Form 15G and Form 15H: Eligibility, Difference & Process

Form 15G and Form 15H help individuals prevent TDS deductions on interest income if their total earnings are below the taxable limit. This blog covers eligibility criteria, differences between the forms, applicable transactions, and step-by-step filing instructions. Avoid unnecessary tax deductions by understanding when and how to submit these forms.

What Are Form 15G and Form 15H?

Form 15G and Form 15H help individuals avoid TDS on interest income if their total earnings are below the taxable limit. Form 15G is applicable for those below sixty years, HUFs, and trusts, while form 15H is for senior citizens. If the income of a senior citizen is less than ₹3,00,000 (or ₹5,00,000 for super seniors), he can claim exemption. However, in case total income exceeds the exemption limit, an ITR has to be filed.

Who Can File Form 15G and Form 15H

Form 15G and Form 15H are valid for one financial year and are required to be submitted at the commencement of the year for purposes of stopping TDS on the income interest.

Form 15G Eligibility:

• Open for those resident individuals under the age of 60, HUFs and trusts other than blocompanies and firms.
• Capped at total interest income below ₹2.5 lakh.log
• Has no final-grants tax liability for the financial year.
• A valid PAN is required.

Form 15H Eligibility

• For resident senior citizens (60 years and above).
• Applicable for any type of interest income.
• Has no final-grants tax liability.
• A valid PAN is required.

All these serve to ensure that no TDS deduction is incurred if total income is below the taxable limit.

Why 15G and 15H Are Required?

When interest payment for term deposits is credited to your account, banks and financial institutions will deduct TDS. However, if your total income is below the basic exemption limit and you have no tax liability, you can submit Form 15G or Form 15H to avoid TDS. These forms help individuals declare their income is non-taxable and will not be subject to TDS deductions on interest earnings.

 Note: TDS is not deducted from interest on savings accounts.

Difference Between Form 15G and Form 15H

While Form 15G and Form 15H serve the same purpose, their eligibility and applicability differ. Here’s a comparison:

Criteria	Form 15G	Form 15H
Who Can Apply	Individuals (excluding companies and firms)	Only resident individuals
Age Limit	Residents below 60 years	Senior citizens aged 60 years and above
Interest Income	Must be below the exemption limit and not taxable	May exceed the limit but should not be tax-chargeable
Legal Provision	Section 197A (1) and (1A)	Section 197A (1C)

Which Transactions Are Eligible to Submit Form 15G or Form 15H?

If the conditions of eligibility are satisfied with regards to specific income types, TDS deductions can be avoided with the usage of Form 15G and Form 15H.

Form 15G:

• Resident individuals below the age of 60 can file Form 15G.
• To be submitted in case the estimated interest income crosses ₹ 40,000 (₹ 50,000 for senior citizens) but is lower than the basic exemption limit.
• Applicable for interest even from fixed deposits, recurring deposits, post office deposits, EPF withdrawals (as long as the service duration isn’t more than 5 years), and all applicable rental income.

Form 15H: 

• A deposit with banks and post offices
• EPF withdrawals, wherever applicable
• Corporate bonds, etc.

Form 15H is specifically for those senior citizens who are aged 60 years and above. It must be submitted at the beginning of the financial year in order to avoid TDS deductions. If the forms are submitted within the first month of the financial year, no TDS will be deducted on the opposite income sources.

How to Submit Form 15G Online

To submit Form 15G for PF withdrawal without TDS deductions, follow these steps:

1. Get the Form – Download Form 15G from the EPFO website or any authentic source.
2. Fill in the Details – Write your name, address, PAN number, and expected annual income. Ensure it is correct.
3. Sign the Form – Sign the form in the presence of a witness so that your signature matches official records.
4. Attach a Copy of PAN – Attached self-attested copy of your PAN Card.
5. Submit the Form – Send completed Form 15G with your PF withdrawal request to the EPFO office or bank.
6. Keep a Copy – Retain a copy of the filled form for your records.

How to Submit Form 15H Online

Follow these steps to correctly fill and submit Form 15H, ensuring no TDS is deducted from your interest income:

1. Remember the declarant’s name: In full as in the PAN card and PAN No. exactly as per. 
2. Status: Choose whether the individual is an individual or part of a Hindu Undivided Family. 
3. Previous Year: Enter the financial year for which the form is being filled (i.e. 2023-24). 
4. Residential Status: That you are an Indian resident-the Form 15H can be submitted only by residents. 
5. Contact Details: Enter full address-street, city, state, pin code, an active email ID, and a phone number. 
6. Assessed to Tax Under the Income Tax Act: If the income in any year of the last six assessment years was above the taxable limit, choose “Yes,” otherwise choose “No.” 
7. Latest Assessment Year (if applicable): If “Yes” was selected above, mention the latest assessment year during which the income was taxable (e.g., 2021-22). 
8. Estimated Income for Declaration: Enter the total income (with interest income) exempted from TDS. 
9. Estimated Total Income for the Year: Calculate and give the expected earnings from all sources such as salary, interest, rental income, etc. 
10. Other Forms Submitted: If in the last year you submitted any other self-declaration forms, state how many forms were there, and what income was declared. 
11. Aggregate Income Declared via Form 15H: If an application of Form 15H was made for the previous year, please state the total income covered under it. 
12. Details of Income for Declaration: Describe the sources of income such as fixed deposit, recurring deposit, NSCs, life insurance policies, and section under which tax is deductible.
13. Signature- The form must be signed, and the signature given must verify the signature on all other official documents.

When Is the TDS Applicable?

If an employee has less than five years of employment here and wants to take out his EPF amount which is over ₹50,000, then

• the TDS will become 10% if the employee provides his PAN card but does not furnish Form 15G or 15H.
• the TDS will become 34.608% if the employee does not provide PAN card and does not submit Form 15G or 15H.

When Is the TDS Not Applicable?

TDS will not be deducted in the following circumstances:

• Where an employee transfers the EPF balance from one EPF account to the other.
• If the act of withdrawing the EPF is by the termination of the service of the employee on account of ill health or stoppage of work by the employer, or closure of business, project completion, or some other reasons beyond the control of the employee.
• Where an employee withdraws EPF after completing five years of service, which includes prior employment during that five years.
• Where the amount withdrawn is less than ₹50,000 and the employee has rendered service for a period of less than five years.
• Where the amount withdrawn is ₹50,000 or above and the employee has worked for less than five years, and submits Form 15G or 15H along with the PAN card.

Example to Understand Who Is Eligible to Submit Forms 15G and 15H

Criteria	Person 1	Person 2	Person 3	Person 4
Age	50 years	21 years	65 years	68 years
Salary	₹1,80,000	–	–	–
Pension	–	–	₹1,00,000	–
FD Interest Income	₹85,000	₹2,60,000	₹1,80,000	₹3,30,000
Total Income (Before Section 80 Deductions)	₹2,65,000	₹2,60,000	₹2,80,000	₹3,30,000
Deductions Under Section 80	₹45,000	₹30,000	₹10,000	₹55,000
Taxable Income	₹2,20,000	₹2,30,000	₹2,70,000	₹2,75,000
Basic Exemption Limit	₹2,50,000	₹2,50,000	₹3,00,000	₹3,00,000
Age Category	Below 60 years	Below 60 years	Above 60 years	Above 60 years
Tax on Total Income is Nil	Yes	Yes	Yes	Yes
Interest Income Below Basic Exemption Limit	Yes	No	N.A.	N.A.
Eligible to Submit Form 15G/15H	Yes, Form 15G	Cannot Submit	Yes, Form 15H	Yes, Form 15H

Form 15G Sample 

 

Form 15H Sample

 

What Is the Purpose of Forms 15G and 15H?

• Interest Income: Banks and financial institutions deduct TDS on interest earned from fixed deposits, recurring deposits, or other interest-bearing accounts. Submitting Form 15G/H can help prevent this deduction.
• Premature EPF Withdrawals: If an EPF withdrawal of ₹50,000 or more is made within five years of opening the account, TDS applies. Filing Form 15G/H can help avoid this deduction if eligibility conditions are met.
• Rental Income: TDS is applicable if rental income exceeds ₹2,40,000 annually. Eligible individuals can submit Form 15G or Form 15H to avoid TDS deductions.
• Commission earnings falling under the TDS ambit are held for agents who are actually earning more than ₹15,000 in commissions. They can file Forms 15G or 15H for TDS exemption requests if they qualify.
• Income above ₹5,000 from corporate bonds is subject to TDS. Form 15G or Form 15H can be filed for exemption from TDS deduction.
• Digital post offices may deduct TDS on the deposit interest. Form 15G/Form 15H can be submitted to avoid the TDS in such cases.
• In a financial year, if dividend income exceeds ₹5,000, TDS comes into effect. Submission of Form 15G/Form 15H will help claim exemption from the TDS amount or lessen the deduction.
• Payouts from life insurance policies not exempt under Section 10(10D) and exceeding ₹1,00,000 are subject to TDS at 5%. Thus, filing Form 15G or Form 15H will help mitigate or eliminate the TDS.

Eligibility of Form 15G/15H Submission Above Tax Exemption Limit

Form 15G and Form 15H cannot be submitted if your total interest income for the financial year surpasses the basic exemption limit. These forms are meant for individuals under the Income-tax Act whose total income shall become zero after deduction and exemptions. Hence, if your estimated income is more than the exemption limit, you will be ineligible to file Form 15G or Form 15H.

Which Details Must Be Provided on Forms 15G and 15H?

When completing Form 15G or Form 15H, certain essential details must be provided. These forms allow individuals to request an exemption from TDS on their interest income. The required information is categorized into two sections:

Details to Be Provided by the Individual (Declarant):

1. Name: Complete name exactly as listed in official records.
2. Residential Address: Current address along with State and Postal Code.
3. Contact Information: Email ID and phone numbers, if applicable both mobile and landline.
4. PAN Number: Permanent Account Number as reflected in the PAN cards.
5. Residential Status: Confirmation on residency status in India.
6. Financial Year: The financial year to which the form pertains.
7. Estimated Income: Expected sum total income for the entire financial year including interest earned.
8. Declaration: A statement that confirms the total income is less than taxable.

Details to Be Verified by the Authority:

• Verification: The receiving authority will review the form, confirm the provided details, and approve it with their signature.

Steps to Submit Form 15G/15H with Different Banks

You can easily submit Form 15G or Form 15H online from your home or office. Follow these steps to complete the submission:

Internet Banking:

• Connect to the bank via its Internet Banking page. 
• Head towards the Tax Services or Forms section. 
• Go for a selection that reads the submission of Form 15G or Form 15H. 
• Feed in the details required to be filled and upload whatever documents are needed along with the form submission. 
• Once so done, submit the form then save the confirmation that comes to you for records. 

Mobile Banking App:

• Launch a mobile application for banking of your bank. 
• Search for areas under Tax Services or Forms. 
• Choose the submission of Form 15G or Form 15H. 
• Fill the necessary information then submit electronically from anywhere. 
• Save for reference.

By submitting Form 15G or Form 15H through these online channels, you can prevent TDS deductions on interest earned from term deposits.

How to File Form 15G and 15H Online?

To file Form 15G and Form 15H online, deductors (such as banks) must use the Income Tax e-filing portal. The deductor must have a valid TAN (Tax Deduction and Collection Account Number) and be registered as a Tax Deductor & Collector on the platform.

Registration

If the deductor is a new person who is not registered, he has to register as a Tax Deductor & Collector- on the income tax e-filling site.

Preparation Process

• Every Form 15G or Form 15H submitted by the deductor shall be allotted a Unique Identification Number (UIN).
• This UIN is necessary for filing quarterly statements relating to these forms.
• Retention Requirement: Forms 15G and 15H must be kept on record for a minimum of 7 years.
• The UIN consists of 3 elements-sequence number, financial year, and TAN of the deductor. The physical declaration should refer to the assigned sequence number.

Filing Process

• Step 1: Upload Forms: The deductor must upload Form 15G and Form 15H quarterly on the e-filing portal. Even if there is no TDS deducted, the sequence number (Field ‘a’ of UIN) must be mentioned in the quarterly TDS statement.
• Step 2: Login to E-Filing Portal: Go to the official income tax e-filling website. Navigate to ‘e-File’ and select ‘Prepare & Submit Online Form (Other than ITR)’.
• Step 3: Prepare XML File: Generate the XML zip file through Form 15G/Form 15H (Consolidated).
• Step 4: Digital Signature Certificate (DSC): You will need a valid DSC for the digital signing and submission of the form. Generate the DSC signature file utilizing the utility on the e-filing portal.
• Step 5: Submit the Form

1. Log in using TAN at the Income Tax Portal.
2. Go to e-File > Submit Form 15G/15H.
3. Select Form Name (15G or 15H), Financial Year, Quarter, and Filing Type and click on Validate.
4. Attach the ZIP and Signature files generated from the DSC utility.
5. Click Upload; a confirmation message will pop up upon a successful submission. 

Following these steps will ensure compliance with the tax act, while online filing of Form 15G and Form 15H would be seamless.

How to Proceed If Form 15G/15H Is Not Submitted

If your bank has already deducted TDS because you didn’t submit Form 15G or 15H on time, don’t worry—there are ways to resolve the issue.

1. File Your ITR

The best way to get the deducted TDS back is to file your ITR and claim a refund. Refunds are with the Income Tax Department and not with the banks or the other deductors.

2. If You’re Late, Submit It Anyway

Even if late, submit Form 15G or Form 15H right away. This stops further TDS deductions for the rest of the financial year.

3. State TDS in Your ITR

When filing your ITR, write down the exact amount of TDS deducted by the bank. Correct reporting facilitates returns.

4. Store Everything

All submitted forms, TDS deductions, and bank statements should be kept as records. These may be needed during an income tax assessment.

5. Get Professional Assistance If Required

When in doubt, hire a tax consultant who can guide you through the process to ensure compliance with tax laws and proper filing of your returns. 

Following these steps will help you correct the error and stop any further TDS deductions on your interest income.

Conclusion 

Form 15G and Form 15H help individuals avoid TDS on interest income if their total earnings are below the taxable limit. Form 15G is for individuals below 60 years, HUFs, and trusts, while Form 15H applies to senior citizens. These forms must be submitted at the beginning of the financial year to ensure tax exemptions on applicable income sources. However, if total income exceeds the basic exemption limit, filing an ITR is mandatory. Understanding their eligibility, submission process, and impact on TDS deductions can help taxpayers manage their finances efficiently.

FAQs

Can a salaried person submit Form 15G?

No, salaried individuals cannot submit Form 15G as it is meant for individuals with no taxable income or whose total income is below the taxable limit.

Is Form 15G mandatory for FD?

No, Form 15G is not mandatory for fixed deposits. It is only required if you want to avoid TDS deduction and meet the eligibility criteria.

What is the difference between 15G and 15H?

Form 15G is for individuals below 60 years with income below the taxable limit, while Form 15H is for senior citizens meeting the same criteria.

Who issues Form 15G?

Banks and financial institutions provide Form 15G to eligible individuals for submission to avoid TDS deduction on interest income.

Who cannot submit Form 15G?

Individuals with taxable income, senior citizens (who must use Form 15H), and those exceeding the basic exemption limit cannot submit Form 15G.