Why Banks Deduct TDS on FD Interest — And How to Stop It
Every financial year, millions of bank depositors and senior citizens in India have TDS deducted at 10% on their fixed deposit, recurring deposit, and savings account interest — even when their total annual income is well below the taxable threshold. Banks, post offices, and financial institutions are legally required to deduct TDS under Section 194A of the Income Tax Act when interest income exceeds ₹40,000 per year (₹50,000 for senior citizens). This reduces the net interest credited — even for taxpayers who owe absolutely zero income tax.
The solution is straightforward: Form 15G (for individuals below 60 years of age and HUFs) and Form 15H (for senior citizens aged 60 and above) are self-declaration forms under Sections 197A(1) and 197A(1C) of the Income Tax Act. When submitted at the beginning of the financial year, these forms legally obligate the payer — bank, post office, or company — to not deduct TDS on the specified income, ensuring the full interest amount is credited to the depositor's account.
The critical rule is timing: Form 15G/15H must be submitted before the first interest credit of the financial year — ideally on April 1 or as early as possible in April. TDS already deducted by the bank cannot be reversed — it can only be claimed as a refund while filing the income tax return. Missing the April deadline means waiting until ITR filing to recover the deducted amount, sometimes months later.
Taxvio, based in Khatauli (Muzaffarnagar, UP), provides complete Form 15G and 15H services — eligibility verification, total income computation across all sources, declaration preparation, and submission to all banks, post offices, and institutions where the client holds income-generating deposits. We also send annual renewal reminders and handle multi-bank submission for clients with FDs at multiple institutions — starting at just ₹499.
Form 15G vs Form 15H — Who Can File Which Form?
Below 60 Years
Form 15G
Self-declaration under Sections 197A(1) and 197A(1A) for resident individuals below 60 years, HUFs, Trusts, and AOPs. ALL conditions below must be satisfied simultaneously.
- ✅Resident individual below 60 years, OR HUF, Trust, or AOP
- ✅Total income from ALL sources must not exceed ₹2.5 lakh (old regime) or ₹3 lakh (new regime)
- ✅Tax computed on total income must be nil after all deductions
- ✅Must be resident — NRIs cannot file Form 15G
- ✅Must be renewed every financial year (valid only for one FY)
⚠️ Key trap: Total income must include ALL sources — salary, rent, other FDs, capital gains. Not just the FD where 15G is being filed.
60 Years & Above
Form 15H
Self-declaration under Section 197A(1C) exclusively for resident senior citizens. Has a more relaxed condition than Form 15G — making it accessible to more seniors.
- ✅Resident individual aged 60 years or above at any time during the FY
- ✅Tax calculated on total income must be NIL — income CAN exceed basic exemption if deductions bring tax to zero
- ✅Pension + interest + rental income can still qualify if 80C, 80D, standard deduction etc. eliminate tax
- ✅Must be resident — NRI senior citizens cannot file Form 15H
- ✅Must be renewed every financial year (valid only for one FY)
✅ Key advantage: A senior citizen with ₹6–7 lakh income can still file 15H if deductions bring tax to nil — unlike Form 15G which requires income itself to be below ₹2.5L.
Form 15G vs Form 15H — Complete Comparison
Filing the wrong form means TDS will still be deducted. Use this table to confirm which form applies to you.
| Parameter | Form 15G | Form 15H |
|---|---|---|
| Who can file | Resident individual < 60 yrs, HUF, Trust, AOP | Resident individual aged 60 or above |
| Age requirement | Below 60 at any time during FY | 60 or above at any time during FY |
| Income condition | Total income must NOT exceed ₹2.5L (old) / ₹3L (new) | Tax on total income must be Nil — income can exceed basic exemption |
| Can HUF file? | Yes — HUF can file Form 15G | No — Form 15H is for individuals only |
| Can NRI file? | No — only residents eligible | No — only residents eligible |
| Section under IT Act | Section 197A(1) and 197A(1A) | Section 197A(1C) |
| EPF withdrawal | Yes — Section 192A (premature withdrawal) | Not applicable for EPF |
| Validity period | 1 financial year — renew every April | 1 financial year — renew every April |
| Penalty for false filing | Section 277 — imprisonment 3 months to 3 years | Section 277 — imprisonment 3 months to 3 years |
TDS Thresholds — When Is Form 15G / 15H Required?
TDS kicks in when income crosses these thresholds. Filing 15G/15H before the threshold is reached ensures zero deduction for the full year.
| Income Type | Section | Threshold (Non-Senior) | Threshold (Senior 60+) | TDS Rate | Form Required |
|---|---|---|---|---|---|
| FD / RD Interest — Bank | 194A | ₹40,000 per bank per FY | ₹50,000 per bank per FY | 10% | 15G / 15H |
| FD Interest — Post Office | 194A | ₹40,000 per FY | ₹50,000 per FY | 10% | 15G / 15H |
| FD Interest — Company / NBFC | 194A | ₹5,000 per FY | ₹5,000 per FY | 10% | 15G / 15H |
| Dividend — MF / Stocks | 194 / 194K | ₹5,000 per FY | ₹5,000 per FY | 10% | 15G / 15H |
| NSS Withdrawal | 194EE | ₹2,500 per FY | ₹2,500 per FY | 10% | 15G only |
| EPF Withdrawal (< 5 yrs) | 192A | ₹50,000 | ₹50,000 | 10% | 15G only |
| LIC / Insurance Maturity | 194DA | ₹1,00,000 per FY | ₹1,00,000 per FY | 5% | 15G / 15H |
| SCSS / MIS Post Office Interest | 194A | ₹40,000 per FY | ₹50,000 per FY | 10% | 15H (60+) |
Where Must Form 15G / 15H Be Submitted?
Banks — FD / RD / Savings
Each bank branch where FDs are held needs a separate declaration. Many banks accept online 15G/15H through net banking or mobile app.
Post Offices
For interest on Post Office Time Deposits, Senior Citizens Savings Scheme (SCSS), Monthly Income Scheme (MIS), and NSC maturity.
Companies / NBFCs
For TDS on interest paid on company fixed deposits, non-convertible debentures (NCDs), and corporate bonds under Section 194A.
EPFO / Employer
For TDS on EPF withdrawals before completing 5 years of service (Section 192A). Only Form 15G — not 15H — applies here.
Insurance Companies
For TDS on life insurance maturity proceeds (Section 194DA) where premium paid exceeded 10% or 20% of the sum assured.
Mutual Funds
For TDS on dividends paid by mutual funds (Section 194K) exceeding ₹5,000 per financial year per AMC.
Critical Rules for Filing Form 15G / 15H — Avoid These Mistakes
Incorrect filing is one of the most common tax compliance errors. These rules prevent both illegal filing (false declaration) and missed TDS prevention.
Include ALL income sources
Total income must include salary, rent, all FDs across all banks, capital gains, and other income — not just the FD where 15G is being filed.
Submit before first interest credit
File on or before April 1. TDS already deducted cannot be reversed by the bank — only claimable as ITR refund.
Submit to every bank separately
A 15G at one bank does not protect FDs at other banks. Separate declarations needed for each institution and often each branch.
Renew every financial year
A form submitted in April 2025 is not valid for FY 2026-27. Fresh declarations must be filed every April without exception.
Aggregate all interest in Part I
Part I of the form requires the TOTAL estimated interest income from all payers — this aggregate is what must be below the exemption limit.
Payer reports to IT Department
Banks report all 15G/15H declarations quarterly to the Income Tax Department. These are cross-verified with your ITR — mismatches trigger scrutiny.
Consequences of Filing False Form 15G / 15H
Form 15G and 15H are legal declarations — filing them when ineligible is a criminal offence under the Income Tax Act with serious consequences.
⚠️ Section 277 Prosecution
Imprisonment 3 months to 3 years
Knowingly making a false declaration is a criminal offence. If tax evaded exceeds ₹25 lakh, imprisonment extends to 7 years.
⚠️ TDS Demand on Bank
Bank treated as defaulter
The payer (bank) is treated as assessee in default and liable for TDS not deducted plus interest under Section 201(1A).
⚠️ Interest & Penalty
Sections 234B and 234C interest
The declarant faces demand for income tax on full interest income plus interest for non-payment of advance tax.
⚠️ ITR Scrutiny Notice
Section 143(2) notice
AIS cross-verification of bank interest vs ITR is a primary trigger for scrutiny. Large interest income with false 15G is easily detected.
Taxvio's 5-Step Form 15G / 15H Filing Process
Our structured process ensures correct eligibility, accurate income computation, and timely multi-bank submission — so your FD interest is never reduced by TDS.
Eligibility Verification & Form Selection
We verify your age, residential status, and estimated total income from ALL sources — salary/pension, all FDs across all banks, savings account interest, rental income, and capital gains. For 15G, we confirm income is within the exemption limit. For 15H (senior citizens), we verify tax on total income is nil after all applicable deductions. This step prevents false declaration risk.
Consolidated Income Estimation Across All FDs
We compile estimated interest income from all FDs, RDs, savings accounts, and other interest-bearing instruments across all your banks and financial institutions. This consolidated annual estimate is a mandatory requirement in Part I of both Form 15G and 15H — it must reflect the total from all payers, not just one.
Declaration Preparation (Form 15G or 15H)
We prepare the Form 15G or 15H with all required details — your PAN, estimated income from this specific payer, aggregate estimated income from all sources, number and total amount of 15G/15H forms filed previously in the same year, and all other mandatory fields. The form is checked for accuracy before submission.
Submission to All Banks & Payers
The completed declarations are submitted to each bank branch, post office, mutual fund, EPFO, insurance company, or other payer where income is earned. We guide online submission through net banking where available and assist with physical submission for banks and post offices that require in-person filing.
Annual Renewal Reminder & Re-filing
Form 15G/15H validity expires on March 31 every year. We send renewal reminders to all clients in March and assist with fresh declarations for the new financial year — ensuring submissions happen before April's first interest credits. Clients with multiple FDs receive a consolidated renewal checklist.
Am I Eligible for Form 15G or 15H?
Answer a few quick questions to find out which form applies to you — and whether you qualify.
Include salary, pension, ALL FD interest, rent, dividends — all sources combined
Helping Depositors & Senior Citizens Save TDS Across India
"My bank was deducting TDS on my FD interest even though I pay no tax. Taxvio filed Form 15H and now I get full interest credited. Very helpful for senior citizens."
Savitri Devi (Age 67)
Khatauli
"I had FDs in 3 banks and TDS was being deducted from all three. Taxvio filed Form 15G across all banks and saved me from claiming refund every year in my ITR."
Rakesh Sharma
Muzaffarnagar
"As an HUF with FD income below the exemption limit, Taxvio filed Form 15G and ensured no TDS deduction. Very quick service and the fee was very reasonable."
Geeta HUF
Meerut
Form 15G / 15H Services Across India
Taxvio is based in Khatauli, Muzaffarnagar, UP and assists individuals, HUFs, and senior citizens with Form 15G and 15H filings across Noida, Delhi NCR, Meerut, Ghaziabad, and Mumbai — as well as pan-India online. We have particular experience helping retired senior citizens in semi-urban areas who have significant FD interest income but no tax liability, navigate the annual 15H process with their banks.
Frequently Asked Questions — Form 15G & Form 15H
What is Form 15G and who should file it?+
Who should file Form 15H and what is the key condition?+
When should I file Form 15G or 15H?+
Do I need to file Form 15G/15H at every bank?+
What if TDS was already deducted before I submitted Form 15G / 15H?+
Is it illegal to file Form 15G when I am not eligible?+
Can an HUF file Form 15G?+
File Before April — Save Full Year TDS
Stop Losing FD Interest to TDS —
File 15G / 15H Today
Don't let banks deduct TDS on interest income you don't owe tax on. Taxvio's eligibility check and Form 15G / 15H filing service starts at just ₹499. Multi-bank submissions, annual renewal reminders, and senior citizen support included.