Form 15G and Form 15H — How to Prevent TDS on FD Interest, EPF Withdrawal, and Other Income

Banks deduct TDS at 10% on fixed deposit interest the moment it crosses ₹40,000 in a financial year (₹50,000 for senior citizens). If your total income is below the taxable limit, that TDS is money you'll eventually get back — but only after filing your return and waiting months for a refund. Form 15G and Form 15H let you skip that wait entirely by telling the payer not to deduct TDS in the first place.

With the enhanced Section 87A rebate under the new tax regime for AY 2026-27, far more people now qualify to submit these forms than in previous years. If your total income is under ₹12 lakh (₹12.75 lakh for salaried employees after standard deduction) and you've opted for the new regime, your tax liability is nil — and you can prevent TDS from being deducted on your interest income, EPF withdrawal, and more.

This guide covers exactly who qualifies, how to submit these forms, the common mistakes that lead to penalties, and what to do if TDS has already been deducted.

What Are Form 15G and Form 15H?

Both are self-declaration forms you submit to a payer (your bank, post office, EPF trust, or any entity deducting TDS) stating that your estimated total income for the year results in nil tax liability. Once the payer accepts your declaration, they stop deducting TDS on that particular income.

The difference between the two is simple:

Neither form can be submitted by NRIs. If you're a non-resident, TDS on your income is deducted under different sections (like 195), and these forms don't apply.

Eligibility — Who Can Submit Form 15G?

Form 15G has two conditions, and both must be satisfied:

Condition 1: The tax calculated on your estimated total income for the financial year — after applying all deductions, exemptions, and the Section 87A rebate — must be nil.

Condition 2: The aggregate amount of interest income for which you're submitting Form 15G must not exceed the basic exemption limit.

For AY 2026-27 (FY 2025-26), the basic exemption limit is:

• ₹4,00,000 under the new tax regime (default)
• ₹2,50,000 under the old tax regime (for those below 60)

Practical example

Rahul (age 35) has a salary of ₹7,00,000 and FD interest of ₹3,50,000 from his bank. He opts for the new tax regime.

• Total income: ₹10,50,000
• After standard deduction (₹75,000): ₹9,75,000
• Tax before rebate: ₹52,500
• Section 87A rebate: ₹52,500 (since taxable income is under ₹12,00,000)
• Net tax: Nil → Condition 1 is met
• FD interest of ₹3,50,000 is below ₹4,00,000 (basic exemption limit under new regime) → Condition 2 is met

Rahul can submit Form 15G to his bank.

When Condition 2 blocks you

Priya (age 28) has a salary of ₹6,00,000 and earns ₹4,50,000 in FD interest across two banks. She opts for the new regime.

• Total income: ₹10,50,000 → tax is nil after 87A rebate → Condition 1 met
• But her total FD interest of ₹4,50,000 exceeds the ₹4,00,000 basic exemption limit → Condition 2 fails

Priya cannot submit Form 15G, even though her tax liability is zero. She'll need to let TDS be deducted and claim a refund when filing her ITR.

Eligibility — Who Can Submit Form 15H?

Senior citizens (aged 60 or above) have it easier. Form 15H has only one condition: the tax on your estimated total income for the year must be nil. There is no upper limit on the interest amount.

Example

Mr. Sharma (age 68) has pension income of ₹4,00,000 and FD interest of ₹6,00,000. Under the new regime:

• Total income: ₹10,00,000
• Tax before rebate: ₹30,000
• Section 87A rebate: ₹30,000
• Net tax: Nil

Despite earning ₹6 lakh in interest, Mr. Sharma can submit Form 15H — there's no Condition 2 restriction for senior citizens.

Under the old regime, Mr. Sharma would also benefit from the higher basic exemption (₹3,00,000 for 60–80 years, ₹5,00,000 for 80+) and the ₹50,000 deduction under Section 80TTB.

Where to Submit Form 15G / 15H

You must submit the form to each payer separately. Common scenarios:

Banks: Submit to every bank where you hold FDs, RDs, or savings accounts that might generate interest above the TDS threshold. If you have FDs with three different banks, submit Form 15G/15H to all three.

Post office: For deposits in post office schemes (Time Deposits, Senior Citizen Savings Scheme, Monthly Income Scheme) where TDS applies.

EPF (Employees' Provident Fund): If you're withdrawing your EPF balance and the amount exceeds ₹50,000, TDS is deducted at 10% (or 20% if PAN is not linked). Submit Form 15G along with your withdrawal application to avoid TDS — provided your total income is below the taxable limit.

Insurance companies: For maturity proceeds of life insurance policies where TDS applies under Section 194DA.

Companies issuing debentures: For interest on listed or unlisted debentures.

When to Submit

At the start of each financial year. Form 15G/15H is valid for one financial year only. You must submit a fresh form each year, ideally in April. Banks typically ask you to renew it; don't wait for them — submit proactively to avoid TDS being deducted in the first quarter.

Before the first credit. If your FD interest is credited quarterly, submit before the first quarter's credit date. TDS once deducted cannot be reversed by the bank — you'll need to claim a refund through your ITR.

For EPF withdrawal: Submit along with your withdrawal claim form (online via the EPFO portal or offline). This is a one-time submission for each withdrawal, not an annual form.

How to Submit Form 15G / 15H

Online (most banks)

1. Log in to your bank's internet banking or mobile banking app
2. Navigate to "Tax Centre" or "Form 15G/15H" section (exact location varies by bank)
3. Fill in your PAN, estimated total income, and the FD accounts covered
4. Submit — the bank will process it and stop TDS deduction

Most major banks (SBI, HDFC, ICICI, Axis, Kotak) support online submission.

Offline

1. Download Form 15G or 15H from the income tax website or your bank's website
2. Fill in Part I (the declarant's section): your name, PAN, address, assessment year, estimated total income, and details of income for which you're making the declaration
3. Sign and submit to the bank branch
4. The bank fills in Part II and issues an acknowledgement

For EPF withdrawal

When filing your EPF withdrawal claim on the EPFO Member Portal, upload Form 15G as part of the claim process. Select "Yes" when asked if you want to upload Form 15G.

Key Fields You Need to Fill

Getting the "estimated total income" wrong is the most common mistake. Don't enter just your interest income — enter your total income from all sources. If this figure shows that your tax liability won't be nil, the form becomes invalid.

Sections Covered by Form 15G / 15H

These forms prevent TDS under specific sections only:

They do not cover TDS on salary (Section 192), professional fees (Section 194J), rent (Section 194-I), or contract payments (Section 194C).

What Happens If You Submit Incorrectly?

If you submit Form 15G/15H when you're not actually eligible — say your total income turns out to be above the taxable limit — the consequences can be serious:

• Section 277: Filing a false declaration is an offence. If the tax sought to be evaded exceeds ₹25,000, the penalty can include imprisonment for 6 months to 7 years and a fine
• Penalty under Section 271C: The payer who accepted the form without due diligence may also face penalties

In practice, the Income Tax Department cross-checks Form 15G/15H declarations against your actual ITR. If your filed return shows taxable income while you declared nil tax liability in Form 15G, expect a notice.

The safe approach: estimate your income conservatively. If you're unsure whether you'll stay under the taxable limit (perhaps you expect a bonus or capital gain later in the year), don't submit the form. Let TDS be deducted and claim the refund when you file.

The New Regime Advantage for Form 15G / 15H

Before the enhanced Section 87A rebate, only people with total income below ₹5 lakh (old regime) could realistically have nil tax liability and submit these forms. That excluded most salaried employees.

Under the new regime for AY 2026-27, the rebate makes income up to ₹12 lakh effectively tax-free. This dramatically expands who qualifies:

If you've been letting banks deduct TDS on your FDs out of habit, check whether you now qualify under the new regime.

Already Had TDS Deducted? Here's What to Do

If TDS was deducted before you submitted Form 15G/15H, or if you weren't aware of these forms:

1. File your ITR — report all income including the interest, and claim TDS credit using the details from your Form 26AS and AIS
2. The excess TDS becomes a refund — the department will process your return and issue a refund to your bank account
3. Submit Form 15G/15H for the next year — prevent the same situation from recurring

The refund typically takes 2–6 months after filing, depending on when you file and whether the return is selected for processing.

Common Mistakes to Avoid

Not submitting to all institutions. If you have FDs with SBI and HDFC Bank, submit Form 15G to both. One bank won't know about the other's declaration.

Underreporting estimated total income. Enter your income from all sources — salary, business, rental, capital gains, interest — not just the income from that particular bank. The tax department cross-verifies this.

Forgetting to renew annually. Form 15G/15H expires at the end of each financial year. Many taxpayers submit once and assume it carries forward. It doesn't.

Submitting when income is uncertain. If you might receive a bonus, sell property, or have capital gains that push your income above the taxable limit, don't submit the form. Let TDS be deducted and claim the refund — it's safer than facing a false declaration penalty.

Not linking PAN with the bank. Without a valid PAN on your bank account, TDS is deducted at 20% instead of 10%. Form 15G/15H can't override this if your PAN isn't linked.

Actionable Takeaway

At the start of each financial year, estimate your total income from all sources. If it falls within the nil-tax bracket — which under the new regime means up to ₹12 lakh (₹12.75 lakh for salaried) — submit Form 15G or 15H to every bank and institution that might deduct TDS on your interest income. Do it in April, before the first quarter's interest is credited. If your income situation is uncertain, skip the form and let TDS happen — you can always claim it back when you file your return. 49Tax can help you calculate whether your total income results in nil tax liability and whether submitting Form 15G/15H makes sense for your situation.