Form 15G and 15H: Avoiding TDS on Interest When No Tax Is Due
Priya Sharma
· Corporate Legal & Compliance Counsel· 3 min read
Banks deduct tax on interest once it crosses a threshold, regardless of whether you actually owe any tax. Forms 15G and 15H are the mechanism for stopping that at source rather than reclaiming it a year later.
- ✓15G for those under sixty, 15H for senior citizens.
- ✓Both require estimated total income to be below the basic exemption limit.
- ✓15G additionally requires total interest to be below that limit; 15H does not.
- ✓The declaration is valid for one financial year and must be filed with each payer.
Who can file which
Form 15H is for resident individuals aged sixty or above. Form 15G is for resident individuals below sixty, and for HUFs and trusts.
Neither is available to a non-resident, a company or a firm. Filing one when you are not eligible is a false declaration under Section 277, which carries prosecution.
The conditions
Both require that the tax on your estimated total income for the year is nil. Form 15G has an additional condition: the aggregate interest income must not exceed the basic exemption limit.
That extra condition is why a person under sixty with large interest income cannot file 15G even if deductions bring their tax to nil, while a senior citizen in the same position can file 15H.
The TDS thresholds it avoids
Section 194A requires banks to deduct on interest exceeding the prescribed threshold, with a higher threshold for senior citizens. Section 80TTB separately exempts interest income up to fifty thousand rupees for senior citizens, and Section 80TTA exempts savings account interest up to ten thousand for others.
The declaration does not change your tax liability. It only stops deduction at source where no liability exists.
Practicalities
Submit to each payer separately — every bank, and every branch where the bank treats branches separately. It must be filed afresh at the start of each financial year, and April is the practical deadline since interest credited before submission will already have suffered deduction.
The payer reports all declarations received, so a declaration inconsistent with your return is visible to the department.
Frequently asked questions
### What is the difference between Form 15G and 15H?
15H is for resident individuals aged sixty or above; 15G is for those below sixty and for HUFs. 15G carries an additional condition that total interest income must not exceed the basic exemption limit, which 15H does not.
### Do I need to file it every year?
Yes. The declaration is valid for one financial year and must be submitted afresh at the start of each year, to every payer separately. Submitting in April avoids deduction on interest credited early in the year.
### What if I file it wrongly?
A false declaration is an offence under Section 277, punishable with imprisonment and fine. Payers report all declarations to the department, so an inconsistency between the declaration and your return is readily visible.
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Frequently Asked Questions
What is the difference between Form 15G and 15H?
15H is for resident individuals aged sixty or above; 15G is for those below sixty and for HUFs. 15G carries an additional condition that total interest income must not exceed the basic exemption limit, which 15H does not.
Do I need to file it every year?
Yes. The declaration is valid for one financial year and must be submitted afresh at the start of each year, to every payer separately. Submitting in April avoids deduction on interest credited early in the year.
What if I file it wrongly?
A false declaration is an offence under Section 277, punishable with imprisonment and fine. Payers report all declarations to the department, so an inconsistency between the declaration and your return is readily visible.
Priya Sharma
Corporate Legal & Compliance CounselSpecializing in commercial contract litigation, Section 138 NI Act recovery, commercial property leases, and MSMED Act compliance.