What Are Forms 15G and 15H?

The income tax department issues the Form 15G and Form 15H as self-declaration forms. By filing these forms, individuals can declare that their total income is below the basic exemption limit; hence, TDS should not be deducted from their interest income.

The difference between the two:

• Form 15G: The form is filed by individuals below 60 years of age and Hindu Undivided Families (HUFs).
• Form 15H: The form is filed specially by senior citizens (60 years or above).

Moreover, both of the forms can only be filed by individuals who are residents of India and whose total annual income, including interest, is below the basic exemption limit in a financial year (for the financial year 2023-24, this limit is Rs. 2.5 lakh under the old tax regime and Rs. 300,000 under the new tax regime).

When Should You File Form 15G/15H?

The suitable time to file Form 15G/15H is at the beginning of the financial year, i.e., in April. This ensures no TDS is deducted from your interest from the start. But if you forget, don’t worry, you can still submit the form anytime during the year. It is just that the start of the financial year is the best time for filing these forms. Remember the following points:

• These forms are valid for only one financial year.
• You must submit them again every year if you want to continue avoiding TDS.

What Happens After Submission?

Once you submit the form:

• The bank or finance company verifies your information.
• If you’re eligible, they will not deduct TDS from your interest income.
• You will receive the full interest amount, without any tax cut.
• You can check your account statement to confirm.

If there’s any error in the form or eligibility, the TDS may still be deducted; hence, always make sure everything is filled correctly.

Why Is Submitting Form 15G/15H Useful?

Here are some key benefits:

• No money gets deducted from your interest income.
• You don’t need to file an ITR just to claim a refund for deducted TDS.
• Your FD or RD investments grow without any tax cuts, helping your money compound faster.
• The process is simple, online, and hassle-free with most of the banks.

Final Thoughts

If your total income is below the taxable limit, there’s no reason to lose part of your interest income to TDS. By submitting Form 15G or 15H, you can keep your entire earnings without deductions.