Form 15G, Form 15H and Form 121: How to Save TDS on Interest Income

Form 15G and Form 15H are self-declaration forms used by taxpayers to prevent TDS deduction on certain incomes such as bank interest, dividends, rent, or pension when their total tax liability for the financial year is nil. 

These forms are submitted to banks or financial institutions under the Income Tax Act, 1961, allowing eligible taxpayers to receive income without TDS deduction, provided they satisfy the prescribed conditions. Under the Income Tax Rules, 2026, Form 15G & 15H have been merged into a single new Form 121.

Unified Form 121 From April 1, 2026

With effect from 1st April 2026, Form 15G and 15H were replaced and merged into a single Form 121 that will be applicable for Tax Year 2026-27 and onwards. The purpose remains the same to avoid TDS on interest income. 

What is Form 15G?

Form 15G is a self-declaration form that individuals can submit to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income. By submitting this form, the taxpayer declares that their total income for the financial year is below the basic exemption limit, and therefore no tax is payable on their income.

Form 15G is generally used by individuals below 60 years of age and Hindu Undivided Families (HUFs) to ensure that TDS is not deducted on interest earned from sources such as fixed deposits or recurring deposits.

What is Form 15H?

Form 15H is a self-declaration form that senior citizens (aged 60 years or above) can submit to banks or financial institutions to avoid Tax Deducted at Source (TDS) on interest income. By submitting this form, the taxpayer declares that their total tax liability for the financial year is nil, so the payer should not deduct TDS on the interest earned.

Form 15H is commonly used by senior citizens who earn interest from fixed deposits, recurring deposits, or other investments, but whose overall income falls within the non-taxable limit after considering deductions.

What is Form 121?

Form 121 is the new unified self-declaration form in India that replaces Form 15G and 15H with effect from 1st April 2026. It allows resident individuals to prevent TDS deduction on interest, dividends, and othe income by declaring that their total income is below the taxable limit. 

Form 121 can be filed by resident taxpayers irrespective of their age. 

Difference Between Form 15G, Form 15H and Form 121

TDS Sections Where Form 15G/15H Can Be Used

Who is Eligible for Form 15G and 15H

1. Form 15G (For individuals below 60 years)

Form 15G can be submitted to prevent TDS deduction in the following situations:

• Individual or HUFs
• Taxpayers below 60 years of age
• Total income below the basic exemption limit
• Zero tax liability

2. Form 15H (For senior citizens)

Form 15H can be submitted if:

• Taxpayers aged 60 years or above
• Tax liability is zero

Form 15G & Form 15H PDF Download

Taxpayers can download Form 15G and Form 15H from their respective bank's website, EPFO website or through the income tax portal. 

How to Submit Form 15G & Form 15H

1. Online

Taxpayers can submit Form 15G & Form 15H online through their respective bank's website through the below steps;

• Login to your bank’s net banking
• Go to TDS declaration and Form 15G/15H section
• Fill details such as PAN, estimated income and other details.
• Submit digitally

2. Offline

Taxpayers can also download Form 15G or Form 15H, fill iin all the details manually and submit the form at the respective bank branch. 

When and where to submit Form 15G or 15H

1. When to Submit

From 15G and Form 15H submitted Ideally at the start of every financial year (April 1st) to avoid TDS on eligible incomes.

2. Where to Submit

• Banks (for interest income)
• EPFO (for early PF withdrawals)
• LIC (for maturity proceeds)
• Post Offices (on deposit interest)
• Tenants (for rent payments)
• Insurance companies (for agent commission)
• Mutual fund houses or companies (for dividends)
• Corporate bond issuers

Do not submit Form 15G, if your income has to be clubbed with someone else. Interest income from an FD for a non-earning spouse or a child has to be clubbed with the income of the depositor. In such a case Form 15G is not valid.

PAN of the depositor is mandatory and TDS should be deducted in the name of the depositor.

Where Can You Submit Form 15G or Form 15H Apart From Banks

While these forms can be submitted to banks to make sure TDS is not deducted on interest, there are a few other places too where you can submit them.

1. TDS on EPF withdrawal

• TDS is deducted on the EPF balance if withdrawn before 5 years of continuous service. 
• If you have had less than 5 years of service and plan to withdraw your EPF balance of more than Rs.50,000 you can submit Form 15G or Form 15H. 
• However, you must fulfill the conditions (listed above) to apply for these forms. 
• It means the tax on your total income including the EPF balance withdrawn should be nil.  

2. TDS on income from corporate bonds

• If you hold corporate bonds, TDS is deducted is on them if your income from them exceeds Rs 5,000. 
• You can submit Form 15G or Form 15H to the issuer requesting non-deduction of TDS.  

3. LIC maturity proceeds

• From 1st September 2019, TDS is 5% on the amount of income comprising the proceeds paid or payable upon maturity. 
• In case of failure to submit PAN details of the deductee to the LIC companies, TDS is to be deducted at the rate of 20%.
• You can submit Form 15G/Form 15H to request that no TDS be deducted since the tax on your total income is nil. 

4. TDS on post office deposits

• Post offices that are digitalized also deduct TDS and accept Form 15G or Form 15H, if you meet the conditions applicable for submitting them.   

5. TDS on rent

• TDS is deducted on rent exceeding Rs 2.4 lakh annually. 
• If the tax on your total income is nil, you can submit Form 15G or Form 15H to request the tenant to not deduct TDS.

6. TDS on Insurance Commission

• TDS is deducted on insurance commission, if it exceeds Rs 15,000 per financial year. 
• However, insurance agents can submit Form 15G/Form 15H for non-deduction of TDS if tax on their total income is nil.

7. TDS on Dividends

• If the dividend income exceeds Rs. 10,000 then TDS is required to be deducted. 
• Form-15G / Form-15H can be submitted for non/lower deduction of TDS.

Illustrations

1. Form 15G

Meena is 35 years old and lives in Delhi. In FY 2025–26, she does not have any salary or business income. She has only a fixed deposit in the bank, which gives her interest income of Rs. 2,10,000 for the year.

Since Meena’s total income is less than the basic exemption limit of Rs. 2,50,000 under the Old Tax Regime, she does not have to pay any income tax. However, as per income tax rules, the bank will still deduct 10% TDS on her interest income under Section 194A.

To avoid this deduction, Meena fills and submits Form 15G to her bank in April (at the start of the financial year). As a result, the bank credits the full interest amount to her account without deducting TDS.

2. Form 15H

Mr. Sharma, aged 65, lives in Mumbai. In FY 2025–26, he earns Rs. 2.8 lakh as interest from his fixed deposits and Rs. 50,000 as dividend income. Under the Old Tax Regime, after claiming deductions under Section 80C for his investments of Rs. 1,50,000, his taxable income becomes Rs. 1.8 lakh , which is below the basic exemption limit for senior citizens (Rs. 3 lakh).

Since his total income results in nil tax liability, Mr. Sharma is eligible to submit Form 15H to his bank at the beginning of the financial year. By doing so, the bank will not deduct TDS on his interest income under Section 194A, and he will receive the full amount directly in his account.

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

If Form 15G and Form 15H are not submitted by taxpayers, then TDS will be deducted automatically on the payments. However, refunds against the TDS deducted can still be claimed by filing an ITR. 

What to Do If You Forgot to Submit Form 15G or 15H

A lot of taxpayers forget to submit Form 15G and Form 15H on time. In such a situation, the bank might have already deducted the TDS. Based on your situation, you can do any of the following.

1. File your Income Tax Return to claim TDS refund

• The only way to seek refund of excess TDS deducted is by filing your income tax return. 
• Banks or other deductors cannot refund TDS to you, since they have already deposited it to the income tax department. 
• Income tax department will refund excess TDS, after you file an income tax return. 

2. Submit Form 15G and Form 15H immediately

• Most banks deduct TDS every quarter. If you forget to submit Form 15G or Form 15H, don’t worry. 
• Submit it at the earliest so that no TDS is deducted for the remaining financial year. 
• To claim refund of excess TDS deducted, start filing your return on ClearTax.

Penalty for Filing a False Declaration

Submitting false declaration in Form 15G, 15H or 121 is a serious offence under the Income Tax Act. A taxpayer submitting a false declaration or incorrect information knowingly may be prosecuted under Section 277. 

As per Section 277, if the tax evasion exceeds Rs. 25 lakh, the individual may face rigorous imprisonment ranging from 6 months to 7 years along with a fine. In other cases, the punishment can include imprisonment from 3 months to 2 years along with a fine.