If you earn an income in a financial year, such an income would be subject to income tax as specified under the Income Tax Act, 1961. You can earn an income from salary, business, capital gains, house property or from other sources. There is a concept of TDS, i.e. Tax Deducted on Source, on different incomes that you might earn. The entity paying the income deducts TDS on the said income and then pays the remaining amount to you. 

The most common instance is the interest income paid by the bank on your deposits. If the interest that you earn from bank deposits exceeds INR 40,000 in a financial year and you are aged below 60 years, TDS is deducted from the interest income. For senior citizens, however, if the interest income is more than INR 50,000 in a financial year, TDS would be deducted. 

However, if your income is not taxable, you can use Form 15G to eliminate the applicable TDS deduction.

What is Form 15G?

Before we look at what 15G is, let’s first understand how and when your income would become non-taxable. 

The Income Tax Act, 1961 offers some relief on tax liability. If your total taxable income is below INR 2.5 lakhs, you don’t have to pay any tax on it. Similarly, if your taxable income is more than INR 2.5 lakhs but less than INR 5 lakhs, you can claim a tax rebate which nullifies your tax liability. Furthermore, some incomes are allowed as tax-exempt incomes by the Income Tax Act, 1961. 

In the case of interest earned from fixed deposits, banks deduct TDS before crediting the interest income to your account. However, if your income is not taxable, you can use Form no. 15G to escape TDS deduction on interest income.

Form 15G, therefore, is a declaration made by the taxpayer, requesting the bank not to deduct any TDS from the interest income if it exceeds INR 40,000. The taxpayer declares that TDS should not be deducted because his taxable income is nil.

If you submit Form no. 15G to the bank, the bank would not deduct any TDS and pay the full interest income that you have earned.

Eligibility for using Form 15G

You can use Form 15G if the following eligibility parameters are met –

  • You are a resident Indian individual or a Hindu Undivided Family
  • Your age is less than 60 years
  • Your tax liability is nil
  • The total interest income that you have earned is below the threshold limit of the tax slab. In other words, your aggregate interest income should be less than INR 2.5 lakhs (threshold limit for the financial year 2021-22)

What is Form 15H?

Form 15H has a similar objective to Form 15G. However, it is applicable for senior citizen taxpayers. So, if you are aged 60 years or above, you would have to submit Form 15H to claim TDS exemption on your interest income if it exceeds INR 50,000. Your tax liability for the financial year should be nil so that you can become eligible to submit Form 15H.

Difference between Form 15G and Form 15H

Both Form 15G and Form 15H serve the same purpose. There are, however, a few differences between them. Such differences are as follows- 

Form 15G

Form 15H

You should be aged below 60 years to use Form 15G

You should be aged 60 years or above to use Form 15H

Hindu Undivided Families can also use Form 15G

Form 15H is not available for Hindu Undivided Families

The total interest income should be below INR 2.5 lakhs

There is no such condition for Form 15H

The interest income should be more than INR 40,000

The interest income should be more than INR 50,000

Who can submit Form 15G and 15H?

Here are some common examples showing which taxpayers can submit Form no. 15G or Form 15H –

Example 1

Age of the taxpayer (Indian Resident)

40 years

Income from salary 

INR 3.5 lakhs

Income from FD interest 

INR 1.5 lakhs

Total taxable income

INR 5 lakhs

Less: Deductions under Section 80C

INR 1.5 lakhs

Less: Deductions under Section 80D

INR 50,000

Total taxable income

INR 3 lakhs

Tax payable 

5% of income exceeding INR 2.5 lakhs 

= 5% of INR 50,000

= INR 2500

Less: Tax rebate under Section 87A

INR 2500

Tax payable

Nil

Let’s see if the taxpayer is eligible to submit Form 15G –

Resident Indian taxpayer

Yes 

Age below 60 years

Yes

Tax liability is nil

Yes

Total interest income is below the threshold limit of INR 2.5 lakhs 

Yes

Since the taxpayer meets the eligibility conditions, he can submit Form 15G and claim TDS exemption.

Example 2

Age of the taxpayer (Indian Resident)

45 years

Income from salary 

INR 7 lakhs

Income from FD interest 

INR 1 lakhs

Total taxable income

INR 8 lakhs

Less: Deductions under Section 80C

INR 1.5 lakhs

Less: Deductions under Section 80D

INR 50,000

Total taxable income

INR 6 lakhs

Tax payable 

12500 + 10% of income exceeding INR 5 lakhs

= 12500 + 10% of 1 lakh

= 12500 + 10000

= INR 22,500

Let’s see if the taxpayer is eligible to submit Form 15G –

Resident Indian taxpayer

Yes 

Age below 60 years

Yes

Tax liability is nil

No

Total interest income is below the threshold limit of INR 2.5 lakhs 

Yes

Since one of the parameters is not fulfilled, the taxpayer cannot submit Form 15G. TDS would be deducted from his interest income before it is paid to him.

Example 3

Age of the taxpayer (Indian Resident)

50 years

Income from business 

INR 2.5 lakhs

Income from FD interest 

INR 3 lakhs

Total taxable income

INR 5.5 lakhs

Less: Deductions under Section 80C

INR 1.5 lakhs

Less: Deductions under Section 80D

INR 50,000

Total taxable income

INR 3.5 lakhs

Tax payable 

5% of the income exceeding INR 2.5 lakhs

= 5% of 1 lakh

= INR 5000

Less: Rebate under Section 87A

INR 5000

Tax liability 

Nil

Let’s see if the taxpayer is eligible to submit Form 15G –

Resident Indian taxpayer

Yes 

Age below 60 years

Yes

Tax liability is nil

Yes 

Total interest income is below the threshold limit of INR 2.5 lakhs 

No

Since the interest income is above the threshold limit, one eligibility condition is not fulfilled. As such, the taxpayer cannot submit Form 15G.

Example 4

Age of the taxpayer (Indian Resident)

62 years

Income from profession

INR 2.5 lakhs

Income from FD interest 

INR 2 lakhs

Total taxable income

INR 4.5 lakhs

Less: Deductions under Section 80C

INR 1.5 lakhs

Less: Deductions under Section 80D

INR 50,000

Total taxable income

INR 2.5 lakhs

Tax payable 

Nil (Income is within the threshold limit of INR 2.5 lakhs)

Let’s see if the taxpayer is eligible to submit Form 15H –

Resident Indian taxpayer

Yes 

Age 60 years and above

Yes

Tax liability is nil

Yes 

The senior citizen taxpayer can submit Form 15H to claim TDS exemption. 

How to get Form 15G?

You can source Form 15G from multiple places which include the following –

  • From your bank’s branch
  • From the website of your bank
  • From the website of EPFO
  • From the website of the Income Tax Department

When to submit Form 15G or Form 15H?

You should submit Form 15G or Form 15H only when you are eligible to do the same. Else, even if you submit the forms, they would not be accepted by the bank. Moreover, the forms are valid for only one financial year. To claim TDS exemption for each financial year you should submit the form, annually, before the close of the financial year. Ideally, the form should be submitted at the start of every financial year to inform the bank not to deduct TDS income from the interest accruing to you in that financial year.

What would happen if you forget to submit Form 15G or Form 15H?

If you forget to submit Form 15G or Form 15H, there would be no penalty or fine imposed on you. The bank would, simply, deduct the TDS from the interest income that is credited to your account. If your income is not taxable, you can file your income tax returns and claim a refund of the TDS deducted and deposited by the bank on your behalf.

Alternatively, if you forget to submit the forms at the start of the year, you can do so within the financial year if the interest income is due. If banks pay interests quarterly, interest for the quarters when the forms were not submitted would attract TDS deductions. However, for the next quarter, after you submit the form, TDS would not be deducted. The TDS deducted earlier can be claimed as a refund by filing your income tax returns.

Submission of Form 15G or Form 15H apart from banks

Though it is common knowledge that you need to submit Form 15G or Form 15H to banks to avoid them deducting TDS from your interest income, there are other places too wherein the forms are used. These places include the following –

  • For EPS withdrawals

    If you withdraw from the EPF account and your tax liability on aggregate income, including the withdrawn amount, is nil, you can submit Form 15G or Form 15H to avoid TDS deductions. The rule for TDS in EPF withdrawals is as follows –

  • Rules for TDS on EPF withdrawals

    If you withdraw from your EPF account before completing 5 years of continuous service, and the withdrawn amount is more than INR 50,000, TDS would be applicable on such a withdrawal. This rule is contained under Section 192A of the Finance Act, 2015. TDS would be deducted @10% if the PAN Card is submitted. If not, the rate of the deduction would be 30%.

    When is TDS not applicable?

    There are instances when TDS on EPF withdrawal is not applicable even if the amount is more than INR 50,000 and you worked for less than 5 years. These instances are as follows –

    • If one EPF account is transferred to another
    • Termination of service due to a disability, bad health or death of the employee
    • Termination of service because the employer winds up business, or the project is completed or for any reason which is beyond the employee’s control
    • If the withdrawal is done after the completion of 5 years
    • If the withdrawal is done before completing 5 years of service but the amount of withdrawal is below INR 50,000
  • For income earned from corporate bonds

    If you invest in corporate bonds and you earn an income of more than INR 5000, TDS would be deducted from such income. To avoid TDS deduction, you can submit Form 15G or Form 15H.

  • For insurance proceeds

    If the maturity proceeds of your insurance policy are more than INR 1 lakh and the premium that you paid was more than 10% of the sum insured, the maturity proceeds are taxable. TDS is also deducted on the income earned from the life insurance policy @5%. If you have not submitted your PAN Card, the TDS rate increases to 20%.

    If, however, your taxable liability is nil, you can submit Form 15G or Form 15H to claim TDS exemption from the maturity amount.

  • For post office deposits 

    Even if you hold fixed deposits in a post office, TDS would be deducted from the interest income if it exceeds INR 40,000 (if you are aged below 60 years) or INR 50,000 (if you are a senior citizen). In such cases, you can submit Form 15G or Form 15H to claim TDS exemption.

  • For rental income

    If you have let out a property on rent and the rental income that you earn in a financial year exceeds INR 2.4 lakhs, you can submit Form 15G or 15H to inform the tenant not to deduct TDS from the rent paid since your tax liability is nil.

  • For insurance commissions

    If you are an insurance agent and you earn a commission of more than INR 15,000 in a year, TDS would be deducted from such commissions by the insurance company. You can submit Form 15G or Form 15H to the insurer to claim relief from TDS deductions if your tax liability for the financial year is nil.

Things to know for TDS deductors

If you are liable to deduct TDS from any income that you pay to another, here are some important things that you should know about –

  • You should allot a Unique Identification Number (UIN) to every taxpayer who submits Form 15G and 15H
  • You are required to file a statement of these forms with the Income Tax department
  • You should retain the forms for up to 7 financial years

Components of Form 15G

Form 15G consists of two parts– Part I and Part II. The components of both these parts are as follows:

  • Part I 
    • Name of the taxpayer filing the declaration in the form
    • PAN number of the taxpayer
    • Status of the taxpayer – individual or HUF
    • Financial year
    • Residential status of the taxpayer
    • Address of the taxpayer
    • Contact information 
    • Details of the income on which TDS is supposed to be deducted with relevant income tax sections
    • Self-declaration stating the accuracy of the information provided 
  • Part II
    • Name of the individual or entity responsible for deducting the TDS from the income
    • Unique Identification Number
    • Address of the individual or the entity deducting the TDS
    • PAN and TAN card number of the individual or the entity deducting the TDS
    • Contact details
    • Date on which the declaration has been received
    • Date on which the income has been paid or credited
    • The amount of income paid

How to fill Form 15G?

You can fill Form 15G and 15H manually or online. Here are some tips on how to fill Form 15G or Form 15H –

  • In the section that asks whether you were assessed for tax under the provisions of the Income Tax Act, 1961, state ‘Yes’ if your taxable income was above the threshold limit in any year in the last 6 years. Moreover, the latest assessment year when your taxable income was above the assessment limit should also be mentioned
  • Under the segment where the income is asked where the TDS is supposed to be made, aggregate all the incomes under which you are claiming TDS exemption
  • The estimated aggregate income of the last year should be mentioned in the relevant field
  • The total number of Form 15G or Form 15H that you are filing should be specified
  • The aggregate income for which you are filing different Form 15G or 15H should be mentioned
  • Signature is also needed at the end of the form after the declaration is made

Alternative ways to save tax

Besides saving on TDS deductions, you can minimize your tax liability by investing in different types of tax-saving avenues. These avenues and the saving in taxes are listed below –

Tax saving avenues

How can you save tax?

Life insurance

  • Premiums, up to 10% of the sum insured, are allowed as a deduction under Section 80C. The limit of deduction is INR 1.5 lakhs
  • Maturity proceeds are tax-free if the premium is up to 10% of the sum insured. In the case of ULIPs, maturity proceeds are tax-free if the aggregate ULIP premium is up to INR 2.5 lakhs
  • Death benefit is tax-free

Health insurance

  • Deduction under Section 80D for the premium paid for a health plan. The limit is INR 25,000 (if you are below 60 years) or INR 50,000 (if you are 60 years and above)
  • If you buy a policy for your parents, you can claim an additional deduction of INR 25,000 or INR 50,000 depending on their age 

Home loan

  • Principal paid is tax-free under Section 80C up to INR 1.5 lakhs
  • Interest paid is tax-free under Section 24(b) and 80EEA (if eligible) up to INR 3.5 lakhs 

ELSS 

  • Investments are tax-free up to INR 1.5 lakhs under Section 80C
  • Returns up to INR 1 lakh are tax-free 

NPS 

  • Investments are tax-free up to INR 2 lakhs under Sections 80CCD (1) and 80CCD (1B)
  • On maturity, 60% of the withdrawn corpus is tax-free

FAQ’s

No, the facility of submitting Form 15G or Form 15H is available only to resident Indian taxpayers. NRIs cannot claim TDS exemption on the FDs that they have in India. If the interest income on such FDs exceeds INR 40,000 or INR 50,000 in a financial year, TDS would be applicable on such income.


Yes, the PAN card is a must for submitting Form 15G to the bank or any other entity for claiming a TDS relief.


The interest earned from the FD of your minor child would be clubbed with your income. As such, you cannot submit Form 15G on the behalf of your child. TDS would be deducted from the interest income earned from your child’s FD if it exceeds INR 40,000 in a financial year. The deduction would be in your name.


When ascertaining the aggregate interest earned, the interest earned from all the branches of the bank is taken into account. Since you have two deposits and the aggregate interest income is INR 50,000, TDS would be applicable if you are aged below 60 years.


Yes, many banks and post offices allow you to fill and submit Form 15G and 15H online through their website.