What Is 15G and 15H? Eligibility and Usage

When investors ask me what is 15G and 15H, I answer it in one line: they are self-declaration forms that tell the payer not to deduct TDS on interest because my total tax for the year will be zero. Used correctly, these forms improve cash flows, especially for savers who rely on interest from fixed deposits, debentures, and listed corporate bonds in the bond market.

Quick definitions

• Form 15G: A declaration by a resident individual below 60 years (and not a company or firm) stating that their estimated tax liability for the financial year is nil.
  
  
• Form 15H: A declaration by a resident senior citizen (60+ years) stating that their estimated tax liability is nil.
  
  

Neither form reduces tax on its own; they simply prevent premature TDS where no tax is due in the first place. If I am actually liable to tax, these forms aren’t meant for me.

Who can submit—and who cannot

I use the following checks before submitting:

1. Residential status: Both forms are for residents. Non-residents cannot use 15G/15H.
   
   
2. Age: Below 60 → consider 15G; 60 or above → 15H.
   
   
3. Tax outlook: I estimate my total income (salary, pension, interest, capital gains, etc.) and subtract eligible deductions. If my final tax payable is nil, I qualify to file the relevant form. If any tax is payable, I should not file these declarations.
   
   
4. Nature of recipient: Companies and firms cannot file 15G/15H.
   
   

Where these forms help

Banks, NBFCs, companies, and registrars often deduct TDS on interest if thresholds or rules trigger it. Typical use cases in my experience:

• Bank deposits: TDS may apply on interest; senior citizens get a higher threshold. Submitting the right form at the start of the year helps avoid deduction when my tax is nil.
  
  
• Corporate bonds and listed NCDs: Issuers or their registrars may deduct TDS on interest payouts. If I qualify, I submit 15G/15H to the issuer/RTA or as instructed in the corporate action notice so that my full interest is credited.
  
  
• Other fixed-income instruments: Wherever TDS is possible, these forms are considered—provided my yearly tax remains zero.
  
  

How I use them, step by step

1. Estimate income early: Before April or at the time of investment, I project my income and deductions honestly.
   
   
2. Pick the correct form: 15G for below 60; 15H for 60+.
   
   
3. Submit at the right place:
   
   

• For bank FDs/RDs, I submit to the bank branch or through net banking where available.
  
  
• For bonds/debentures, I follow the issuer’s/RTA’s process (online portal, email, or physical).
  
  

1. Do it at the start of the FY: Submitting early prevents TDS from the very first payout.
   
   
2. Renew every year: These declarations are valid for one financial year; I update them annually.
   
   
3. Keep proof: I save acknowledgments for my records and for any future verification.
   
   

Good practices and cautions

• Be truthful: A false declaration can invite penalties. I never file 15G/15H if I expect taxable income.
  
  
• Mid-year changes: If my income later rises and tax becomes payable, I plan for advance tax or accept that TDS will apply on future payouts.
  
  
• If TDS is already deducted: I claim credit in my income-tax return and receive a refund, if due.
  
  
• PAN and details: I ensure PAN, contact information, and investment folios are accurate; mismatches can delay credit.
  
  

Why this matters for fixed-income investors

For many households, interest is a monthly lifeline. Avoiding unnecessary TDS keeps that cash available for expenses and reinvestment while staying fully compliant. As I build my debt allocation in the bond market, understanding what is 15G and 15H—and using them correctly—helps me align cash flows with goals, without waiting months for refunds. The forms are simple, but the judgment behind them should be careful: estimate honestly, submit early, and review every year.