Form 15G vs Form 15H — What is the Difference?
Form 15G is for people below 60 with income under the exemption limit. Form 15H is for senior citizens with zero tax liability. Both stop the bank from deducting TDS on interest, but the rules and age bands are different.
Form 15G is a self-declaration for people below 60 years. Form 15H is the same declaration but for senior citizens aged 60 and above. Both tell your bank not to deduct TDS on interest income if your total taxable income stays below the exemption limit for the year.
Pick the wrong form and the bank cuts 10% TDS anyway, which you then have to claim back through a tax return. Picking the right form takes two minutes if you know the rules.
What Form 15G covers
Form 15G is filed under Section 197A(1) of the Income Tax Act. It applies to resident individuals and HUFs below 60 years whose final tax liability for the year is zero.
Two conditions must be met together.
- Estimated taxable income for the year is below the basic exemption limit (2.5 lakh rupees under old regime; 3 lakh under the new regime as of FY 2024-25).
- Total interest income (all FDs, RDs, bonds put together) stays below the basic exemption limit too.
If either fails, you are not eligible. Filing Form 15G falsely is a penalty offence under Section 277 — up to two years of prison and a fine. The bank keeps a copy. The tax department cross-checks.
What Form 15H covers for senior citizens
Form 15H is for resident individuals aged 60 or above. The rules are gentler because seniors enjoy a higher exemption and an extra 50,000 rupee deduction on FD interest under Section 80TTB.
You qualify if your final tax liability for the year is zero after all deductions. There is no upper limit on interest income for Form 15H — only on tax liability. A senior with 6 lakh FD interest and deductions that push taxable income below 3 lakh can still file it.
Banks accept Form 15H from age 60. The form must be submitted at the start of the financial year and again after any FD is renewed or reinvested. One form covers one branch of one bank — file separately for each.
Form 15G vs Form 15H — side by side
| Feature | Form 15G | Form 15H |
|---|---|---|
| Age eligibility | Below 60 | 60 and above |
| Resident status | Resident only | Resident only |
| Eligible entities | Individuals, HUFs | Individuals only |
| Income limit for eligibility | Interest must be below basic exemption limit | No limit on interest; tax payable must be zero |
| Legal section | 197A(1) and 197A(1A) | 197A(1C) |
| Validity | One financial year | One financial year |
| Where to submit | Bank, post office, corporate bond issuer | Same |
| PAN required | Yes, always | Yes, always |
When each form actually saves you money
Form 15G saves money only in narrow cases — a young adult with high FD interest but low overall income, or a homemaker or retired early pensioner with bank interest as the main income. If you have a salary above the basic exemption, Form 15G is not for you. TDS at 10% is better than a false declaration.
Form 15H saves money in many more cases. Senior citizens often have only FD, pension, and rental income. The 80TTB deduction plus the higher exemption push the taxable income below the limit even at 6-8 lakh of interest. Without Form 15H, the bank would cut TDS every quarter and force the senior to chase a refund for months.
How and when to file
Both forms are one page each. Most banks accept them through net banking — HDFC, SBI, ICICI, Axis, and PNB all have a "submit Form 15G/H" option in the tax centre section. Offline, pick up the form at any branch, fill it, and hand it in with a PAN copy.
File at the start of every financial year, in April. File again when you open a new FD or renew an old one. Forms filed mid-year cover only interest credited after the date of submission — anything earlier has already had TDS deducted.
Official formats and instructions are available on the Income Tax Department's portal.
Mistakes that make the form worthless
Four common errors cost real money every year.
- Filing Form 15G when your salary already puts you above the exemption limit. The declaration is legally wrong.
- Forgetting that Form 15G must stay below the exemption on interest alone, not just on net taxable income.
- Missing the separate submission for each bank. One form does not cover all your accounts.
- Not refiling after an FD renewal. The bank treats the renewed FD as a new contract.
The verdict
If you are under 60 and your total income (interest plus everything else) is within the basic exemption, use Form 15G. If you are 60 or above and your expected tax liability for the year is zero, use Form 15H. One form is age-bound, the other is liability-bound. Submit correctly and at the right time — that is the whole game.
FAQ
Can I file both Form 15G and Form 15H?
No. Each person files only one, based on age. Seniors use Form 15H; others use Form 15G if eligible.
What happens if I file Form 15G when I am not eligible?
The declaration is treated as false. Section 277 can impose a penalty and prosecution up to two years. The bank will also report the TDS shortfall to the department.
Frequently Asked Questions
- What is the main difference between Form 15G and Form 15H?
- Form 15G is for people below 60 years with total income below the basic exemption. Form 15H is for senior citizens aged 60 and above whose final tax liability for the year is zero.
- Can NRIs file Form 15G or 15H?
- No. Both forms are restricted to resident Indians. NRIs have a separate TDS regime at 30% plus surcharge on interest income.
- How often should I submit Form 15G or 15H?
- Once at the start of every financial year and again whenever an FD is renewed or a new one is opened. One form per bank branch.
- What happens if I submit Form 15G wrongly?
- The declaration is treated as false. Section 277 of the Income Tax Act can impose prosecution up to two years and a fine, and the bank may report the shortfall.
- Is PAN mandatory for Form 15G and 15H?
- Yes. Both forms require a valid PAN. Without PAN, the bank deducts TDS at 20% regardless of the declaration.