How Form 15G Helps You Avoid TDS on Fixed Deposits & When to Submit It

If you're someone who earns interest from fixed deposits (FDs) but your total income is below the taxable limit, there's a good chance you're losing money unnecessarily to TDS.

TDS (Tax Deducted at Source) is automatically deducted by banks when your annual interest income crosses a certain limit — even if you're not liable to pay income tax. The good news? You can avoid this deduction altogether by submitting a simple declaration: Form 15G.

This blog will explain how Form 15G for fixed deposits works, who should use it, when to submit it, and how to make sure your interest earnings stay fully in your pocket.

What is Form 15G for Fixed Deposits?

Form 15G is a self-declaration form you can submit to your bank to request non-deduction of TDS on your interest income — especially from fixed deposits.

Here’s what it does:

• Tells the bank that your total income is below the taxable limit.
• Ensures no TDS is deducted on interest income, so you don’t have to wait for refunds
• Helps maximize your take-home interest, especially useful for students, homemakers, or anyone with minimal income

Eligibility for Form 15G

You can submit Form 15G for fixed deposits if:

• You are an Indian resident and below 60 years of age
• Your total interest income is expected to be below ₹2.5 lakh for the financial year
• Your total taxable income (after deductions) is zero

Note: You must also have a valid PAN card. Without it, banks will deduct TDS at a higher rate of 20%.

What is Form 15H and How Is It Different?

While Form 15G is meant for individuals below 60, Form 15H is specifically designed for senior citizens — that is, people aged 60 years or above.

This form serves the same purpose: to request the bank not to deduct TDS on interest income from fixed deposits and other savings. However, the eligibility criteria are slightly relaxed for seniors.

Who Can Submit Form 15H?

• You must be a resident Indian and 60 years or older
• Your estimated tax liability should be nil
• Your total interest income may exceed the usual TDS threshold, but you still qualify if the final taxable income is below the slab

This makes Form 15H especially useful for retirees who depend on FDs or recurring deposits for income but don’t fall into a taxable bracket after deductions.

Tip: Form 15H is often submitted at the beginning of the financial year by pensioners or older adults with multiple fixed deposits.

Difference Between Form 15G and Form 15H (Comparison Table)

When and Where to Submit Form 15G or 15H

Timing and correct submission are key to making sure TDS isn’t wrongly deducted.

When Should You Submit?

• At the beginning of the financial year (ideally in April) to cover the full year’s interest
• Before opening a fixed deposit or right after, especially if your projected interest will exceed ₹50,000 (₹1,00,000 for seniors)
• When renewing an FD — a new form is required each time the deposit is renewed
• As soon as cumulative interest across all FDs may cross the threshold

Submitting late might result in TDS deductions, even if you’re otherwise eligible to avoid them.

Where Should You Submit?

• Submit to each bank branch where you have a fixed deposit — one form per branch
• Most banks now accept online submissions through internet banking portals
• Offline submission is still accepted at bank counters — ensure you attach a copy of your PAN card
• Remember to resubmit each financial year — it doesn’t auto-renew

Pro Tip: If your FD is split across multiple banks, you need to submit the form to each bank individually. Banks only check their own branch records when calculating interest income.

Why Submitting These Forms Matters

Submitting Form 15G for fixed deposits (or Form 15H for senior citizens) can make a real difference — especially if your income is modest or non-taxable.

Here’s why it’s important:

1. Prevents Unnecessary TDS Deductions

Banks are legally required to deduct TDS once interest income crosses ₹50,000 per year (₹1, 00, 000 for senior citizens). Even if your overall income isn’t taxable, this deduction happens by default unless you submit the right form.

2. Helps You Avoid Delays in Refunds

Without Form 15G or 15H, you may have to claim the deducted amount back when filing your Income Tax Return (ITR), which can be a long wait — especially frustrating for those with tight cash flows.

3. Maximizes Interest Income

By preventing deductions, your interest stays intact, giving you full access to your returns, when you need them. This is particularly helpful for students, homemakers, and individuals with no regular income.

Reminder: Even one small FD with high interest might trigger TDS if the total income isn’t declared via the form. It is advisable to use an FD Calculator and calculate your returns, annually, to make better informed decisions. 

Common Mistakes to Avoid while Filing Form 15G or 15H

Filing Form 15G or 15H seems simple, but even small errors can cause the form to be rejected or ignored by the bank. Watch out for these common slip-ups:

1. Submitting the Form Without Checking Eligibility

Many people submit the form without verifying if they truly qualify. If your income is taxable, you’re not eligible — and submitting the form falsely could invite penalties.

2. Forgetting to Include All Deposits

If you have multiple FDs across branches or banks, you must submit separate forms and include total interest expected across all of them.

3. Not Submitting PAN Details

Failing to mention or link your PAN card can result in TDS being deducted at a higher rate of 20%, even if you’re eligible for exemption.

4. Submitting the Form Too Late

If you delay submission, banks may deduct TDS before your form is processed. It’s always better to submit at the start of the financial year.