What Is Form 15G/15H? Meaning, Eligibility, and 2026 Update

If your bank asked you to submit Form 15G or Form 15H, here's what you need to know. These self-declaration forms stop banks from deducting TDS on deposit interest when your income stays below the taxable threshold. Here's the key update: From April 1, 2026, both Form 15G and Form 15H are replaced by Form 121 under the new Income Tax Act 2025. Your eligibility hasn't changed, just the form name.

At a Glance

• Form 15G: for individuals below 60, HUFs, and trusts with income below exemption limits.
• Form 15H: for residents aged 60+ claiming nil tax liability on estimated income.
• Banks deduct TDS at 10% on FD interest above Rs 40,000 (general) or Rs 50,000 (seniors) unless you submit the form before the first interest credit.
• These forms cover multiple income sources: fixed deposits, EPF withdrawals, LIC returns, rental income over Rs 2.4 lakh, and post office deposits.
• From April 1, 2026, Form 121 replaces both forms.
• Submit the form separately to each bank branch where you hold deposits.

What Is Form 15G and What Is Form 15H?

Form 15G and Form 15H are self-declarations that prove to your bank you won't owe tax this year. Banks must deduct TDS from interest as a safety net. These forms tell the bank: your total income stays below the taxable limit, so no TDS is needed.

The key difference is age. Form 15H is only for individuals aged 60 and above. Form 15G is for everyone else, plus HUFs and trusts. Once you turn 60, you switch to Form 15H. Income eligibility on Form 15H is more relaxed because seniors often live on savings without triggering tax.

Who Is Eligible for Form 15G or Form 15H?

For Form 15H: You must be a resident aged 60+ with nil tax liability for the year, even if interest income alone exceeds the exemption limit.

For Form 15G: You must be below 60, a HUF, or a trust. Your total income must stay under the basic exemption (Rs 2.5 lakh for most). NRIs and companies cannot use either form.

Quick test: If you earned only FD interest below Rs 40,000 (or Rs 50,000 if 60+), TDS wouldn't apply anyway. But if interest exceeds those amounts, you need to submit the form before the first interest payment to prevent TDS.

When and How to Submit Form 15G or Form 15H?

Timing matters. Submit before your bank credits the first interest payment. Once TDS is deducted, the bank won't reverse it. You'll claim it as a credit in your annual ITR and wait for a refund.

Most banks accept submissions through net banking, email, or in person. Check your bank's website. Critical rule: submit separately to each branch where you hold deposits. An SBI submission in Mumbai doesn't cover your SBI account in Delhi.

What Happens If You Don't Submit Form 15G or Form 15H?

The bank deducts TDS at 10% on interest above the threshold and sends a Form 16A certificate at year-end. This is an advance tax payment, not a penalty.

You recover this in your ITR by entering it as a credit. The tax department refunds any overpayment, typically after several months.

If you submit falsely when your income exceeds the threshold, you face penalties under Section 277 of the Income Tax Act. Only submit when you genuinely expect income below the taxable limit. Also ensure your PAN is linked to your bank account; without it, TDS is deducted at 20% instead of 10%.

What Changed in 2026: Is Form 15G or Form 15H Being Replaced?

Yes. From April 1, 2026, Form 121 under the new Income Tax Act 2025 replaces both Form 15G and Form 15H. Eligibility stays the same. The age rule, income limits, and branch-wise submission requirements don't change. Only the form name changed.

Banks are updating portals to show "Form 121" instead of "Form 15G/15H." For financial year 2026-27 onwards, look for Form 121 in your bank's net banking menu. Contact support if confused about which form to use.

Frequently Asked Questions

Is Form 15G mandatory for a fixed deposit?

No, it's not mandatory. You can skip it and let the bank deduct 10% TDS. Recover it via your ITR as a credit and get a refund from the tax department. But submitting upfront prevents any deduction, so you keep your full interest income. It's practical if you want to avoid waiting for a refund.

What is the difference between Form 15G and Form 15H?

Form 15G applies to individuals below 60, HUFs, and trusts. Form 15H applies only to individuals 60+. Both prevent TDS when tax liability is nil. Form 15H has slightly more generous income eligibility because of the senior citizen category. From April 2026, both are replaced by Form 121.

Who needs to fill out Form 15H?

Only resident Indians aged 60+ with nil estimated tax liability for the year. NRIs, companies, partnerships, and anyone below 60 cannot use Form 15H. You must be a genuine resident expecting zero tax on your total income.

What happens if I don't submit Form 15G?

The bank deducts TDS at 10% on interest above Rs 40,000 (Rs 50,000 for 60+) and sends a Form 16A. Claim it as a credit in your ITR, and get a refund for any overpayment. Your interest is reduced by the deduction, and you wait months for the refund instead of keeping full interest upfront.

Can I submit Form 15G after TDS has already been deducted?

Yes, but it won't reverse past deductions. Late submission stops future deductions in that year, but earlier TDS must be claimed as a credit in your ITR. Submit before the first interest credit to prevent any deduction.

Do I need a separate form for each bank and branch?

Yes. Submit to each bank separately, even for different branches of the same bank. If you hold deposits at SBI, HDFC, and ICICI, submit to all three. This common oversight leads to unexpected TDS deductions.

What other income sources does Form 15G apply to?

Beyond fixed deposits, Form 15G applies to: EPF withdrawals (when you leave with <5 years service), LIC returns, post office deposits, rental income over Rs 2.4 lakh annually, and insurance commissions. Any TDS-liable income below your exemption limit can use Form 15G.

How do I switch to Form 121 from April 2026?

Check your bank's net banking menu for "Form 121" or "TDS Self-Declaration" for 2026-27 onwards. If you still see old form names, contact support to confirm migration to Form 121. The eligibility and process are identical; only the form name changed under the new Income Tax Act 2025.

Preserving Your Deposit Income

Form 15G and Form 15H preserve your full deposit income. Submit before the first interest credit, and you avoid waiting months for a tax refund.

If managing deposits across multiple banks feels complex, financial comparison tools can help simplify the process. When you explore deposit options or compare bank loan products on BankCreds, you'll better understand how TDS affects your net returns.

The 2026 transition to Form 121 is simple: just find the new form name in your bank's menu. Tax changes sound complicated, but this one requires no behavior change; only awareness that the form name is new.