Form 15G & 15H (now Form 121): Stop TDS on Interest Income
Forms 15G and 15H are self-declarations that stop your bank or payer from deducting TDS on interest, when your income is below the taxable limit. Form 15H is for senior citizens; Form 15G for everyone else. Under the Income-tax Act 2025 the two are merged into a single Form 121 (with Section 197A becoming 393(6)) from the tax year 2026-27. Check which one you can file, and the exact conditions.
Eligibility checkerWhat they areConditionsTDS thresholdsWhere you can use themHow to submitCautionsFAQs
Should I file Form 15G or Form 15H?
What Forms 15G and 15H are
Banks and other payers must deduct TDS on interest once it crosses a threshold. But if your total income for the year is below the taxable limit, that TDS is money you would only get back later as a refund. Forms 15G and 15H let you tell the payer upfront, “my income is not taxable, please do not deduct TDS.” They are self-declarations under Section 197A: Form 15H is for resident senior citizens (60 and above), and Form 15G is for resident individuals below 60, HUFs and trusts. Non-residents cannot use either form.
The eligibility conditions
The two forms have deliberately different conditions — this is the point most people get wrong.
| Form 15G (below 60) | Form 15H (60 and above) | |
|---|---|---|
| Residential status | Resident only | Resident only |
| Condition 1 | Estimated tax on total income is nil | Estimated tax on total income is nil |
| Condition 2 | Interest income for the declaration does not exceed the basic exemption limit | No second condition — only nil tax matters |
| Who | Individuals below 60, HUFs | Senior citizens 60+ |
Because a senior citizen only has to satisfy the nil-tax test, many more seniors qualify for Form 15H now that the Section 87A rebate makes tax nil up to ₹12,00,000 of income under the new regime. A person below 60 must clear the extra hurdle that the interest itself stays within the basic exemption limit, so 15G is harder to qualify for.
TDS thresholds — when the question even arises
The bank deducts TDS on interest only once it crosses the Section 194A threshold. For FY 2025-26 (raised by the Union Budget 2025):
| Interest source | Senior citizen | Others |
|---|---|---|
| Banks, co-operative banks, post office deposits | ₹1,00,000 | ₹50,000 |
| Other interest (e.g. company deposits, bonds) | ₹10,000 | |
If your interest from a payer is below the applicable threshold, no TDS is deducted and you may not need the form at all for that payer. Above it, TDS applies unless a valid 15G/15H is on file.
Where you can use Form 15G / 15H
- Bank, co-operative bank and post office fixed and recurring deposit interest.
- Company / NBFC deposits, bonds and debentures (interest under Section 194A/193).
- EPF premature withdrawal (TDS under Section 192A), where the withdrawal is taxable.
- Certain other incomes such as dividends, and income of specified funds — where the payer accepts the declaration.
They are not a general exemption — they simply stop TDS at source. You still declare the income in your ITR.
How to submit
- Submit to each payer separately (each bank, each branch, each company) at the start of the financial year or when the deposit is made — not after TDS has already been deducted.
- Many banks accept 15G/15H online through net banking; otherwise submit the physical form at the branch.
- PAN is mandatory. A missing or wrong PAN makes the declaration invalid and attracts TDS at 20%.
- The declaration is valid for one financial year and must be renewed each year.
Cautions
- Do not file if your income is actually taxable. A false declaration is an offence under Section 277, with prosecution and penalty.
- It is per-payer, per-year — giving it to one bank does not cover another, and it lapses at year-end.
- NRIs cannot file 15G/15H — a non-resident with Indian interest uses the treaty route (Tax Residency Certificate and Form 10F) to seek a lower rate.
- Already deducted TDS is not reversed by a late form — you would claim it back as a refund in your ITR.
Frequently asked questions
What is the difference between Form 15G and Form 15H?
Form 15H is for resident senior citizens aged 60 and above and has a single condition — that your estimated tax for the year is nil. Form 15G is for resident individuals below 60 (and HUFs) and has two conditions — nil tax and that the interest income for the declaration does not exceed the basic exemption limit.
Can a senior citizen with income up to ₹12 lakh file Form 15H?
Potentially yes. Form 15H only requires that your final tax is nil. Under the new regime the Section 87A rebate makes tax nil up to ₹12,00,000 of total income, so a resident senior whose tax genuinely works out to nil can file 15H. Be careful: if any part of your income (such as certain capital gains) is taxable and not covered by the rebate, the declaration would be invalid.
Is PAN mandatory for Form 15G/15H?
Yes. Without a valid PAN the declaration is invalid and the payer must deduct TDS at 20%. Always ensure your PAN is correct and linked with Aadhaar.
Can an NRI submit Form 15G or 15H?
No. Both forms are only for residents. A non-resident earning Indian interest cannot use them and should instead rely on the applicable tax treaty, supported by a Tax Residency Certificate and Form 10F, to claim a reduced TDS rate.
When should I submit the form?
At the beginning of the financial year, or when you open the deposit — before any TDS is deducted. It is valid for that financial year only and must be given afresh to each payer every year.
What happens if I forget and TDS is deducted?
A form submitted after deduction does not reverse the TDS already taken. You claim that TDS as a credit in your income tax return and receive it back as a refund if your income is not taxable.
Do I have to submit it to every bank separately?
Yes. The declaration is per-payer. If you have deposits with several banks or branches, submit a separate 15G/15H to each. Also remember to count interest across all of them when checking whether your total income stays below the taxable limit.
Does filing 15G/15H mean I do not report the interest in my ITR?
No. The form only stops TDS at source. You must still include the interest income in your income tax return; it simply will not have had tax deducted on it.
Are Forms 15G and 15H being replaced by Form 121?
Yes. Under the Income-tax Act 2025 and the Income-tax Rules 2026, Forms 15G and 15H are merged into a single Form 121, and Section 197A becomes Section 393(6), from the tax year 2026-27 (income on or after 1 April 2026). For FY 2025-26 you continue to use Forms 15G and 15H exactly as described here; the eligibility conditions are unchanged.