What Is Form 15G and 15H? A Complete Guide

Managing your finances efficiently often comes down to one thing: cash flow. In India, Tax Deducted at Source (TDS) can sometimes feel like a roadblock, especially when your total income doesn't even fall into a tax bracket. Every year, millions of taxpayers find their hard-earned interest income "stuck" with the tax department, forcing them into a long wait for a refund.

In fact, data suggests that the Income Tax Department processes millions of refund claims annually. For FY 2023-24 alone, over ₹3.36 lakh crore was issued in refunds. While getting a refund is great, not having the tax deducted in the first place is better. This is where Form 15G and 15H become essential tools for your financial planning.

There are other important forms you will come across during the tax season, like the Form 16, and you must learn about them as well.

This guide will break down the meaning, eligibility, and strategic usage of these forms to help you protect your liquidity and remain compliant with Indian tax laws.

 

What Are Form 15G and Form 15H?
 

At their core, Form 15G and 15H can be explained as self-declaration documents. They are submitted by individuals to deductors, such as banks or insurance companies, to request that no TDS be deducted from specific types of income.
 

Form 15G means you are declaring that your total income for the financial year is below the basic exemption limit, and therefore, your tax liability is nil. These forms are most commonly used for preventing TDS on:
 

• Interest earned on Fixed Deposits (FDs) and Recurring Deposits (RDs)
   
• Dividend income from shares or Mutual Funds exceeding ₹10,000 from April 1, 2025 (Section 194 of the Income Tax Act)
   
• The "net income" portion of life insurance policy payouts
   
• EPF withdrawals before five years of continuous service
  
   

Difference Between Form 15G and Form 15H
 

Which form is right for you is a matter of age and income criteria. While both serve the same purpose, which is preventing TDS, they cater to different demographic segments.
 

Eligibility Criteria for Form 15G
 

If you are a young professional or a freelancer, understanding who is eligible for Form 15G is vital for your savings. To submit this form, you must meet these conditions:
 

• Individual/HUF: You must be an individual (under 60 years) or a Hindu Undivided Family
   
• Resident Status: Only Resident Indians can apply; NRIs are ineligible
   
• Tax Limit: The tax on your total estimated income for the financial year must be nil
   
• Income Cap: Your total interest income (before any deductions) must be less than the basic exemption limit for that year
   

Naturally, you are now wondering, 'How to fill Form 15G?'
 

It is predominantly a digital process available via your bank's net banking portal.

 

Eligibility Criteria for Form 15H
 

For seniors, who is eligible for Form 15H is slightly more flexible regarding interest income.
 

• Age: You must be at least 60 years old during the financial year.
   
• Tax Liability: Your estimated final tax for the year must be nil after taking into account all deductions and rebates.
   
• No Interest Cap: Unlike 15G, a senior citizen can submit 15H even if their interest income exceeds the basic exemption limit, as long as their final taxable income stays at zero.
   

Knowing how to fill 15H form correctly ensures that senior citizens, who often rely on interest for monthly expenses, maintain their full cash flow.

 

When Should You Submit Form 15G or Form 15H?
 

Timing is everything. To avoid "refund dependency," you should submit these forms at the very start of the financial year (April). This ensures the deductor records your status before the first interest payout occurs.
 

Key reminders for submission
 

• Fresh Submission: You must submit these forms every single financial year.
   
• Multiple Deductors: If you have FDs in three different banks, you must submit a separate form to each bank.
   
• Life Events: If you are planning a premature PF withdrawal, learn how to fill Form 15G specifically for the EPFO to prevent 10% TDS on your corpus as long as you have provided the PAN.
  
   

New Update from FY 27
 

From FY 2026-27 onwards, Form 15G and H will be consolidated into a single, unified self-declaration document Form 121 (as prescribed under the Income Tax Rules, 2026).

 

Conclusion
 

Forms 15G and 15H are powerful tools to prevent TDS in life insurance and bank deposits from eating into your liquidity. However, remember that submitting these forms does not make your income "tax-free"—it only prevents the deduction of tax at the source. You are still responsible for declaring this income when you file your returns.
 

If you missed the deadline and tax was deducted, your only recourse is to claim a TDS refund by filing your ITR.
 

Frequently Asked Questions (FAQs)
 

Do I need to submit these forms every year?

Yes. Forms 15G and 15H are only valid for one financial year. You must submit a fresh declaration every April to ensure uninterrupted exemption.

 

What happens if my income becomes taxable after submission?

If your income exceeds the taxable limit later in the year, you should immediately inform the deductor to start deducting TDS to avoid penalties later.

 

Do I need to submit separate forms to multiple banks?

Yes. Each financial institution is a separate "deductor." You must provide a separate declaration to every bank or insurer where you hold taxable investments.