Form 15G, Form 15H: Tax Saving on FD Interest Income

Form 15G and Form 15H are self-declaration forms wherein you submit the application form to the bank requesting not to deduct TDS on interest income. Various banks allow submitting these forms online from their official portal or mobile app. However, furnishing PAN is mandatory. Moreover, these forms are only for resident Indians. Non-resident Indians (NRIs) cannot use these forms to avoid TDS deduction.

• EPF Withdrawal: TDS is deducted on EPF withdrawal if the balance is over ₹50,000 and is withdrawn before 5 years of continuous service. In this case, you can submit Form 15G.  
• Income from Corporate Bonds: If the income from corporate bonds surpasses ₹5,000, then it is subject to TDS. However, you can submit Form 15G or 15H requesting the issuer not to deduct TDS.
• Income from LIC Policies: If the amount received from the LIC policy is over ₹1 lakh and the maturity amount is taxable, then 5% TDS is applicable. However, if your total income tax is zero, you can submit Forms 15G and 15H requesting not to deduct TDS.
• Income from Post Office Deposits: Income from post office deposits is also subject to TDS; hence, you can submit Form 15G and 15H. 
• Income from Rent: With effect from April 1, 2019, the tenant needs to deduct the TDS on rent exceeding ₹2.4 lakhs annually. However, if the tax on your total income is nil, you can submit Form 15G or Form 15H requesting the tenant not to deduct TDS.

• Name of Assessee (Declarant): Fill in your name and PAN number as per your PAN card.
• Status: Fill in whether you are an individual or a HUF.
• Previous Year: Fill in the current financial year you are filling out the form.
• Residential Status: You can only fill out this form if you are an Indian resident.
• Contact Details: Fill in your current address, email, telephone, and mobile number.
• Whether assessed to tax under the Income Tax Act, 1961?: If in any of the past 6 years your income has been above the taxable limit, then fill in “yes.”
• If yes, the latest assessment year you assessed: Fill in the latest year in which your income was above the taxable limit.
• Estimated income for which declaration is made: Fill in the total income (including interest income) on which TDS is not to be deducted.
• Estimated total income of the previous year (PY) in which income is mentioned in row 16 to be included: Calculate your total income from all sources, salary, stipend, interest income, or any other income you earned during the year.
  Note: Include the income mentioned in row 16 below.

• Details of forms filed other than Form 15G during the previous year, if any: Please provide the exact number of Forms you have filled and the total income pertaining to which the declaration is being filed.
• The aggregate amount of income for which Form 15G was filed: Fill in the total income for which you filed Form 15G during the previous year.
• Details of income for which declaration is filed: Fill in the identification number of relevant investment/account etc., nature of income, and Section under which tax is deductible, also fill in the fixed deposit account number, recurring deposit details, details of NSCs, life insurance policy number, etc.
• Signature of the Declarant: Sign the form, and if you are signing on behalf of HUF or the Association of Persons (AOP), fill in your capacity.
  Note: Do not submit Form 15G if income has to be clubbed with another person's income.

1. Name of Assessee (Declarant): Fill in your name and PAN number as per your PAN card.
2. Status: Fill in whether you are an individual or a HUF.
3. Previous Year: Fill in the current financial year you are filling out the form.
4. Residential Status: You can only fill out this form if you are an Indian resident.
5. Contact Details: Fill in your current address, email, telephone, and mobile number.
6. Whether assessed to tax under the Income Tax Act, 1961?: If in any of the past 6 years your income has been above the taxable limit, then fill in “yes.”
7. If yes, the latest assessment year you assessed: Fill in the latest year in which your income was above the taxable limit.
8. Estimated income for which declaration is made: Fill in the total income (including interest income) on which TDS is not to be deducted.
9. Estimated total income of the previous year (PY) in which income is mentioned in row 16 to be included: Calculate your total income from all sources, salary, stipend, interest income, or any other income you earned during the year.
   • Note: Include the income mentioned in row 16 below.
10. Details of all forms filled other than Form 15H during the previous year: Please provide the exact number of forms you have filled and the total income pertaining to which the declaration is being filed
11. The aggregate amount of income for which Form 15H was filed: Fill in the total income for which you filed Form 15G during the previous year.
12. Details of income for which declaration is filed: Fill in the identification number of relevant investment/account etc., nature of income, and Section under which tax is deductible, also fill in the fixed deposit account number, recurring deposit details, details of NSCs, life insurance policy number, etc.
13. Signature of the Declarant: Sign the form in your individual capacity.
    • Note: Do not submit Form 15H if income has to be clubbed with another person's income

You can download Form 15G and Form 15H from the below links:
Download Form 15G
Download Form 15H

Although most people file Form 15G and Form 15H when opening a deposit account. However, some might forget to submit them on time, resulting in a deduction of the TDS. In this case, you can do the following:

1. File Income Tax Return (ITR) to claim a refund of TDS: You can file ITR to get the refund of excess TDS deducted. Deductors never refund you the TDS, as they deposit the same to the Income Tax Department.
2. Submit Form 15G and Form 15H immediately: Usually, banks deduct TDS every quarter. Hence, submit Form 15G or Form 15H at the earliest so the bank will not deduct the TDS for the remaining financial year.

Below mentioned are some common TDS Sections

When you invest in FDs, the TDS is deducted from the interest that you earn if it is over ₹40,000 for non-senior citizens (₹50,000 for senior citizens). However, you can avoid it by submitting Form 15G or Form 15H to the bank. However, you need to ensure zero tax on your total income. This article is a detailed guide on Form 15G and 15H, wherein you also understand how to fill Form 15G and Form 15H.