Key Highlights
- Form 15G: For resident individuals below 60 years — no TDS on interest, dividends, rent, EPF withdrawal
- Form 15H: For senior citizens (60+) — same purpose, less restrictive conditions
- Condition 15G: Tax on estimated total income = Nil AND income from all sources does not exceed basic exemption
- Condition 15H: Tax on estimated total income = Nil (no income ceiling condition for seniors)
- Submit to: banks, post offices, mutual funds, EPF, debtors — at the start of each Tax Year
- False declaration: penalty and prosecution under ITA 2025
Legal Reference
Section 405 (Form 15G/15H declarations), Income Tax Act, 2025 | Corresponds to Section 197A of ITA 1961 | CBDT Notification on electronic 15G/15H
1. Form 15G: Conditions for Eligibility
All three conditions must be satisfied simultaneously:
- The declarant is a resident individual (not NRI, not company, not firm)
- The declarant is below 60 years of age
- Tax on estimated total income for the Tax Year is nil (after all deductions)
- Total interest income from all sources does not exceed the basic exemption limit (Rs 4 lakh for new regime; Rs 3 lakh for old regime up to 60 years)
2. Form 15H: Senior Citizen Declaration
Form 15H is available to resident individuals aged 60 or above. The conditions are simpler:
- The declarant is a resident senior citizen (60+)
- Tax on estimated total income for the Tax Year is nil
There is no income ceiling condition for Form 15H — even if the senior has high interest income, as long as tax on total estimated income is nil (due to deductions, investments, etc.), Form 15H can be submitted.
3. Where to Submit
| Income Type | Submit To |
|---|
| Bank FD/RD/savings interest | Every bank branch where FD is held |
| Post office interest | Post office |
| Company fixed deposit interest | Company treasurer |
| Dividend from companies/MFs | Registrar/MF house |
| EPF withdrawal | EPFO online portal |
| Rent above Rs 50,000/month | Tenant (Section 397 payer) |
4. Validity and Renewal
Form 15G/15H is valid for one Tax Year only. A fresh declaration must be submitted at the beginning of each Tax Year (April). For banks, submit the form in April for all FDs held. If you have multiple branches or multiple banks, a separate form must be filed with each paying authority. Banks report 15G/15H submissions to the IT Department annually — false declarations are detectable.
5. Risk of False Declaration
If a person submits Form 15G/15H when they are not eligible (income exceeds limit, or tax is not nil), it constitutes a false declaration under ITA 2025. The consequences include:
- Interest under Sections 415-420 on tax not paid
- Penalty under Chapter XXI
- Prosecution under Chapter XXII for wilful false statement
6. Why TaxClue
Submitting the correct form, ensuring eligibility, and tracking all declarations across banks is essential for tax compliance. TaxClue advises on Form 15G/15H eligibility and assists with tax planning to keep income within nil-tax thresholds. Contact us for income tax advisory and ITR filing under ITA 2025.
Disclaimer
This article is for general informational and educational purposes only. It does not constitute legal, financial, or professional tax advice. Readers are advised to consult a qualified Chartered Accountant or tax professional before making any decisions. TaxClue Consultech Pvt Ltd accepts no liability. All case studies and examples in this article are illustrative only and do not represent actual persons or transactions.
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❓ Frequently Asked Questions
What is Form 15G and who can submit it?
Form 15G is a self-declaration submitted to income payers (banks, companies, mutual funds) asking them not to deduct TDS. It can be submitted by resident individuals below 60 years of age whose estimated total income for the Tax Year is nil after all deductions, and whose total income from interest and other sources does not exceed the basic exemption limit. If these conditions are met, the payer cannot deduct TDS even if the payment exceeds the normal TDS threshold.
What is the difference between Form 15G and Form 15H?
Form 15G is for resident individuals below 60 years of age — it has a double condition: tax on total income must be nil AND total interest income must not exceed the basic exemption limit. Form 15H is for resident senior citizens (60+) and has a simpler single condition: tax on estimated total income must be nil. There is no income ceiling for Form 15H — a senior citizen with income above the basic exemption can still submit 15H if total tax liability is nil due to deductions.
How often must Form 15G/15H be submitted?
Form 15G and Form 15H are valid for one Tax Year only and must be submitted fresh at the beginning of each Tax Year (typically in April). A separate form must be filed with each paying authority — every bank branch where FD is held, every mutual fund, the EPFO portal, etc. Failure to submit at the start of the year may result in TDS being deducted before the declaration is received, requiring a refund claim through the ITR.
Can NRIs submit Form 15G or 15H?
No. Form 15G and Form 15H are available only for resident individuals. Non-Resident Indians (NRIs) cannot submit these declarations. TDS on income paid to NRIs is governed by different provisions and DTAA. NRIs who want lower TDS must apply for a formal lower/nil TDS certificate under Section 398 of ITA 2025 (Form 13) or provide the payer with a Tax Residency Certificate and Form 10F to claim DTAA benefits directly.
What happens if I submit Form 15G when I am not eligible?
Submitting Form 15G or 15H when you do not meet the eligibility conditions constitutes a false declaration under ITA 2025. Consequences include: interest on tax that should have been deducted; penalties under Chapter XXI; and potential prosecution under Chapter XXII for wilful false statements. All 15G/15H declarations are reported by payers to the IT Department — cross-referencing with your ITR allows detection of ineligible submissions.
