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/learn/tds-form15g-15hIndian Taxation & Capital GainsCompliance4 min read
Bank FD Interest, TDS, and Form 15G / 15H
How to avoid wrongful tax deduction on your fixed deposits and recurring deposits.
Core Takeaways for Indian Investors
- ✓Banks deduct 10% TDS on FD/RD interest if annual interest exceeds ₹40,000 (₹50,000 for Senior Citizens).
- ✓If you fail to link PAN, the bank will deduct TDS at an aggressive 20% rate!
- ✓Form 15G is for individuals below 60 years whose total taxable income is below the taxable threshold.
- ✓Form 15H is for Senior Citizens (60+ years) whose net tax liability is nil.
- ✓Always verify your deducted TDS in Form 26AS / AIS (Annual Information Statement) on the Income Tax portal.
#1When Should You Submit Form 15G or 15H?
If your total annual income from all sources is less than the basic exemption limit, you can submit Form 15G/15H to your bank at the start of every financial year (April). This instructs the bank NOT to deduct TDS. However, falsely submitting 15G when you have taxable income is a punishable offense under Income Tax Section 277!
Knowledge Check: Test Your Understanding
1 QuestionWhich form should an 65-year-old Indian senior citizen submit to prevent bank TDS on their FD interest when their total income is not taxable?