Form 15G and Form 15H for FD Interest: Complete Guide for FY 2026–27
For many fixed deposit (FD) investors in India, Tax Deducted at Source (TDS) on interest income often reduces actual returns. To avoid unnecessary deductions, taxpayers can submit Form 15G or Form 15H to their bank.
If you are planning your investments for FY 2026–27, understanding who can submit these forms and how they work is essential to ensure your interest income is not reduced by TDS.
What Are Form 15G and Form 15H?
Form 15G and Form 15H are self-declaration forms used to request banks and financial institutions not to deduct TDS on interest income.
They can be submitted only when your total taxable income is below the basic exemption limit, meaning your tax liability is zero.
- Form 15G → For individuals below 60 years of age and HUFs
- Form 15H → For senior citizens (60 years and above)
These forms are valid for one financial year only and must be submitted every year.
Why These Forms Are Important for FD Investors
If your FD interest exceeds the threshold limit (₹40,000 for general taxpayers and ₹50,000 for senior citizens), banks will deduct TDS at 10%.
By submitting Form 15G or 15H:
- You can avoid unnecessary TDS deduction
- You receive full interest without blockage
- You reduce refund dependency while filing ITR
- You improve cash flow management
However, these benefits apply only when your total income is not taxable.
Eligibility Criteria for Form 15G
You can submit Form 15G if:
- You are an individual or HUF
- You are a resident of India
- Your age is below 60 years
- Your total income is below the basic exemption limit
- Your total tax liability is NIL
Eligibility Criteria for Form 15H
You can submit Form 15H if:
- You are a resident senior citizen (60+ years)
- Your total tax liability is NIL
- Your estimated income is below taxable limit
👉 Even if your interest income exceeds the threshold, you can still submit Form 15H if your total tax is zero.
How to Submit Form 15G / 15H Online for FD
Most banks now allow digital submission through net banking:
Step-by-step process:
- Log in to your bank’s internet banking
- Go to “TDS / Tax Services” section
- Select Form 15G or Form 15H
- Fill in PAN, income details, and FD information
- Submit and verify via OTP
- Receive acknowledgment from the bank
You must submit separate forms for each bank where you hold FD accounts.
Common Mistakes to Avoid
Many taxpayers make errors while submitting these forms:
- Submitting incorrect income details
- Ignoring total income from all sources
- Not declaring interest from other banks
- Missing annual renewal
- Filing when actually not eligible
Such mistakes may lead to penalties and interest under the Income Tax Act.
Important Update: Always Check AIS & TIS
Before submitting Form 15G/15H, always verify your:
- Annual Information Statement (AIS)
- Tax Information Summary (TIS)
This ensures your declared income matches government records and avoids mismatches during scrutiny.
When You Should NOT Submit Form 15G/15H
Do NOT submit these forms if:
- Your total income is taxable
- Your interest income exceeds exemption limits
- You are unsure about your tax liability
In such cases, TDS will be adjusted or refunded while filing your ITR.
Final Thoughts
Form 15G and Form 15H are powerful tools for managing FD interest taxation, but they must be used carefully and only when eligible.
Correct usage ensures:
- Zero unnecessary TDS deduction
- Better financial planning
- Smooth income tax compliance
However, inaccurate submission can lead to penalties, so proper tax evaluation is always recommended.
Need Help With Tax Filing or TDS Planning?
Managing FD income, TDS compliance, and ITR filing together can become complex—especially if you have multiple income sources.
At EasyTax, we help individuals, freelancers, and businesses with:
- Income Tax Return (ITR) Filing
- TDS Compliance & Planning
- GST Registration & Filing
- Tax Saving Consultation
Stay compliant and maximize your savings with expert guidance.
Q1. What are Form 15G and Form 15H?
A: Form 15G and Form 15H are self-declaration forms submitted to banks to request non-deduction of TDS on fixed deposit interest income.
Q2. Who can submit Form 15G?
A: Form 15G can be submitted by:
- Individuals below 60 years of age
- Hindu Undivided Families (HUFs)
- Residents of India
- Taxpayers whose total income is below the taxable limit
Q3. Who can submit Form 15H?
A: Form 15H is for resident senior citizens (60 years and above) whose total tax liability is NIL.
Q4. Why are Form 15G and 15H important for FD investors?
A: These forms help FD investors avoid TDS deduction on interest income when their total income is not taxable, ensuring full interest earnings.
Q5. What is the TDS limit on FD interest?
A: Banks deduct TDS if interest exceeds:
- ₹40,000 for general taxpayers
- ₹50,000 for senior citizens
Q6. Can I submit Form 15G or 15H every year?
A: Yes, these forms are valid for one financial year only and must be submitted every year.
Q7. How can I submit Form 15G or 15H online?
A: You can submit it through net banking:
- Log in to internet banking
- Go to Tax/TDS section
- Select Form 15G or 15H
- Fill details and submit via OTP
Q8. Do I need to submit separate forms for different banks?
A: Yes, you must submit separate Form 15G or 15H for each bank where you hold fixed deposits.
Q9. What happens if I submit Form 15G/15H incorrectly?
A: Incorrect submission may lead to:
- Penalties under Income Tax Act
- Interest liability
- Scrutiny from tax authorities
Q10. When should I NOT submit Form 15G or 15H?
A: You should NOT submit these forms if:
- Your total income is taxable
- You are unsure about tax liability
- Your income exceeds exemption limits
Q11. What should I check before submitting Form 15G/15H?
A: Always check:
- Annual Information Statement (AIS)
- Tax Information Summary (TIS)
to ensure accurate income reporting.
Q12. Is TDS completely avoided after submitting Form 15G/15H?
A: Yes, if you are eligible and your details are correct, banks will not deduct TDS on FD interest.
