpayer whose estimated tax liability is nil may submit Form 121 to the payer to prevent TDS deduction.
Which form applies to which year
Declarations for FY 2025-26 (a tax year governed by the old Act) continue to use Form 15G/15H. Form 121 applies to income earned from Tax Year 2026-27 onward. During the transition, expect both forms to be in active use across different institutions and different income periods for a while.
Common Questions
Is there a penalty for not filing Form 15G/15H when eligible?
No. Filing is entirely optional — it’s a benefit available to eligible taxpayers, not a mandatory filing. If you don’t submit it, TDS is simply deducted and you claim it back via your ITR.
Can I submit Form 15G for EPF withdrawal?
Yes, provided your total income is below the taxable threshold and the withdrawal amount would otherwise attract TDS due to less than five years of continuous service.
What happens if I submit a false declaration?
Making a false statement in Form 15G or 15H is an offence under Section 277 of the Income Tax Act and can attract prosecution, in addition to the tax, interest, and penalty on the underlying income.
Do I need to submit Form 15G/15H separately at each bank branch?
Generally yes, if you hold deposits across different branches or institutions — each payer requires its own declaration, and the form must disclose your aggregate income and other declarations filed for the year.