Form 15G vs Form 15H: Key Differences & How to Use Them

If you earn interest from bank deposits, bonds, or other sources, banks will deduct TDS (tax deducted at source) once your interest crosses a threshold. To avoid losing money to TDS when your total income is below the taxable limit, you can submit Form 15G or Form 15H. These are self-declaration forms in which you certify that your income is non‑taxable, so the bank should not deduct tax on the interest.

In simple terms, Form 15G is for residents under age 60, and Form 15H is for senior citizens (60+). Both forms must be filed each financial year and for each bank or deposit separately.

What Are Form 15G and Form 15H?

Form 15G and Form 15H let you prevent TDS on interest income if you owe no tax. Form 15G is a declaration used by an eligible person (an individual under 60 years of age or an HUF) whose annual income is below the exemption limit. By submitting it to the bank, you state that your total taxable income is within the tax-exempt limit (up to ₹2.5 lakh per year under the old regime, up to ₹4 lakh under the new regime), so no TDS should be deducted.

Form 15H is similar but only for senior citizens (60+). You can file Form 15H if your net tax liability on interest and other income is nil.

Both forms are most commonly used for interest on fixed deposits, recurring deposits, bonds, or EPF withdrawals. They are not just “for banks” – you can use Form 15G/15H with any payer (banks, post offices, mutual funds, etc.) where TDS on interest or other income is applicable. Note that these forms must be furnished before interest is paid out (typically at the start of the financial year or when the deposit is made) to be effective. 

Each form is valid only for one year, so you should re-submit it every year and attach your PAN, or else the bank may deduct TDS at a higher rate – 20%.

Key Differences between Form 15G and Form 15H

The table below summarizes the main differences:

Fixed Deposits (FDs) and TDS

Fixed deposits (FDs) are a common way to earn interest, but banks are required by law to deduct TDS if the interest in a year crosses ₹50,000 for non-seniors or ₹1,00,000 for seniors. If you’re under 60, any FD interest over ₹50,000 would normally trigger a 10% TDS. By submitting Form 15G in advance, you tell the bank that your total income is below the tax-exempt limit, so they should not deduct tax on that interest. Likewise, if you’re 60 or older, Form 15H lets you avoid TDS even on higher interest: as long as your total tax after rebates is nil, the bank will refrain from deducting tax.

For example, suppose you’re a senior citizen receiving ₹1.2 lakh interest from fixed deposits this year. Without Form 15H, the bank must deduct 10% TDS on the full ₹1.2 lakh once it exceeds the ₹1 lakh threshold. But if your total taxable income (after deductions) is, say, ₹11 lakh in the new regime, Section 87A rebate makes your tax ₹0, so Form 15H applies. Filing Form 15H tells the bank “my tax is zero, please don’t deduct TDS,” effectively keeping that extra ₹12,000 interest in your pocket.

To make this work smoothly, file the form before the FD’s interest is credited (ideally at the start of the financial year or when you open/renew the deposit). Remember that if you have deposits in multiple banks or branches, you need to give the form to each one separately; banks only check their own records. Also, always attach a copy of your PAN to avoid higher TDS. In short, timely use of Form 15G/15H maximizes your FD returns by preventing unnecessary TDS deductions.