Avoid TDS on FD interest legally: How to use Form 15G and 15H in 2025

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You can stop banks from deducting TDS on your fixed deposit interest—if your total income is below the taxable limit. Banks usually deduct 10% tax (TDS) if your FD interest is more than Rs 40,000 in a year (Rs 50,000 for senior citizens). But if your entire income is less than the tax deductible limit—Rs 2.5 lakh for most individuals, Rs 3 lakh for senior citizens above 60, and Rs 5 lakh for super senior citizens above 80—you can legally save yourself from this deduction by filing Form 15G or Form 15H.

Form 15G is for those below 60 years, Form 15H is for senior citizens

If you are under 60 and expect your income to stay below the taxable limit, submit Form 15G. Senior citizens can submit Form 15H if they qualify. These are self-declaration forms you give to your post office or bank, asking them not to deduct TDS because your total income is not taxable.

Submit the forms at the beginning of each financial year

It's preferable to submit the form in April so that your bank does not begin deducting TDS. If you wait, some interest may already have TDS deducted—and although you can reclaim it by filing your income tax return, it's preferable not to let the deduction happen in the first place.

Both offline and online at most banks

You can either get Form 15G/15H from the Income Tax website and download it or fill it online if your bank offers this service. SBI, HDFC, ICICI and Axis are a few of the larger banks that enable you to do this through net banking. Ensure you provide your PAN—filing without it is not valid.

Do not misuse it—TDS is not equivalent to actual tax liability

These are to be submitted only if your total income is below the taxable limit. If you submit them dishonestly and your income is taxable, then also you will have to pay tax in the future—with interest or penalty. Submit it honestly to avoid trouble.

You will have to submit fresh forms each year

The exemption is not automatic. You will need to file a fresh Form 15G or 15H every financial year, even if your income remains unchanged. Also, file one form for every bank or post office where you receive interest income, including recurring deposits and corporate FDs.

FAQs

Q. Do I need to file the form every year?

Yes. Form 15G/15H is for one year only when filed. You need to file it each year if the conditions are relevant.

Q. Can I file this for corporate FDs?

Yes, but many companies handling fixed deposits also accept Form 15G/15H, but please confirm from institutional side also.

Q. Is there any limit for how many forms I can file?

No, but the total interest income and PAN details must be provided properly in all banks.