How to Submit Form 15G/15H to Avoid TDS on FD Interest

Form 15G 15H TDS FD

Is your bank deducting TDS (Tax Deducted at Source) on your fixed deposit interest even though your total income is below the taxable limit? You can prevent this by submitting Form 15G or Form 15H. These forms declare that your income is below the taxable threshold, and the bank should not deduct TDS. This guide explains who should file, how to submit, and common mistakes to avoid.

What Are Form 15G and Form 15H?

Form 15G is a self-declaration form submitted by individuals below 60 years of age to request the bank not to deduct TDS on interest income, provided their total income is below the basic exemption limit.

Form 15H is the equivalent form for senior citizens (aged 60 and above). The eligibility criteria are slightly more relaxed for senior citizens.

When Is TDS Deducted on FD Interest?

Banks deduct TDS on fixed deposit interest when:

Total interest income from all FDs in a bank exceeds Rs 40,000 in a financial year (for regular individuals).
For senior citizens, the threshold is Rs 50,000.
TDS is deducted at 10% if PAN is provided, or 20% if PAN is not linked.

Who Should Submit Form 15G?

You should submit Form 15G if:

You are below 60 years of age.
Your total income (including FD interest) is below the basic exemption limit (Rs 2.5 lakh under old regime or Rs 3 lakh under new regime).
The tax calculated on your total income is nil.
You are an individual or HUF (Hindu Undivided Family).

Who Should Submit Form 15H?

You should submit Form 15H if:

You are 60 years or older (senior citizen).
The tax on your estimated total income for the year is nil.
Note: There is no income limit condition for Form 15H — only the tax liability should be nil. Senior citizens can have higher income due to the Rs 50,000 deduction under Section 80TTB and higher exemption limit.

How to Submit Form 15G/15H Online

Step 1: Log In to Your Bank’s Net Banking

Most major banks now allow online submission of Form 15G/15H. Log in to your internet banking portal or mobile app.

Step 2: Navigate to the Form 15G/15H Section

Look for options like “Tax Centre,” “TDS,” “Form 15G/15H,” or “Investment Services” in the menu.

Step 3: Fill in the Form Details

The online form will ask for:

Your PAN number
Assessment year
Estimated total income for the financial year
Estimated income from fixed deposits at this bank
Whether you have filed Form 15G/15H earlier, and if so, the number of forms filed

Step 4: Submit and Save Confirmation

Review the details, submit the form, and save the acknowledgement. The bank will process it and stop TDS deduction on your FD interest for that financial year.

How to Submit Form 15G/15H at the Branch

Download Form 15G or 15H from your bank’s website or the Income Tax Department’s website.
Fill in the form with accurate details. Sign the form.
Visit your bank branch and submit the form.
Get an acknowledgement receipt from the bank.
If you have FDs at multiple branches of the same bank, one submission usually covers all branches.

When to Submit

Submit at the beginning of each financial year (April). Forms are valid for one financial year only.
If you open a new FD during the year, submit the form again or ensure the bank has your existing declaration on file.
If you miss the deadline, TDS will be deducted, and you will need to claim a refund when filing your income tax return.

Common Mistakes to Avoid

Submitting when income exceeds the limit: If your total income is above the exemption limit, do not submit Form 15G/15H. This is a legal declaration, and incorrect submission can lead to penalties.
Forgetting to submit every year: Form 15G/15H is valid for one financial year only. You must submit a fresh form each year.
Not submitting to all banks: If you have FDs at multiple banks, submit the form separately at each bank.
Wrong PAN: Ensure your PAN is correctly mentioned. A wrong PAN can lead to TDS being deducted at 20%.
Not considering all income sources: Include income from all sources (salary, business, rent, etc.) when estimating total income, not just FD interest.

What If TDS Is Already Deducted?

If TDS has already been deducted and your income is below the taxable limit, you can claim a refund by:

Filing your income tax return (ITR).
Reporting the TDS deducted (visible in Form 26AS and AIS).
The excess TDS will be refunded to your bank account by the Income Tax Department.

Self-Employed? This Matters Even More

Many self-employed individuals have irregular income and may fall below the taxable limit in certain years. Submitting Form 15G/15H ensures you retain your full FD interest without unnecessary TDS deduction, improving your cash flow.

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