Form 15G and Form 15H: How to Avoid TDS on Interest Income (FY 2025-26)
If your total tax for the year is nil, you should not lose 10% of your FD interest to TDS and then wait months for a refund. Forms 15G and 15H are self-declarations that tell the bank not to deduct tax at source. Budget 2025 also raised the TDS thresholds on interest from 1 April 2025, so fewer depositors face TDS at all.
TDS thresholds on interest for FY 2025-26 (Section 194A)
| Depositor | Payer | TDS trigger (interest per year) | Rate |
|---|---|---|---|
| Below 60 | Bank / co-operative bank / post office | Above Rs 50,000 | 10% (20% without PAN) |
| Senior citizen (60+) | Bank / co-operative bank / post office | Above Rs 1,00,000 | 10% (20% without PAN) |
| Any | Other payers (e.g. company deposits) | Above Rs 10,000 | 10% |
Who can submit Form 15G
- Resident individual (or HUF) below 60 years; companies and firms cannot use it.
- Tax on your estimated total income for FY 2025-26 must be nil.
- Your total interest income must be below the basic exemption limit — Rs 2,50,000 (old regime) or Rs 4,00,000 (new regime).
- A valid PAN is mandatory; without it the declaration is invalid and TDS applies at 20%.
Who can submit Form 15H
- Resident individual aged 60 or above at any time during the year (seniors must use 15H, not 15G).
- Only one condition: tax on estimated total income must be nil — income may exceed the exemption limit if the Section 87A rebate or deductions bring tax to zero.
- Non-residents cannot submit either form.
When and how to submit
- Submit at the start of the financial year (April), before the first interest credit, to every bank/branch and deductor that pays you interest — most banks accept it through net banking.
- The declaration is valid for one financial year only; submit a fresh form each April.
- Also usable for EPF withdrawals, certain insurance commission/maturity payouts and rent, where the respective TDS rules allow.
- Wrong declarations are risky: a false statement can attract prosecution under Section 277 of the Income-tax Act — imprisonment from 3 months up to 7 years, depending on the tax involved. Only declare nil tax if it is genuinely nil.
Worked examples
Young saver
Ankit, 26, expects Rs 2,20,000 total income including Rs 70,000 FD interest. His tax is nil and interest is below the exemption limit, so he submits Form 15G in April 2025 and his bank pays the full interest without TDS.
Retired senior
Mrs Iyer, 66, earns Rs 95,000 bank FD interest and a small pension; her tax after deductions is nil. Her interest is within the Rs 1 lakh senior threshold anyway, but she submits Form 15H to cover any extra deposits made during the year.
TDS already cut
Deepak forgot to submit 15G and the bank deducted Rs 6,500 TDS on Rs 65,000 interest. His total tax is nil, so he files his ITR, reports the interest, and claims the full Rs 6,500 as a refund — he can file his return online to get it.
Old regime vs new regime
- Forms 15G/15H are about TDS, not deductions, so they work under both regimes — but the basic exemption limit used for the 15G test differs: Rs 2.5 lakh (old) vs Rs 4 lakh (new) for FY 2025-26.
- Estimate your tax under your chosen regime with our income tax calculator before declaring nil liability.
Documents to keep ready
- PAN (mandatory) and estimated income computation for FY 2025-26
- List of all deposits and expected interest from each bank/branch
- Acknowledgement/UIN of each Form 15G/15H submitted
- Form 26AS and AIS to verify whether any TDS was still deducted
Common mistakes to avoid
- Submitting Form 15G when your estimated tax is not actually nil — this is a punishable false declaration, not a harmless shortcut.
- Submitting the form to only one branch while holding FDs at several banks — every deductor needs its own declaration.
- Forgetting to submit a fresh form each April — last year's declaration lapses with the financial year.
- A senior citizen using Form 15G instead of Form 15H.
- Assuming no TDS means no tax — interest below the threshold is still taxable income and must be reported in your ITR.
Get expert-assisted filing
All India ITR can check whether you genuinely qualify for Form 15G/15H, and if TDS has already been deducted, file your return to recover every rupee as a refund.
Related current ITR guides
More AY 2026-27 tax guides
Save tax: Home loan benefits · NPS (80CCD) · Donations (80G) · Education loan (80E) · Interest income (80TTA/80TTB) · Form 15G/15H · Capital gains exemptions (54/54F/54EC)
Investors and traders: F&O and intraday tax · ESOP and RSU tax · Share buyback tax · Foreign income and Schedule FA · Gift tax (56(2)(x)) · HUF taxation
Calculators and tools: Income tax calculator · Advance tax calculator · 80C tax-saving calculator · NPS calculator · Gratuity calculator · EPF calculator · Crypto tax calculator · HRA calculator
Filing and compliance: Section 87A rebate · Marginal relief · Form 10-IEA · PAN-Aadhaar link · AIS and TIS · ITR-U updated return · Discard ITR and condonation · TDS on rent and property · Income Tax Act 2025
Frequently asked questions
When does a bank deduct TDS on FD interest in FY 2025-26?
Under Section 194A, for FY 2025-26 a bank, co-operative bank or post office deducts 10% TDS when your annual interest from that payer exceeds Rs 50,000 (raised from Rs 40,000), or Rs 1,00,000 if you are a senior citizen (raised from Rs 50,000). TDS is 20% if PAN is not provided.
Who can submit Form 15G?
A resident individual (or HUF) below 60 years can submit Form 15G if the tax on their estimated total income for the year is nil and their total interest income is below the basic exemption limit — Rs 2.5 lakh under the old regime or Rs 4 lakh under the new regime for FY 2025-26.
Who can submit Form 15H?
A resident individual aged 60 or above can submit Form 15H if the tax on their estimated total income for the year is nil, even if the income exceeds the basic exemption limit (for example, where the Section 87A rebate brings tax to zero).
What if TDS was already deducted despite nil tax liability?
You cannot get the money back from the bank. File your income tax return, report the interest income and the TDS (visible in Form 26AS/AIS), and claim the excess as a refund from the Income Tax Department.
Sources reviewed
- Income Tax Department – FAQs on Form 121 (earlier Forms 15G and 15H)
- Income Tax Department – Offline Utility for Statutory Forms (filing Form 15G/15H)
- Income Tax Department – Income Tax Forms (e-filing help)
This guide is for general understanding. Submitting 15G/15H with a wrong nil-tax declaration can invite prosecution — estimate your full-year income carefully or take expert help before declaring.
