Form 15G and Form 15H
Form 15G and Form 15H are self-declaration forms that allow individuals to avoid TDS (Tax Deducted at Source) on certain incomes, mainly interest income, if their total income is below the taxable limit.
Instead of claiming a refund later, these forms help you prevent tax deduction at the source itself.
What this really means
Banks and financial institutions deduct TDS when your interest income crosses a certain threshold.
But if your total income is below the taxable limit, you don’t actually owe tax.
By submitting Form 15G or 15H, you declare that your income is not taxable, so TDS should not be deducted.
Difference Between Form 15G and Form 15H
The main difference is based on age and eligibility:
- Form 15G
- For individuals below 60 years
- Applicable if total income is below the taxable limit
- Also used by HUFs and certain entities
- Form 15H
- For senior citizens (60 years or above)
- Applicable even if interest income exceeds the basic limit, as long as total tax liability is nil
Who Can Submit These Forms?
You can submit Form 15G or 15H if:
- Your total income is below the taxable limit
- Your tax liability is zero
- You are a resident individual (not applicable for NRIs)
Where These Forms Are Used
- Banks (for fixed deposits and savings accounts)
- Post offices
- Financial institutions
- Corporate deposits
These forms are mainly used to avoid TDS on interest income.
Why Form 15G / 15H is Important
Without these forms, TDS may be deducted even if you don’t have taxable income.
Submitting these forms helps you:
- Avoid unnecessary tax deduction
- Improve cash flow (no waiting for refunds)
- Reduce the need for refund claims
- Keep tax compliance clean and accurate
Important Points to Remember
- These forms must be submitted at the beginning of the financial year
- Incorrect declaration can lead to penalties
- PAN is mandatory while submitting the form
- Separate forms may be required for each bank or institution
