What is Form 15G and Form 15H?

Form 15G and 15H are self-declarations forms filed with the banks or financial institutions who, deduct TDS on the interest income earned/accrued to not deduct TDS on the interest income.
Normally, people have a myth that interest on fixed deposits is calculated / deducted at the time of maturity. Instead, it is calculated and interest on the same is deducted periodically which reflects in your Form 26AS.


Who can file Form 15G and Form 15H & When?

These forms need to be filed every year by the assessee. Forms can be submitted by -

Form 15G

  • Any Resident Indian Individual( below 60 years of age) or HUF
  • Having interest income from FD below the basic exemption limits of Rs 2.5 lakhs and
  • No final tax liability
  • Having PAN

Form 15H

  • Any Individual aged 60 years or above namely, Resident Senior Citizens
  • Having any Interest Income. I.e. whether the interest earned is below basic exemption limit of 3 lakhs or not, you can still file Form 15H.
  • But, The final tax liability shall be NIL
  • Must have a PAN

What is the need for Form 15G and Form 15H?

Banks or public financial institutions while crediting in your account periodic interest deduct TDS on term deposits. In case of interest earned on saving bank accounts,it shall be offered for taxation as income from other sources. But, there is no deduction of tax for the same. Tax Benefits on interest income are as below:

  • If, you are below the age of 60, i.e. not senior citizen Any interest earned by you on savings account for the financial year can be claimed deduction of upto Rs 10,000 under section 80TTA.
  • But, if you are aged 60 or above The income tax departments provides you deduction for Rs 50,000 u/s 80TTB to be availed both on saving bank account interest and FD interests. (As per Finance Act 2018)

So for non senior citizen cases if you have any interest income from term or recurring deposits below basic exemption limit of 2.5 lakhs, you can opt Form 15G to avoid deduction of Tax by the authorities.

Note: No TDS on saving bank account is deducted by banks and financial institutions.


What are the differences between Form 15G and Form 15H?

You might be tangled among the applicability and effectiveness of both these forms. Both the forms are similar yet distinguished in following ways

Form 15G Form 15H
Applicable on Form 15G can be submitted by both Individuals and HUF Form 15H can be submitted only by Individuals
Age Limit Applies to residents below 60 years of age Applies to resident senior citizen aged 60 years and above
Interest Income shall fall below basic exemption limit Interest income shall be below basic exemption limit not chargeable to tax Interest income may or may not be below basic exemption limit not chargeable to tax
Provision under Income Tax Act As per Section 197A (1) and (1A) As per Section 197A (1C)

Examples relating to Form 15G and Form 15H

Lets understand the insights about Form 15G and Form 15H, more transparently with the help of examples below

Example to understand Form 15G

Mr Aditya Mr Shekhar Mrs Bhalla
Aged 45 55 65
Salary Income 2,00,000 1,00,000 1,00,000
Income from Interest on various Fixed deposits 60,000 2,80,000 2,70,000
Gross Total Income 2,60,000 3,80,000 3,70,000
Deductions u/s 80C 1,20,000 1,50,000 2,00,000
Taxable income after Chapter VI -A deductions 1,40,000 2,30,000 1,70,000
Basic exemption Limit 2,50,000 2,50,000 3,00,000
Net taxable income i.e Taxable Income NIL NIL NIL
Applicability of Form 15G YES NO NO
Reasons Form 15G is applicable because
a. Mr Aditya is not a senior citizen
b. Has interest income below taxable limit
c. Final Tax Liability is NIL
Form 15G is NOT applicable because
Although the tax liability is NIL but interest income exceeds basic exemption limit.
Form 15G is NOT applicable because
Mrs Bhalla is a senior citizen and in this case form 15H shall apply

Example to understand Form 15H

Mr Sharma Mr Verma Mrs Chopra
Aged 65 75 55
Salary/ Pension Income 1,50,000 1,00,000 2,00,000
Income from Interest on various Fixed deposits 2,80,000 3,20,000 1,20,000
Gross Total Income 4,30,000 4,20,000 3,20,000
Deductions u/s 80 1,50,000 1,50,000 1,50,000
Taxable income after Chapter VI -A deductions 2,80,000 2,70,000 1,70,000
Basic exemption Limit 3,00,000 3,00,000 2,50,000
Net taxable income i.e Taxable Income - Basic Exemption Limit NIL NIL NIL
Applicability of Form 15H YES YES NO
Reasons Form 15H is applicable because
a. Mr Sharma is a senior citizen
b. Final tax liability is NIL
Form 15H is applicable because
a. Mr Sharma is a senior citizen
b. Final tax liability is NIL
Form 15H is NOT applicable because
Mrs Chopra is NOT a senior citizen and in this case Form 15G shall apply

Note : For Form 15H we need not check whether the interest income falls below the threshold limit ( maximum amount not chargeable to tax) or not.


Form 15G or Form 15H can be submitted for which transactions?

Forms 15G / H can be submitted for these transactions namely

  • Interest Income - To banks and financial institutions deducting TDS on interest income.
  • Premature EPF Withdrawals - Any amount withdrawn in excess of Rs 50,000 before 5 years from date of opening the account is liable for TDS. But the compliances can be avoided on furnishing Form 15G/H
  • On Rental income - If rental income is Rs 1,80,000 or more during the year and resultantly tax is deductible, you may file Form 15G or Form 15H as per the applicability.
  • Insurance Commission - Any insurance agent earning commision of at least Rs 15,000 is liable to TDS and can validly file these forms

What are the Precautions which needs to be taken care of while filing Form 15G/H?

Some precautions if taken care of during the complete process will ease out the things. An illustrative list of such precautions could be drawn as under

  • These forms are needed to be filed every year
  • Make sure you obtain a copy of acknowledgement to work as a proof in case of dispute with bank in future
  • PAN shall be quoted so as to avoid TDS deduction at higher rate of 20%
  • If your bank/ PFI do not provide for online facility to submit the Form yet. Do not wait, go and submit it physically as sooner as possible.

Can Form 15G /15H be submitted even if your total income exceeds tax-exemption level?

Form 15G/15H can be submitted even if your tala income exceeds INR 5 lakh which is tax exempt level. The Income Tax Act states that Form 15G/15H can be issued to those who provides an estimate of their total income on which tax is zero and total income includes deductions and allowances.


How to File Form 15G and 15H online?

The process for online submission of Form 15G and 15H has been much simplified since its introduction in year 2015. Now users have option to opt for physical submission of form or just login with internet banking credentials and submit these Forms. In addition to this some banks like HDFC do not even lay requirement to opt for internet banking to file form 15G / 15H. Learn how

ICICI Bank ICICI prescribes following steps for online furnishing of Form 15G/ 15H

  • Log in to ICICI Bank Internet Banking
  • From column on top > Payments and Transfer > Select Tax Centre
  • Select Form 15G/H > update
  • Fill up necessary details
  • Click Submit
  • On Request Confirmation page , recheck details and > click submit
  • Don't forget to download the Acknowledgment
  • Save Service Request number for your future reference.

Or

The other option to file Form 15G / H to ICICI bank is through Insta Banking Kiosk:

  • At the venue access using debit card or Internet Banking details
  • Select Form 15G/ 15H
  • Choose your account number
  • Fill the required details
  • Submit request

SBI Bank

  • Login using internet banking credentials
  • Select E-Service tab
  • A link can be traced on the left to generate Form 15G/H
  • On the right 15G / H forms will show up
  • Fill up necessary details and click on submit

HDFC Bank

  • Go to 'Accounts' tab > select 'Request' Section > Choose 'Form 15G/H'
  • View FD Details
  • Click Confirm
  • View and save the e acknowledgement for future reference

OR Click on the links below for Submitting Form 15G and 15H respectively, fill the details and submit to HDFC bank online.

Form 15G   Form 15H


What are the informations required to be furnished in Form 15G and Form 15H?

Some basic informations like Name of assessee, address, communication details and estimated income etc together with verification and declaration shall be signed and submitted. The forms are divided into two parts as shown below. The first part needs to be filled by you and the second one by the authority you are submitting respective form to. Both these forms seem to be identical but there is an important difference among two. Form 15H has an additional column for Date of Birth to keep a track apparently that, you can furnish this form only if you are aged 60 years or above. For more details find the specimen copies of both the forms attached hereto below.

Form 15G
Form 15H

Frequently Asked Questions

Q- Can NRI submit Form 15G/H?

No NRI cannot submit these forms.


Q- What is the Penalty for wrong Declaration?

Any wrong declarations made shall attract prosecution and fine under section 277 of the Income Tax Act 1961. In case tax sought to be evaded amount to

  • Rs 25 lakhs or more imprisonment term shall not be less than six months but which may extend to 7 years years and fine
  • In other cases imprisonment ranging from 3 months to 2 years with fine.

Q- If I wish to avoid TDS then can I file Form 15G/H?

You can file these forms only if your total tax liability is NIL and all other eligibility conditions as specified above are successfully met.


Q- Are Forms 15G or Form 15H an alternate to ITR?

No, the forms are no alternate to filing your Income Tax Return. Even if you have made disclosure about your income in these forms you need to comply with /filing requirements of IT return separately.


Q- What if i have tax payable after filing form 15G/H?

In case after filing form 15G/H, your tax liability does not comes to zero then you have to pay the taxes. Moreover, this may amount to wrong or false declaration and can attract you repercussions as mentioned above u/s 277. So be very vigilant before filing these forms.


Q- Do I need to submit these form to Income Tax Department?

Not Really, actually they are submitted to the authority from which you will receive income and on such income the respective authority is liable to deduct the TDS. No separate compliances are required to be undertaken at your part.


Q- Does declaration needs to be submitted to every branch of bank separately?

Yes, it will be better if any income accrues to you which can be tax deductible, then you need to submit the forms to every branch of the organisation from where such income is due.


Q- What if I do not furnish PAN details with Form 15G/H?

Anyone not submitting PAN shall attract TDS @20%.


Q- If bank has deducted tax in-spite of duly filing Form 15G/H, can I demand for refund?

No, even in case where bank has deducted your tax after duly filing Form 15G/H you cannot demand for refund from bank. The only route open is to file your Income Tax Return and claim refunds in it.


Q- What is the perfect time for submission of the Form?

It is suggested to file your form at the beginning of the year so as to avoid a situation where bank has already deducted your taxes.


Q- Shall I obtain acknowledgement for Form 15G/H filed?

It is suggestive to obtain the same. It help to lesser the cases of wrong declaration claims made by banks on the form filer. Also, you get a valid proof in hand in case TDS is deducted or wrong deducted.


Q- What if i miss filing Form 15G/H?

There are no harsh consequences to it. It is just that you will now be required to file income tax return to validly claim TDS refund.


Q- Can HUF submit Form 15G/Form 15H?

Ans: Form 15G can be submitted by both. But form 15H can only be submitted by Resident Individual.


Q- What happens if 15g not submitted?

Ans: If Form 15G is not submitted then deductor will deduct TDS even if the Income of the deductee is not taxable.


Q- Can NRIs submit Form 15G/Form 15H?

Ans: No, only Indian residents are eligible to submit the Form 15G and Form 15H.


Q- What is the limit for Form 15g?

Ans: There is no provision for any limit. It is submitted when Income of the assessee is below basic exemption limit.


Q- What is total income in Form 15g?

Ans: Total income as per Form 15G is income estimation on which no tax is required to be paid.


Q- Do I need to submit Form 15G/ Form 15H at all the branches of the bank?

Ans: Yes, assessee need to submit the Form 15G/Form 15H


Q- Will my interest income become tax free if I submit Form 15G/Form 15H?

Ans: No, interest income on FD/RD are taxable. However if tax on total income is nil then assessee can submit form 15G/Form 15H


Q- I submitted Form 15G and Form 15H but I have taxable income?

Ans: No, Only an assessee whose income is not taxable and subject to other conditions are eligible to submit form 15G/ Form 15H


CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.