Eligibility for TDS savings schemes: Form 15H and Form 15G

Form 15H and Form 15G can be submitted by individuals and HUF if their total income is below the basic taxable limit. By submitting this form, we instruct the deductors to not deduct TDS when the interest income on the bank deposits exceeds Rs. 10,000. Depending upon your eligibility you may submit Form 15H and Form 15G. While the purpose of both the forms is similar, they are used by different types of the assessee. Here we discuss the difference between the two forms, eligibility for submission, and the scenarios where they are submitted. 

Difference between Form 15H and Form 15G:

Although both forms 15G and 15H serve the same purpose, there are a few stark differences between the two. They are

Point of differenceForm 15GForm 15H
Type of assesseeIndividual / HUFIndividual
Age criteriaBelow 60 years60 years and above
Pre-requisite / condition for form submissionInterest income should be lower than Rs. 2.5 Lakh

Interest income should be more than Rs. 40,000

No condition on a lower limit

Interest income should be more than Rs. 50,000

Timeline for submissionTo be submitted before payment of the first installment of interestTo be submitted before payment of the first installment of interest
Status of assesseeResident Indian taxpayerResident Indian taxpayer


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Eligibility for submission of Form 15H:

Form 15H is a form applicable for a declaration under section 197A(1C) of the Income Tax Act, 1961. The submission of the form is subject to certain eligibility criteria as mentioned below:

  • This form is applicable for individuals of age 60 and above, the age is as revised as of 2012
  • There should be proof of estimated tax for the previous year at zero
  • The form has to be submitted to each of the bank branches where the individual has the possibility of interest income. The form should also be submitted to other deductors from where the individual is expecting interest/income
  • Form 15H has to be submitted before the payment of the first installment of interest, in case you miss this, then the TDS would be deducted
  • Any TDS deduction without actual tax liability can be claimed back from the income tax department in the form of a tax refund
  • The individual submitting the form has to be a resident Indian

Eligibility for submission of Form 15G:

Form 15G is a declaration form applicable under section 197A (1) (1A) of Income-tax India, 1961. This form is applicable for both individuals and HUF (Hindu Undivided Family), however, is not applicable for firms and companies. It is to be submitted to the relevant deductors requesting to receive or claim the income (interest, commission as applicable) without deducting TDS. The eligibility criteria for submission of Form 15G are as given below:

  • The form can be submitted by individuals below the age of 65 years or by HUF 
  • Form 15G should be submitted before the first interest installment is paid, in case it is not submitted, the TDS will be deducted which can be claimed as an income tax refund subsequently
  • The form should be submitted only if the individual’s taxable income is zero if there are other reasons for the request for no TDS on the interest income, relevant details with supporting documents should be submitted, the bank/deductors will assess and accordingly deduct TDS
  • The individual submitting the form has to be a resident Indian

Submission of Form 15H and Form 15G apart from banks:

The most common usage of Form 15G/15H is in banks where it is used to avoid TDS on interest income. There may be other situations where both these forms can be used. Here are a few instances. 

Pre-mature EPF withdrawals

If any withdrawal is made for an amount exceeding Rs. 50,000 before completion of 5 years of continuous service, TDS is applicable. With a valid PAN card, the TDS applicable is 10%, without PAN, the rate applicable is 30%. The following exceptions are allowed by submission of form 15G/15H:

  • EPF account is transferred to another (cumulation of EPF account)
  • Termination of service due to ill-health, disability, or death of an employee
  • Employer winds up business or project leading to premature closure of EPF account of the employee

Interest income from corporate bonds and post office deposits

Interest income from corporate bonds beyond Rs. 5000 is subject to TDS. To avoid TDS, you can submit Form 15G or 15H as applicable.

Interest from post office deposits in excess of Rs. 40,000 (for assessee below 60 years) and Rs. 50,000 (for senior citizens), if your total income is lower than the basic taxable limit, then you can submit Form 15G or 15H to claim TDS exemption.

Insurance proceeds from an insurance policy and commission received from an insurance agency. Any maturity proceeds from a life insurance policy of more than Rs. 1 Lakh and any policy where the premium paid was greater than 10% of the sum assured, such maturity proceeds will be subject to TDS. The TDS applicable is 5% in case a valid PAN is submitted, else it is 20%. To avoid TDS, you will be required to submit Form 15G/H.

If you are an insurance agent, then any commission is more than Rs. 15,000 per year is subject to TDS. You should submit Form15G/H to your insurance agency to gain a TDS exemption.

TDS on rental income

Rental income that exceeds Rs. 2.4 lakh is subject to TDS from the rent paid, by submission of 15G or 15H, you can avoid such TDS, provided your overall tax liability is nil. 


Form 15H and 15G are legitimate ways by which you can save taxes or gain exemptions from TDS, provided your overall tax liability is nil. It saves you the energy of claiming a tax refund later on! These two forms are just 2 different means for a different set of people to achieve tax savings. To know more, click here.


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