prpri Form 15H / Form 15G to Avoid TDS deduction Form 15H / Form 15G to Avoid TDS deduction

Form 15G and form 15H are used for avoiding the TDS deduction at source if deductee expects his Income to be lower then the taxable limit. In this article we are discussing important points to remember while submitting the Form 15G and Form 15H to the deductor. We have also included frequently asked questions and answers on Form 15G and Form 15H.

Form 15H :- Declaration under sub-section (1C) of section 197A of the Income-tax Act, 1961, to be made by an individual who is of the age of sixty years or more claiming certain receipts without deduction of tax.

  • Form 15H can be submitted only by Individual above the age of 60 years.
  • Estimated tax for the previous assessment year should be nil. That means he did not pay any tax for the previous year because his income is not coming under the taxable limit.
  • You need to submit form 15H to banks if interest from one branch of a bank exceeds 10000/- in a year.
  • This form should be submitted to all the deductors to whom you advanced a loan. For example you have deposit in three SBI bank branches Rs.100000 each. You must submit the Form 15H to each branch.
  • Submit this form before the first receipt of your interest. It is not mandatory but it will avoid the TDS deduction. In case of the delay, the bank may deduct the TDS and issue TDS certificate at the end of the quarter.
  • You need to submit for 15H if interest on loans, advances, debentures , bonds or say interest income other than interest on bank deposits exceeds Rs.5000/-.

Form 15H Form 15G to Avoid TDS deduction

Form 15G:– Declaration under sub-sections (1) and (1A) of section 197A of the Income-tax Act, 1961, to be made by an individual or a person (not being a company or a firm) claiming certain receipts without deduction of tax of tax.

  • Form 15G can be submitted by Individual who is below the age of 60 years and by Hindu Undivided family.
  • The points applicable for 15H are applicable to the Form 15G as well, except that the Form 15H is applicable only for the senior citizens.
  • Form 15G should be submitted before the first receipt of interest on fixed deposits.

Difference between form 15G and 15H:-

1. Form 15G can be submitted by an individual below the Age of 60 Years while form 15H can be submitted by senior citizens i.e. individual’s above the age of 60 years.

2. Form 15G can be submitted by Hindu Undivided families but form 15H can be submitted only by Individual above the age of 60 years.

3. 15G CAN NOT BE filed by any person whose income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax.

In a nutshell we can say that anybody whose tax on estimated income is not NIL and having income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax can not file DECLARATION u/s 15G.

However, if you are eligible and also fulfill the conditions, the payer can not deduct the tax even if it is above Rs.10,000.

Note 1:These Forms can only be used for payments like dividends, interest on securities, interest other than interest on securities, national saving schemes, interest on units, premature withdrawal from provident fund (wef june, 2015), rent (wef June, 2016), insurance commission (wef June,2017), payment in respect of life insurance policy (wef june,2015)

Note 2 :- Maximum amount not chargeable to tax for Hindu Undivided family (HUF) and Individuals (below the age of 60 years) for A.Y. 2019-20 is Rs. 2,50,000/- .

Senior Citizens who are eligible to file Declaration in Form 15H have no such conditions. They can submit Form 15H even if their Total Income from interest on securities/interest other than “interest on securities”/units/amounts referred to in clause (a) of sub-section (2) of section 80CCA exceeds maximum amount not chargeable to tax (Rs. 3,00,000 in case of senior citizen and Rs 5,00,000 for super senior citizen) but if tax payable by them is NIL. This is clear from the  declaration is part I of the form 15H, which reads as under:-


I………………………………………………. do hereby declare that I am resident in India within the meaning of section 6 of the Income-tax Act, 1961. I also hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated and that the incomes referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961. I further declare that the tax on my estimated total income including *income/incomes referred to in column 15 *and aggregate amount of *income/incomes referred to in column 17 computed in accordance with the provisions of the Income-tax Act, 1961, for the previous year ending on ………………………………. relevant to the assessment year ………………………………. will be nil.


Question 1:- I am 70 years old. I invested a sum of Rs 10,00,000 in January 2014, in GOI 8 per cent savings bonds (taxable), 2003, via a leading private bank. The bonds issued were on a cumulative basis with a maturity period of six years. The total interest payable at the time of maturity is Rs 5,50,000. I have declared the income from the bonds on an accrual basis y-o-y, and have been filing tax returns since A/Y 20015/16. But the bank is not accepting Form 15H stating that the total interest payable on maturity is more than the threshold limit for senior citizens – Rs 5,00,000 and is insisting on my submitting Certificate u/s 197 from the IT office. What do I do?

Answer 1:- The bank should have deducted tax at source. It seems the bank has not provided for the accrued interest and is therefore not accepting Form 15H. You can prove that the tax on your total income of the previous year in which the interest is to be received shall be nil, even after including the cumulative interest the bank should not resort to tax deduction at source. You can submit Form 15H for deduction of tax at source for A.Y. 2019-20.

Question 2 :- I am a senior citizen having income liable for tax deduction at source in respect of my deposits with State Bank of Hyderabad. They asked me whether I would be filing declaration in Form 15G or 15H in the first week of March in respect of payments made during the year so that I am in a position to judge whether I have taxable income for the year or not and file declaration in Form 15H, if I have no taxable income. On the other hand, State Bank of India and, I understand, some other banks require form at the time of deposit itself. It may not be proper for the bank to act on such declaration made in one year for another year or for that matter act on a declaration which had become stale filed in earlier part of the year for payment towards the end of the year. What is the correct position of law?

Answer 2 :- The doubt raised by the reader is a valid one. The law itself does not provide for any date on which the declaration is required to be filed as long as it relates to the income of the year and filed during the year. Since the deduction of tax at source has to be decided on the date of each credit or payment, deduction has to be made for each such credit or payment. Where an investor is not able to file the declaration in earlier part of the year in view of the uncertainty as to the prospect of his income crossing the exemption limit, he can probably inform the bank that deduction could be deferred till the end of the year. But then, the bank would like to have the declaration at the time of payment so that the declaration may necessarily be filed before the first quarterly payment, if the interest is payable quarterly. The difficulty for the investor in ascertaining the income in advance in such cases cannot be avoided. Tax may have to be deducted and refund applied in due course in such cases.

Question 3: What should I do if I am not liable to pay tax and TDS is not required to be deducted?

Answer 3 :- To avail the benefit of deduction of tax at source at Nil/lower rate, you may submit any of the following documentation :

Certificate from the Indian tax authorities: Certificate under section 197 of the Act issued by the Assessing Officer for nil / concessional rate of TDS can be submitted by any bondholder including companies and firms. The certificate should be submitted by the deductee to the deductor.

Form 15G: If you are a resident person (other than a company, Co-operative society or a firm), you can submit Form 15G in duplicate to deductor. As per the provisions of section 197A of the Act, Form 15G can be submitted provided the tax on your estimated total income for the financial year computed in accordance with the provisions of the Act is NIL and the interest paid or payable to you does not exceed the maximum amount which is not chargeable to tax.

Form 15H: If you are a senior citizen, i.e. if you are of the age of 60 years and above at any point of time during the financial year, you can submit Form 15H even if your income exceeds Rs.3,00,000 (for senior citizen)/500,0000 (for  super senior citizen) p.a. for the purposes of non-deduction of tax at source if your estimated total income for the financial year computed in accordance with the provisions of the Act is NIL.

Entities exempt from tax as per CBDT Circular : For certain specified entities whose income is unconditionally exempt under section 10 of the Act and who are statutorily not required to file return of income as per section 139 of the Act, CBDT has vide Circular no. 4/2002 dated July 16, 2002, granted blanket TDS exemption. Some examples of the specified entities are provident funds, gratuity funds, local authority, hospitals exempt under section 10(23C)(iiiac), educational institutions or university exempt under section 10(23C)(iiiab).

Exemption for insurance companies: Certain entities such as Life Insurance Corporation of India, General insurance Corporation of India along with its four subsidiaries or any other insurer are eligible to receive interest on securities without deduction of tax at source, if such securities are owned by them or it has full beneficial interest in the same.

Question 4:- I am an account holder in a nationalised bank and I filed Form 15H. The bank authorities refused to give acknowledgment for the same, though I have given it in duplicate. What is more is that they have deducted tax though I have no taxable income. What is the remedy for the amount already deducted and to avoid such deduction in future?

Answer 4:- Where tax has already been deducted and deposited by the bank, the only recourse for the assessee is to file a refund claim along with the return with the assessing officer and await the refund. It is possible for an assessee to seek remedy for deficiency of service in a consumer forum or to file a complaint with the Ombudsman asking for compensation for the trouble to which the reader has been put to. But then, the reader had failed to press for an acknowledgment. He should have complained about denial of acknowledgment at that stage to the concerned superior officers or should have sent it by registered post acknowledgment due for purposes of evidence for his case. In fact, it is not open to the bank official to refuse acceptance of any document sought to be served on the bank or refuse acknowledgment, where demanded.

Some of the taxpayers have complained us about the inordinate delay in getting TDS certificate to enable claim of refund in time. Such complaints received from time to time indicate the inordinate delay on the part of even banks and large corporate as regards this statutory duty to issue such certificates promptly. In the case of banks, this is again a matter on which complaint should be made to senior officers of banks in writing and on failure of response to the Ombudsman. A complaint to the TDS section of the Income-tax Department, which is expected to enforce law regarding issue of TDS certificates promptly, should be the most effective remedy, if only the TDS cell activates itself to enforce the law and the rules on those responsible for tax deduction at source for the benefit of the taxpayers.

Also Read :- Download, know, FAQ on Form 15G & 15H

Please Note –  In Respect of all the Provision related to  Submission of Form 15H Finance Bill 2012 has reduced the Age Limit for Senior Citizen to 60 Years from 01.07.2012

(Republished with amendments)


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  1. DULAL MITRA says:

    Sincere THANKS for this very knowledgeable and useful articles. I have a question. ” Suppose, Income of a person jumps all on a sudden and crosses Taxable Limits after filling form no 15H in the current year. Whether will this attract any Penalties / Punishment ? Please help.

  2. Respected Sir / Madam, It is a good article and does benefit many. Only crucial point is that the Form No. 15 H as quoted by you in the article says that “Income computed in accordance with the provisions of the Income-tax Act”. This obviously means that the Income arrived at after reducing the amounts of deductions available Under Chapter VI A of the Act. But, simultaneously, the article also quotes in the same Form No. 15 H that ” and the interest paid or payable to you does not exceed the maximum amount which is not chargeable to tax.”. Here lies the contradiction. A person may have Interest on deposits amounting to Rs.5,00,000 and is entitled deduction Under Sec 80C of Rs.1,50,000, Under Sec 80 D of Rs.30,000 and Under Sec 80 TTB of Rs.50,000. Under such circumstances, the Senior Citizen is not liable to pay Income-tax and the Bank has to accept the Form No. 15 G even though the interest component is Rs.5,00,000. Can you please be kind enough to clarify on this point.
    With regards, Jagadeesh Bharadwaj.

  3. Mohit says:


    I have FD in HDFC bank for Rs 150000 @ 9.0 Interest p.a. I have submitted 15G form last year and this year also yet bank deducted Rs 721 for TDS. May I know why?
    What are the rules for deduction?

  4. Vinay Salvi says:

    Dear Sir

    please gudie about i have FD in Bnak if 15G not submit for the 1st qutear can i submit for the remaning qutea

    Vinay Salvi

  5. Nishant says:

    Dear Sir
    I have given loan to a builder who deducts tds, but pays after due date of filing returns, say for current yaer after 31 aug for the current year.
    Can i issue form 15 g to them for the next year hence to avoid the tds problem. my income exceeds the limit.
    please suggest what to do?

  6. gopal says:

    could any of you please share what is the maximum extent of FD value that one can hold in any bank with form 15G submission.

    is it within 2.5 lakhs of interest income?

    please share your expertise.

  7. Dheeraj says:

    I have no income source but i earn interest around 100000 p.a on FD’s as my father saving is there and He is no i need do fill 15-G

  8. kanika says:

    I have salary of 2,30,000 and still i am paying TDS. Overall, employees who have salaries greater than 2,50,000 need to pay tax.Can I get more information about the calculations of TDS.

  9. R.K.MAKHARIA, says:

    CAME INTO EXISTENCE VIDE tAX LAW (AMDT)BILL 2006 DT.23.07.20o6 & also VIDE ACT,2009
    RAIPUR (CG),DT.15.07.2015

  10. Prakash says:

    I am claiming for PF withdrawal for the company in which I worked one year ago for 3 years and also my income in the current financial year is Zero. Where should I get the Form 15G originals? or should I submit the filled Form 15G along with the PF withdrawal forms?

    Kindly help me out.

  11. madan says:

    sir can v submit the form of march 2014 in october 2014 or what is the period with in which the form 15h or 15g to be submitted

  12. nilesh sheth says:

    my father is 86 and he has only bank FD interest income of 489000, can i get the benefit of 15 H ?
    do reply .
    nilesh sheth,

  13. smitha.k says:

    sir/ madam,

    Actually my salary is rs.160,000 p.a but still every month mine rs.1334 (TDS)is deducting from my account.can anybody give me a suggestion for this.Actually my salary is below than taxable limit that is 2,50,000.

  14. Ghansham Wagh says:

    Dear sir,

    I am a pensioner, my pension is 30000 and i have a home loan for which i pay EMI but my bank sbi has all ready started deducting Rs 6000 as TDS from my monthly pension.

    I have a home loan and i submitted document relating to interest i pay to bank so that they do not deduct TDS in month of Feb.but again bank has started deducting 6000 from April 2015.

    I do not have FD,do i still need to submit Form 15H to bank? Please let me know what form do i give them as investment declaration so that my pension does not get deducted

    Digambar Wagh

  15. Ramachandran says:

    I am 69 years old.I submitted form 15h for the fin year 2014-15.Duringb the course of the year I closed my NSS (1987) ACCOUNT WITH POST OFFICEand received Rs 1.97 lacs for which also form 15H WAS GIVEN.aFTER MY DEDUCTIONS MY NET TAXABLE INCOME EXCEED THE XEMPTION LIMIT BY rS 50,000..FOR WHICH i HAVE PAID ADVANCE TAX IN fEB 14.As this was a one time payment this happened.Is this okay? Will I have to pay any further panalty?
    Thanks for your reply in anticipation

  16. KEDARNATH says:

    Dear sir,
    Please tell me if an individual (aged below 60 years) received interest from a proprietary concern, > Rs. 5000 in f.y. 2013-14 and he submits form 15G to the concern, can the proprietary concern accept the form 15G of is it acceptable to banks and financial institutions only. please clarify ASAP.

  17. Ipsita Chakrabortry says:

    I forgot to submit the 15H and bank has deducted TDS of Rs. 1400/- is there any ways by which i can submit my 15H now and the TDS deducted amount is credited back to my account. Please do let me know- Thanks and regards

  18. PRIYA says:

    My annual income is around Rs. 50,000/- per annum received as incentive for direct selling of a product. Though my income well below the taxable limit, the company continues to deduct TDS from my incentive @ 10%. I had to file my return to claim the refund. Please clarify what shall I do.


    How many 15G forms to be submitted. Is it enough that only one form is submitted for a customer or as many forms as the number of deposits held in the bank / branch

  20. kavitha says:

    I have deposited fixed deposits thru Net banking and initially I was not aware of the Form 15 G Submission . In the second quarter I got TDS certificate from the bank in which TDs was deducted , so from 3rd quarter I submitted FORM 15 G and in 3rd quarter also there was some deduction. In the last quarter my TDS deduction was only 12 Rs. Kindly advise how to get the refund of the TDS deducted in the 2nd and 3rd quarters. Is it possible ? in which section it has to be entered ? What is the maximum interest value that can be received without TDS deduction? Awaiting your early reply . Thanks.

  21. Aashish Chhajer says:

    Is there any Due Date for filling 15G/H…… ?
    If YES ….then what is the last date & what will be the consequences if it has not been filled in time……?

  22. K V RAMANA MURTY says:

    I have commuted my pension. IT on my pension income is being shown full amount of pension and the commuted portion is being shown as deductions. As such the IT is being calculated and TDS is being made on gross income. Can I claim refund on commuted pension? Please narrate the provisions available on submission of Form 15H by a senior citizen. I have deposited my terminal benefits as STDRs with SBI, will the interest accrued is under the purview of IT? Any special provisions available for senior citizens to minimize their tax burden?

  23. R.L.Mehta says:

    Vinod Jadav you have asked when 15h/15g to be submitted so that TDS not to be dedected:
    Ans.: when the fincial year starts you submit the above forms and get acknowledgements from the banks or As early as your any FDR due whichever is earlier.

  24. KIRIT BHAGAT says:

    One of my old relatives aged 70 years is receiving pension + interest on banks fixed deposit of about Rs. 520000/ per year.
    He intents to submit form no 15h to the bank so that no tax is deducted on his interest income and he do not have to wait to receive TDS certificate from the bank which is generally isuued in June, and at the same time ie. in April every year he will deposit Advance tax which will be payable by him for that year.
    Is this legal?
    This is just to file I T return as early as posiible, as no TDS certificate from bank will be needed.
    Kindly guide us.

  25. virendra says:

    hi..I want some clarifications regarding interest on fixed deposits….In case the deposit is initiated in present financial year…and getting matured in next financial year… i have to show the interest accumulated ( but not credeited) in this financial year as income  or i have to show the amount credited on maturity in the following financial year??

  26. Tejas Chokshi says:

    Age limit for senior citizens have been reduced to 60 years in 2011 Budget. Acordingly, age required for Form 15H should also be reduced to 60 years instead of 65 years.

  27. Somasundaram says:

    Here I may add that SUNDARAM FINANCE LTD., CHENNAI, is the only good company. which serves well the customers, by posting forms 15G/H accordingly at the appropriate time and reminding the depositors. If need be and requested, their Staff meet the the elders and help them in this respect. Surely, the Banks lack too behind in customer services.

  28. Somasundaram says:

    Thanks for this article and clarifications. How about NRE/NRO deposits with Scheduled Banks and NBFCs for Senior Citizens and others? Kindly publish a detailed article with questions and answers like the above, which would go a long way. Thanks once again.

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