Form 15G and 15H: How to Save TDS on Interest Income in 2026

 Form 15G and 15H: How to Save TDS on Interest Income in 2026

Introduction

Every year, banks and financial institutions deduct TDS (Tax Deducted at Source) on interest earned from savings accounts, fixed deposits, recurring deposits, and other financial instruments. While this ensures tax compliance, many individuals may end up paying TDS even if their total income is below the taxable limit.

To prevent unnecessary TDS deduction, the Income Tax Act provides Form 15G and 15H. Submitting these forms allows eligible taxpayers to instruct banks not to deduct TDS on interest income. This is particularly helpful for small taxpayers and senior citizens who want to manage their finances efficiently.

What is Form 15G?

Form 15G is a declaration form for individuals below 60 years of age whose total income is below the taxable limit. By submitting this form, you can instruct your bank or financial institution not to deduct TDS on interest income from fixed deposits, recurring deposits, or other approved investments.

Key Points of Form 15G

• Applicable for individuals below 60 years

• Total income must be below taxable limit

• Only one declaration per financial institution is allowed

• Can be submitted for multiple deposits, provided conditions are met

• Prevents TDS deduction on interest income

Form 15G is widely used by salaried individuals, students, and non-senior citizens to save TDS on small interest earnings.

What is Form 15H?

Form 15H is specifically designed for senior citizens aged 60 years or above. Unlike Form 15G, Form 15H does not require total income to be below the taxable limit. Senior citizens can submit this form if they expect their total tax liability to be zero after deductions.

Key Points of Form 15H

• Applicable for individuals aged 60 years or above

• Ensures no TDS is deducted if total tax liability is nil

• Can be submitted for multiple banks or deposits

• Especially useful for retired individuals relying on interest income

• Must be submitted before TDS deduction

Senior citizens benefit significantly from Form 15H because banks automatically deduct 10% TDS on fixed deposit interest exceeding ₹50,000 per year. Submitting Form 15H avoids this deduction.

Eligibility Criteria

Before submitting Form 15G or 15H, ensure you meet the following conditions:

Form 15G Eligibility:

• Age below 60 years

• Total income for the financial year below taxable limit

• Interest income from deposits in banks, post office, or other financial institutions

Form 15H Eligibility:

• Age 60 years or above

• Tax liability for the financial year must be zero

• Applicable for interest income exceeding TDS threshold

How to Submit Form 15G and 15H

Submission of Form 15G/15H is simple and can be done online or offline:

Offline Submission

1. Visit your bank or financial institution.

2. Request Form 15G or 15H.

3. Fill in details such as name, PAN, account number, and interest expected.

4. Submit to the bank before interest payout or TDS deduction.

Online Submission

Many banks now allow online submission via net banking:

1. Login to your net banking account.

2. Navigate to TDS/Tax declaration section.

3. Select Form 15G or 15H.

4. Fill details and submit digitally.

Online submission saves time and ensures TDS is not deducted automatically.

Benefits of Form 15G and 15H

Submitting these forms provides multiple advantages:

• Avoid unnecessary TDS deduction on interest income

• Improve cash flow as you get full interest without waiting for refund

• Easy to submit online with bank portals

• Reduces compliance burden and saves paperwork

• Applicable for multiple accounts if eligibility conditions are met

Common Mistakes to Avoid

• Submitting the form after TDS is deducted (refund will take time)

• Providing incorrect PAN or personal details

• Submitting for deposits not eligible for TDS exemption

• Exceeding eligibility criteria (total income above taxable limit for Form 15G)

Always double-check your details and submit the form before TDS deduction to save time and avoid errors.

Conclusion

Form 15G and 15H are simple yet powerful tools to save TDS on interest income in India. Submitting these forms ensures that eligible individuals receive their full interest without waiting for a tax refund.

Whether you are a salaried individual, a student, or a senior citizen, understanding and using these forms helps in effective tax planning and better cash flow management.

Make sure to submit the forms before interest payout to maximize benefits and enjoy hassle-free TDS savings in 2026.You can contact us at +91 8989977769 for any query or if you require our services to prepare a project report or a bank loan