TDS under Section 194A

TDS stands for Tax Deducted at Source. The government implements TDS as a method to gather tax funds when income is produced instead of waiting until the annual tax period.

Under this provision any person who receives interest payments exceeding specific amounts is required to have tax deductions made by banks or tax payers prior to distributing the interest funds. This deducted amount is then deposited with the government as advance tax on the recipient’s behalf.

For example, if you have ₹60,000 as interest from a fixed deposit in a year, and the bank’s TDS limit is ₹40,000, they may deduct 10% of the extra amount as TDS. Early tax collection through this process stops evasion of tax obligations.

• Form 15G
  
  
• Form 15H

When and Why TDS Is Deducted

TDS is deducted when your earnings cross the limit set by the government for that type of income. This cutoff point for the majority of interest income is:

• ₹10,000 per year for general taxpayers
  
  
• ₹50,000 per year for senior citizens
  
  
• ₹5,000 in some other general cases (earlier limit)

The main idea behind TDS is to collect tax at the time of earning, so the taxpayer does not delay or avoid paying taxes later. But sometimes, individuals do not have taxable income. In such cases, TDS deduction causes unnecessary tax payments, and you may need to wait for a refund after filing your return.

Importance of Claiming TDS Exemption When Eligible

By providing Form 15G or Form 15H to the bank or institution, people whose incomes fall below the taxable level can terminate TDS. These forms inform the bank or payer that your income does not fall under taxable levels, so no TDS should be deducted.

This helps you receive your full interest income without any deduction and saves you from the long process of claiming a refund from the income tax department. Submitting these forms at the start of the financial year ensures smooth, full payments from banks or other sources.

What Are Form 15G and Form 15H?

15G Form Meaning and 15H Form Meaning

Individuals who are under 60 years old and earn below the basic exemption threshold (₹2.5 lakh or ₹3 lakh according to regime) can submit Form 15G for bank non-deduction of TDS from incomes such as bank interest.

Form 15H is similar in purpose but meant for senior citizens aged 60 years and above. It is used when their total income is also below the exemption limit, which is ₹3 lakh for those 60+ and ₹5 lakh for those above 80 years.

Both forms are self-declaration forms. You promise that your income is within non-taxable limits and request that no TDS should be deducted.

Who Can Submit Form 15G/H?

Form 15G:

• Must be a resident individual.
  
  
• It should be younger than 60.
  
  
• Total tax payable should be zero.
  
  
• The total amount of interest earned must fall below the exemption threshold.
  
  
• Cannot be used by companies or firms.

Form 15H:

• For people who are 60 years of age or older.
  
  
• Must also be a resident individual.
  
  
• Tax liability must be nil.
  
  
• There’s no limit on interest income, but total income must be under the basic exemption limit.

These forms are commonly submitted to banks, post offices, EPFO, and insurance companies where TDS might be deducted on payouts like interest or premature withdrawals.

Budget 2025 Update – New TDS Threshold Limits

If interest income falls below the specified threshold, TDS is exempt from deduction under Section 194A of the Income Tax Act. These limits have been raised with effect from FY 2025–2026, which will make it simpler for more people to submit Form 15G or 15H and prevent needless TDS.

Nature of Interest

Nature of Interest	Present Limit	Proposed Limit (FY 2025–26)
General (for all individuals, excluding banks)	₹5,000	₹10,000
From a Bank, Co-operative Society, or Post Office	₹40,000	₹50,000
For Senior Citizens	₹50,000	₹1,00,000

Also read: Professional Tax Registration - Quick, Easy and Simple

Eligibility Criteria for Form 15G and Form 15H

Criteria	Form 15G	Form 15H
Type of Taxpayer	Age < 60, resident individual, HUF, or trust (not including businesses and corporations)	A resident who is 60 years of age or older (a senior citizen)
Income Condition	Total income is tax-free, and total interest income is less than the exemption threshold (₹2.5–3 lakh, depending on the regime).	The same, however the exemption level is ₹3 lakh for those over 60 and ₹5 lakh for those over 80.
Resident Only?	Yes	Yes

What Are Form 15G and Form 15H?

Form 15G and Form 15H are self-declaration forms that banks along with EPFO and financial institutions accept to let taxpayers skip TDS from their interest earnings when their total income stays under particular limits.

Aspect	Form 15G	Form 15H
Applicable to	Residents who are younger than sixty. Not accessible to businesses or organizations.	Senior citizens who are 60 years of age or older.
Income Tax Status	Tax on total income must be zero.	Total tax liability should also be nil.
Interest Income Limit	Interest income must fall between ₹2.5 and ₹3 lakh, depending on the regime, which is the baseline exemption level.	Same, but limit is ₹3 lakh for senior citizens, ₹5 lakh for 80+ years.
Eligibility Restriction	Only for Indian residents. Not applicable to NRIs.	Also restricted to Indian residents only.
Purpose of Submission	To avoid TDS deduction on interest, EPF withdrawals, or deposits.	The rule exists to stop Tax Deducted at Source (TDS) collection from interest earnings of senior citizens.

When to Use Form 15G and Form 15H

Form 15G and Form 15H are most commonly used to prevent unnecessary deduction of TDS on interest and other specified incomes when the individual’s total income is not taxable. Here are key situations when these forms should be submitted:

1. To Prevent TDS on Fixed Deposit (FD) Interest
   
   Banks are required to deduct TDS if interest income on FDs exceeds the threshold limit set under Section 194A. If your total income is below the basic exemption limit, submitting Form 15G or Form 15H helps you receive the full interest amount without tax deductions.
   
   
2. To Avoid TDS on Provident Fund (PF) Withdrawal
   
   The PF account holder must pay TDS when they withdraw more than ₹50,000 before completing five years of continuous service. Submitting Form 15G enables you to prevent the TDS deduction when your total income stays under the taxable threshold.
   
   
3. To Stop TDS on Recurring Deposits
   
   Banks may deduct TDS on interest earned from recurring deposits if the amount crosses the threshold. Submitting Form 15G/15H ensures no tax is deducted if your overall income is not taxable.
   
   
4. For Rent or Other Payments Where TDS Is Applicable
   
   If rent paid exceeds ₹50,000 per month, the tenant may deduct TDS. In such cases, landlords whose total income is non-taxable may submit Form 15G or 15H to receive the full rent amount without deductions.

Form 15G for PF Withdrawal

Employees’ Provident Fund (EPF) savings are meant for long-term financial security. However, when the PF account is closed or withdrawn before 5 years of continuous service, and the amount exceeds ₹50,000, TDS at 10% is applicable as per the Income Tax Act.

EPFO Rules and TDS on Premature PF Withdrawal

• TDS is deducted at 10% if withdrawal exceeds ₹50,000 and PAN is furnished.
  
  
• If PAN is not available, TDS is charged at a higher rate (up to 30%).
  
  
• To avoid TDS, you must submit Form 15G (for individuals below 60) along with
  your withdrawal request.
  
  
• Form 15H is applicable for senior citizens under similar conditions.

Income Limit and PAN Requirement

To be eligible for Form 15G:

• Your total taxable income must be nil.
  
  
• You must be a resident Indian and under 60 years of age.
  
  
• PAN must be provided along with the withdrawal request. Without PAN, your
  Form 15G will not be valid.

Online vs Offline Submission

EPFO now allows both online and offline submission of Form 15G:

• Offline: You can submit the filled Form 15G at your employer’s HR department or directly at the EPFO office.
  
  
• Online: Log in to the EPFO Member Portal, fill the withdrawal form, and upload Form 15G during the claim process.

How to Fill Form 15G for PF Withdrawal

Only Part I of Form 15G needs to be filled by the individual. The second part is reserved for the institution receiving the form (in this case, EPFO).

Section-wise Breakdown of Form 15G (Part I)

• Field 1 to 4: Name, PAN, Status (individual), and Previous Year (e.g., 2025–26).
  
  
• Field 5: Residential status – tick “Resident.”
  
  
• Field 6 to 9: Contact details and estimated total income for the year (including PF).
  
  
• Field 10 to 14: Mention any previous declarations made and other sources of income.
  
  
• Field 15: Number of Form 15G submitted during the year.
  
  
• Declaration: Sign and date the form with place and verification of information.
  
  
  

Common Errors to Avoid

• Incorrect PAN or missing PAN.
  
  
• Filing Part II – not needed for the employee, only Part I is required.
  
  
• Entering wrong income estimates can lead to rejection or tax notices.
  
  
• Make sure the name and UAN/PF details match exactly with EPFO records. 
  
  

Also Read - Section 80G Deduction

 

Form 15H for Senior Citizens

How It Differs from Form 15G

The declaration form 15H was built specifically for elderly individuals who exceed 60 years of age. The main purpose of this declaration matches Form 15G because it enables taxpayers to prevent Tax Deducted at Source payments when they have no taxable income. Several distinct points separate the two forms from each other. These two systems share similar functions but they present distinct characteristics.

Two documents have fundamental differences that need to be noted:

• Senior persons must utilise Form 15H, while those under 60 should submit Form 15G.
  
  
• Interest income on Form 15G must be less than the basic exemption threshold, which varies per regime and ranges from ₹2.5 lakh to ₹3 lakh.
  
  
• The submission of Form 15H remains possible despite exceeding interest income thresholds when the total taxable income remains at zero.
  
  
• Senior citizens can benefit from higher basic exemption limits. People who are 60 years or older can use a ₹3 lakh exemption limit and those who reach age 80 qualify for a ₹5 lakh exemption.

How to Fill Form 15H (Step-by-Step)

Individual input is required for Part I of Form 15H, whereas institutional completion is required for Part II. The taxpayer only needs to fill out Part I.

Section-Wise Guide with Tips

1. Name and PAN: Provide your entire name as it appears in your PAN records together with your accurate PAN number.
   
   
2. Status: Mention "Individual".
   
   
3. Previous Year: "2025–26" should be written for the fiscal year 2025–2026.
   
   
4. Residential Status: Tick "Resident".
   
   
5. Address, Mobile Number, and Email: Provide and complete communication info.
   
   
6. Whether you were taxed for the previous six years: Mark "Yes" or "No" as appropriate.
   
   
7. Estimated The expected income for declaration: Specify the interest from fixed deposits or other sources.
   
   
8. The total financial year income: Should contain every income source.
   
   
9. Details of other Form 15H submitted: If submitting at multiple branches, mention total count.
   
   
10. Declaration: Sign and date the form with place of submission.
    

Online Form Filling via Banks and EPFO

Most banks have online versions of Form 15H. Here's how you can do it:

• SBI: Go to Net Banking > e-Services > Submit 15H.
  
  
• HDFC: Log in to HDFC, select Accounts, Tax Services, and then submit Form 15H.
  
  
• ICICI: Sign in > Form 15H > TDS/Tax Filing section.

For EPF withdrawal, Form 15H can also be submitted online via the EPFO UAN portal, especially for members withdrawing funds before completing five years of service.

How and Where to Send Forms 15G and 15H

Submission at Bank Branches and EPFO Offices

Form 15G or 15H, filled out and signed, can be sent straight to:

• Your bank branch where fixed deposits are held.
  
  
• The EPFO office (or employer) for PF-related TDS exemption.
  
  
• Insurance companies (for maturity of policies) if TDS is applicable.

Carry your PAN card and proof of income if requested.

When Should You Submit the Forms?

• Ideally, submit the form at the beginning of the financial year (April) or before the first interest payout.
  
  
• Submitting later in the year may result in TDS being deducted for earlier quarters, which would require filing a return to claim a refund.

Penalties and Consequences of False Declaration

Falsely declaring that your income is not taxable when it actually is can result in serious consequences. In accordance with Income Tax Act Section 277:

• False declaration is treated as furnishing false evidence.
  
  
• Punishment: If tax evasion exceeds ₹25 lakh, there might be a fine and a maximum sentence of seven years in prison.
  
  
• Smaller quantities carry a fine and a maximum sentence of three years in jail.

Make sure your disclosure is accurate and based on real income projections to avoid such penalties. Before submitting the form, get advice from a tax professional if you're not sure.

FAQ

1. What is Form 15G?

   A person under 60 years old may request that no TDS be deducted from their interest income using Form 15G, a self-declaration form, if their total income is less than the basic exemption amount. 

2. Who should apply for Form 15G?

   Resident individuals under 60 years without taxable income can use Form 15G to stop TDS deduction.

3. Is Form 15G mandatory for PF withdrawal?

   Form 15G is not mandatory, but it helps avoid TDS if you're withdrawing PF before 5 years of service and your total income is below the taxable limit.

4. Who is eligible for Form 15G/H?

   Form 15H is for senior citizens (60 years or older); Form 15G is for those under 60. In both cases, total income must be below the taxable threshold.

5. What is Form 15G/H?

   Form 15G or 15H declarations allow non-taxable persons to avoid TDS deductions, with Form 15G for non-seniors and 15H for senior citizens.

6. Who is eligible for the 15G form?

   Individuals under 60 years whose total income is below the basic exemption limit can file Form 15G.

7. Who should submit a 15H form?

   Resident senior citizens (60 years or older) whose total income is below the exemption limit can submit Form 15H to avoid TDS.

8. How to fill a 15H form sample?

   Enter your name, PAN, income details, and a declaration that your tax liability is zero in Part I of Form 15H.

9. How can I fill Form 15H online?

   Log in to your bank’s internet banking or EPFO portal, navigate to the ‘Tax Declaration’ or TDS section, and fill out Form 15H with your PAN and income estimate.

10. What is the limit of 15H for senior citizens?

    For ages 60–79 years, the exemption limit is ₹3 lakh; for ages 80 and above, it is ₹5 lakh. If income is within these limits, Form 15H can be submitted.