Form 15G and 15H 2026: Save TDS on Interest Income

Are you losing money to TDS deductions on your fixed deposit interest every quarter? If your total income is below the taxable limit, you shouldn't be paying any tax—yet banks automatically deduct 10% TDS on interest income exceeding ₹40,000 (₹50,000 for senior citizens). The solution? Form 15G and Form 15H. These simple declarations can help you receive your full interest income without any TDS deduction. In this comprehensive guide, we'll explain everything about Form 15G, Form 15H, eligibility criteria, submission process, and how to maximize your savings in FY 2026-27.

What Are Form 15G and Form 15H?

Form 15G and Form 15H are self-declaration forms submitted to banks and financial institutions under Section 197A of the Income Tax Act, 1961. These forms inform the bank that your estimated total income for the financial year is below the basic exemption limit, and therefore, no tax is payable. Consequently, the bank should not deduct TDS on interest income paid to you.

Without these forms, banks are mandated to deduct TDS at 10% on interest income exceeding ₹40,000 in a financial year (₹50,000 for senior citizens aged 60 years and above) as per Section 194A. For those without PAN, the TDS rate increases to 20%. By submitting Form 15G or 15H, you prevent this deduction and receive your full interest amount, improving your cash flow throughout the year.

Legal Provisions: Section 197A Explained

Section 197A of the Income Tax Act provides the statutory backing for Form 15G and Form 15H. This section allows individuals to furnish a declaration in prescribed forms to the person responsible for paying income (in this case, banks), stating that the tax on their estimated total income will be nil. The deductor (bank) can then avoid deducting TDS based on this declaration. However, the declaration must be genuine, and any false declaration can attract penalties under Section 277 of the Act, including imprisonment up to seven years and fines.

Eligibility Criteria for Form 15G and Form 15H in FY 2026-27

Understanding eligibility is crucial before submitting these forms. Here's a detailed breakdown:

Form 15G Eligibility

Form 15G can be submitted by:

• Individual taxpayers below 60 years of age: This includes both residents and Hindu Undivided Families (HUFs)
• Total income threshold: Your estimated total income for FY 2026-27 (Assessment Year 2027-28) should be below the basic exemption limit of ₹2,50,000 under the old tax regime or ₹3,00,000 under the new tax regime
• Tax liability: After claiming all applicable deductions under Chapter VI-A (like Section 80C, 80D, etc.) in the old regime, your total tax liability should be nil
• Income inclusions: Interest income from FDs, savings accounts, recurring deposits, and other sources must be included in total income calculation

Important: NRIs (Non-Resident Indians) cannot submit Form 15G or Form 15H as these forms are only for resident Indians.

Form 15H Eligibility

Form 15H is exclusively for senior citizens and has slightly relaxed conditions:

• Age requirement: Individual must be 60 years or above during the financial year
• Total income threshold: Estimated total income should be below ₹3,00,000 for FY 2026-27 under the old regime (with Section 87A rebate applicable up to ₹5,00,000) or ₹3,00,000 under the new tax regime
• Tax liability: After claiming deductions like Section 80TTB (₹50,000 deduction on interest income for senior citizens), 80D (medical insurance), and Section 87A rebate, total tax should be nil
• Resident status: Must be a resident Indian

The key advantage for senior citizens is the additional ₹50,000 deduction under Section 80TTB specifically for interest income, which significantly increases the effective threshold before tax becomes payable.

When Should You Submit Form 15G or Form 15H?

Timing is critical for maximum benefit. Here's when to submit:

• Start of financial year: Submit in April 2026 for FY 2026-27 to ensure no TDS is deducted from the first interest credit itself
• Before interest credit: If you missed April, submit before the quarterly interest credit dates (typically June 30, September 30, December 31, and March 31)
• New account opening: Submit immediately when opening a new fixed deposit or account that will earn interest
• Annual renewal: Remember, these forms are valid for one financial year only. Even if you submitted last year, you must submit fresh forms for FY 2026-27

If you submit mid-year, banks may still deduct TDS for quarters already passed. However, you can claim this as a refund when filing your Income Tax Return using the Income Tax Calculator to compute your actual tax liability.

Step-by-Step Guide: How to Submit Form 15G and Form 15H Online

Most banks now offer digital submission. Here's the process:

Online Submission Through Net Banking

1. Login to net banking: Access your bank's internet banking portal
2. Navigate to forms section: Look for 'Service Requests', 'Tax Forms', or 'Form 15G/15H' under accounts section
3. Select the form: Choose Form 15G (if below 60) or Form 15H (if senior citizen)
4. Fill mandatory details:
   • PAN (mandatory field)
   • Assessment year: Select AY 2027-28 for FY 2026-27
   • Estimated total income for the year
   • Estimated aggregate interest income from the bank
   • Previous year's income details
5. Declaration: Check the declaration box confirming all information is true
6. Submit and save acknowledgment: Keep the reference number or PDF acknowledgment for records

Offline Submission

For banks requiring physical submission:

1. Download Form 15G or Form 15H from the Income Tax Department website or your bank's website
2. Fill all fields accurately with blue/black pen
3. Sign the form (digital signature not accepted for physical forms)
4. Attach self-attested PAN card copy
5. Submit at your bank branch and collect acknowledgment receipt

Pro tip: Submit separate forms for each bank where you hold deposits. One form per institution per financial year is required.

Real-Life Examples: Calculating Your Eligibility

Let's understand with practical scenarios:

Example 1: Young Professional (Form 15G)

Rahul, 28 years old, has the following income for FY 2026-27:

• Salary: ₹1,80,000
• Interest from FDs: ₹45,000
• Savings account interest: ₹8,000
• Total Income: ₹2,33,000

Under the old tax regime with ₹2,50,000 basic exemption, Rahul's income is below the threshold. He should submit Form 15G to all his banks to prevent TDS deduction on the ₹45,000 FD interest. Without Form 15G, banks would deduct ₹4,500 as TDS (10% of ₹45,000), which he would need to claim as refund later.

Example 2: Senior Citizen (Form 15H)

Mrs. Sharma, 67 years old, has the following income for FY 2026-27:

• Pension: ₹2,40,000
• Interest from FDs and savings: ₹85,000
• Gross Total Income: ₹3,25,000
• Less: Section 80TTB deduction: ₹50,000 (interest income deduction for seniors)
• Less: Standard deduction on pension: ₹50,000
• Net Taxable Income: ₹2,25,000

Since her net taxable income is ₹2,25,000 (below ₹3,00,000 basic exemption for senior citizens), and she can also claim Section 87A rebate if needed, Mrs. Sharma has zero tax liability. She should submit Form 15H to prevent TDS on ₹85,000 interest income, saving ₹8,500 in unnecessary TDS deduction.

Form 15G vs Form 15H: Detailed Comparison

Parameter	Form 15G	Form 15H
Eligible Age Group	Below 60 years	60 years and above (Senior Citizens)
Applicable Section	Section 197A(1)	Section 197A(1C)
Basic Exemption Limit	₹2,50,000 (old regime) / ₹3,00,000 (new regime)	₹3,00,000 (old regime with additional benefits)
TDS Threshold	₹40,000 interest per year	₹50,000 interest per year
Additional Deductions	Standard deductions under Chapter VI-A	Section 80TTB (₹50,000 on interest income)
Applicability	Individuals and HUFs	Individual senior citizens only
Validity Period	One financial year	One financial year
Submission Mode	Online/Offline to each bank	Online/Offline to each bank

Common Mistakes to Avoid When Submitting Form 15G or 15H

Many taxpayers make errors that lead to rejection or TDS deduction. Avoid these pitfalls:

1. Incorrect Income Estimation

Ensure you calculate your total income from ALL sources—salary, business, rental income, capital gains, and interest from all banks combined. Underestimating income can lead to false declaration penalties.

2. Missing PAN Details

PAN is mandatory for Form 15G and Form 15H submission. Forms without valid PAN will be rejected, and TDS will be deducted at 20%.

3. Not Submitting to All Banks

Each bank or financial institution requires a separate form. If you have FDs in three different banks, submit three separate forms.

4. Late Submission

Submitting after interest credit means TDS has already been deducted for that quarter. Submit in April for full-year benefit.

5. Wrong Assessment Year

For FY 2026-27, select Assessment Year 2027-28. Many taxpayers confuse these and select the wrong year, leading to form rejection.

6. Ignoring Form 26AS

Always verify your TDS credits in Form 26AS after submitting Form 15G/15H to ensure no TDS was deducted. Use the Form 26AS / TDS Fetch Tool to download and check your TDS statement regularly throughout the year.

What If You've Already Paid TDS? Claiming Refund

If TDS was deducted despite eligibility for exemption or before you could submit Form 15G/15H, don't worry—you can claim a full refund:

1. Verify TDS in Form 26AS: Check your Form 26AS or Annual Information Statement (AIS) to confirm TDS deducted by banks
2. File Income Tax Return: Even if your income is below taxable limit, file ITR-1 or ITR-2 for FY 2026-27
3. Claim TDS credit: The ITR form automatically fetches TDS from Form 26AS when you enter your PAN
4. Calculate tax liability: Use the Income Tax Calculator to confirm your tax liability is zero
5. Refund processing: The excess TDS will be refunded to your bank account within 2-4 months after ITR verification

Many taxpayers with nil tax liability don't file returns, losing thousands in TDS refunds annually. Always file your ITR before the July 31, 2027 deadline for AY 2027-28 to claim refunds.

Recent Updates and Changes for 2026

Stay updated with the latest changes affecting Form 15G and Form 15H in 2026:

Increased TDS Threshold for Senior Citizens

The TDS threshold for senior citizens remains at ₹50,000 for interest income from banks and post offices under Section 194A. This is higher than the ₹40,000 limit for non-senior citizens.

Digital Mandate

Most scheduled commercial banks and cooperative banks have made online submission mandatory for Form 15G and Form 15H to reduce paperwork and ensure faster processing. Check with your bank's net banking portal for digital submission options.

PAN-Aadhaar Linking

Ensure your PAN is linked with Aadhaar as per CBDT mandate. Banks may reject Form 15G/15H submissions if your PAN is not linked to Aadhaar, as inactive PANs cannot be used for tax purposes.

Form 26AS to AIS Transition

The Annual Information Statement (AIS) has replaced Form 26AS as the comprehensive tax statement. It includes TDS details, interest income, and other financial transactions. Access AIS through the Income Tax e-filing portal to verify your interest income and TDS credits.

Who Should NOT Submit Form 15G or Form 15H?

These forms are not suitable for everyone. Do NOT submit if:

• Income above exemption limit: If your total income exceeds ₹2,50,000 (or ₹3,00,000 for seniors), you have tax liability and should allow TDS deduction
• Tax liability exists: Even if income is below exemption, if you have tax liability after considering all income sources, don't submit these forms
• Non-resident status: NRIs cannot use Form 15G or Form 15H; they must pay TDS as per DTAA rates
• Corporate entities: Companies, firms, and trusts cannot submit these forms—only individuals and HUFs
• Uncertain income: If you expect income fluctuations (like variable business income or capital gains), be cautious. False declarations attract penalties

When in doubt, it's better to let TDS be deducted and claim refund later through ITR filing rather than risk penalties for false declarations.

Form 15G/15H for Different Income Sources

These forms apply to multiple income sources where TDS is deductible:

Fixed Deposits (FDs)

Banks deduct TDS at 10% on FD interest exceeding ₹40,000/₹50,000. Submit Form 15G/15H at the start of FY to prevent quarterly TDS deduction.

Savings Account Interest

Though savings interest up to ₹10,000 is exempt under Section 80TTA (₹50,000 under Section 80TTB for seniors), if your total savings interest exceeds this, banks may deduct TDS. Form 15G/15H prevents this if you're below the taxable limit.

Recurring Deposits (RDs)

RD interest is also subject to TDS. Submit forms to prevent deduction.

Post Office Deposits

Time deposits, monthly income schemes, and senior citizen savings schemes in post offices require Form 15G/15H submission if interest crosses TDS thresholds.

Corporate Bonds and Debentures

Interest from listed bonds and debentures attracts TDS under Section 193. Form 15G/15H can be submitted to bond issuers to prevent TDS.

For each income source, submit separate forms to respective deductors to ensure comprehensive TDS prevention across all your investments.

Frequently Asked Questions (FAQs)

What is the difference between Form 15G and Form 15H?

Form 15G is for individuals below 60 years whose total income is below the basic exemption limit, while Form 15H is specifically for senior citizens aged 60 years and above. Both forms serve the same purpose of preventing TDS deduction on interest income under Section 197A, but Form 15H has a higher threshold of ₹50,000 for interest from one bank compared to regular limits, and senior citizens can use it even if their total income exceeds basic exemption in certain cases.

Can I submit Form 15G or 15H for multiple banks?

Yes, you must submit separate Form 15G or Form 15H to each bank, post office, or financial institution where you hold deposits. Each institution requires an individual declaration. However, you need to ensure that your total income from all sources, including interest from all banks combined, remains below the taxable limit. Making false declarations can lead to penalties under Section 277 of the Income Tax Act, including imprisonment and fines.

What is the validity period of Form 15G and Form 15H?

Form 15G and Form 15H are valid for one financial year only. You need to submit fresh forms at the beginning of each financial year, typically in April. For FY 2026-27, forms submitted in April 2026 will remain valid until March 31, 2027. Some banks allow mid-year submissions, but it's best to submit before the first interest credit to avoid any TDS deduction for that quarter.

Can Form 15G or 15H be submitted online?

Yes, most banks now allow online submission of Form 15G and Form 15H through their internet banking portals or mobile apps. You can fill the form digitally, provide your PAN details, and submit electronically without visiting the branch. Some banks also accept forms via email. However, certain institutions may still require physical submission with signatures. The government's TRACES portal also facilitates centralized TDS management for taxpayers to track their Form 15G/15H submissions.

What happens if TDS is deducted despite submitting Form 15G or 15H?

If TDS is deducted despite valid Form 15G or 15H submission, you can claim a refund while filing your Income Tax Return. The deducted TDS will appear in your Form 26AS, and you can claim it as tax paid. Use the TaxFetch Form 26AS tool to verify your TDS credits. When filing ITR, the excess TDS will be refunded by the Income Tax Department after processing your return, typically within 2-4 months of ITR verification.

Conclusion: Maximize Your Interest Income in 2026

Form 15G and Form 15H are powerful tools to prevent unnecessary TDS deduction on your interest income if you fall below the taxable income threshold. By submitting these forms at the start of FY 2026-27, you can improve your cash flow, avoid the hassle of claiming refunds, and ensure your hard-earned interest reaches you in full. Remember to submit separate forms to each bank, verify your eligibility carefully, and keep track of your TDS credits in Form 26AS. Whether you're a young professional with limited income or a senior citizen living on pension and interest, these forms can save you thousands of rupees annually. Calculate your exact tax liability using TaxFetch Tools and make informed decisions about your tax planning today.