What is Section 80TTB and how does it benefit Indian Senior Citizens investing in FDs?

Section 80TTB of the Income Tax Act allows resident senior citizens (aged 60+) to deduct up to ₹50,000 of interest income earned from bank fixed deposits, recurring deposits, and post office time deposits. In addition, no TDS is deducted under Section 194A by banks if annual interest remains under ₹50,000.

How does DICGC insurance protect bank fixed deposits in India?

The Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary, insures all deposits up to a statutory maximum of ₹5,00,000 (Rupees Five Lakhs) for both principal and interest per depositor per bank in the same capacity. This covers Public Sector, Private, and Scheduled Small Finance Banks.

Why do Small Finance Banks offer up to 9.0% - 9.5% on Senior Citizen FDs?

Small Finance Banks offer higher interest rates to mobilize retail liability funding for local credit operations. As RBI Scheduled Commercial Banks, their deposits enjoy identical ₹5 Lakh DICGC insurance as large PSU banks like SBI.

How can senior citizens prevent 10% TDS deduction using Form 15H?

Resident senior citizens whose estimated total income results in zero tax liability can submit Form 15H at the beginning of the financial year. Once accepted with a valid PAN, the bank is legally barred from deducting TDS.

What is the difference between Corporate Fixed Deposits and Bank FDs?

Bank FDs are covered by DICGC insurance up to ₹5 Lakhs. Corporate FDs (issued by NBFCs like Bajaj Finance) are not covered by DICGC and rely purely on credit ratings from agencies like CRISIL/ICRA.

Can I submit Form 15H if my total interest exceeds the basic exemption limit?

Yes. Unlike Form 15G (which requires total interest income to stay below the basic tax exemption limit), senior citizens submitting Form 15H are only required to show that their final calculated tax liability for the financial year will be NIL (taking into account Chapter VI-A deductions like Section 80C, 80D, 80TTB, and rebate under 87A).

When is the best time to submit Form 15G or Form 15H?

Submit Form 15G or 15H in the first week of April at the start of every new financial year. If you open a new fixed deposit mid-year, submit the form at the time of booking to ensure the bank flags your customer ID before quarterly TDS runs.

Taxation & 80TTB5 min readVerified for FY 2025-26

Form 15G and Form 15H Guide: How to Stop TDS Deductions on Bank Fixed Deposits

Form 15G and Form 15H are self-declaration forms submitted under Section 197A of the Income Tax Act to request that banks do not deduct 10% TDS on your interest income.

Venkatesh Ramanathan

CFP®, CFA

Chief Fixed Income Strategist

Published: 01 Mar 2025

Updated: 10 Mar 2025

Key Takeaway Summary

Statutory Authority

Income Tax Act, 1961 & RBI Master Directions

Primary Target

Form 15G and Form 15H

Investor Segment

Indian Retail Depositors & Senior Citizens (60+)

What are Form 15G and Form 15H?
Form 15G vs Form 15H: Eligibility Comparison
Step-by-Step: How to Submit Form 15H via Net Banking
Frequently Asked Questions (FAQs)

#What are Form 15G and Form 15H?

Under Section 194A of the Indian Income Tax Act, banks are statutorily mandated to deduct **10% Tax Deducted at Source (TDS)** whenever annual interest income exceeds specified thresholds: - **₹50,000** for Senior Citizens (Aged 60+) - **₹40,000** for Non-Senior Citizens

If your total annual income is below the taxable threshold, having the bank deduct TDS causes unnecessary cashflow blockage, requiring you to wait until ITR filing to claim a refund from the Income Tax Department.

**Form 15G and Form 15H** are statutory self-declarations under Section 197A that instruct the bank: *"My total income is below the taxable threshold; please credit my interest in full without deducting TDS."*

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#Form 15G vs Form 15H: Eligibility Comparison

Parameter	Form 15G	Form 15H
Applicable Age	Below 60 Years	60 Years and Above (Senior Citizens)
Eligible Entities	Resident Individuals & HUFs	Resident Senior Citizens Only
NRIs Allowed?	No (NRIs cannot submit 15G)	No (NRIs cannot submit 15H)
Interest Income Cap	Must be $\le$ Basic Exemption Limit (₹2.5L/₹3.0L)	No Interest Cap (Only net tax must be NIL)
Validity	One Financial Year (Valid till March 31)	One Financial Year (Valid till March 31)

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#Step-by-Step: How to Submit Form 15H via Net Banking

Almost all major scheduled banks (SBI, HDFC, ICICI, PNB, Canara Bank, Axis Bank) now allow paperless submission of Form 15G/15H:

1**Log into Net Banking:** Navigate to 'Service Requests' or 'Tax Centre'.
2**Select Form 15G / 15H:** Choose Form 15H (if 60+) or Form 15G.
3**Verify Customer ID & PAN:** Ensure your PAN is correctly linked; declarations without a valid PAN trigger mandatory 20% TDS under Section 206AA.
4**Input Estimated Annual Income:** Enter your estimated total income and the total count of fixed deposit accounts.
5**Authenticate with OTP:** Complete Aadhaar OTP or mobile OTP verification.
6**Save Acknowledgment:** Download the URN (Unique Reference Number) receipt for your records.

Related Topics:Avoid TDS on bank FDForm 15H eligibility rulesSection 197A self declarationNet banking submit 15HForm 15G download

Frequently Asked Questions

Clear Answers for Depositors

Form 15H is reserved exclusively for resident senior citizens aged 60 years or above. Form 15G is for resident individuals under 60 years of age and Hindu Undivided Families (HUFs). Companies, LLPs, and Non-Resident Indians (NRIs) are not permitted to submit Form 15G or 15H.

Venkatesh Ramanathan

CFP®, CFA

Chief Fixed Income Strategist

Venkatesh has 18+ years evaluating Indian debt securities, banking regulations, and retirement cashflow structuring for senior citizens.

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Form 15G and Form 15H Guide: How to Stop TDS Deductions on Bank Fixed Deposits

Venkatesh Ramanathan

Table of Contents

#What are Form 15G and Form 15H?

#Form 15G vs Form 15H: Eligibility Comparison

#Step-by-Step: How to Submit Form 15H via Net Banking

Clear Answers for Depositors

Venkatesh Ramanathan

Calculate Your Exact Net Yield