The Income Tax Act allows individuals to prevent unnecessary deduction of tax at source (TDS) by submitting a self-declaration in prescribed forms—Form 15G or Form 15H—to the payer of income. These forms enable eligible taxpayers whose total estimated income is below the taxable threshold to receive income without TDS being deducted.
Form 15G – Applicable to resident individuals (below 60 years) and Hindu Undivided Families (HUFs) whose estimated total income is below the basic exemption limit and whose tax liability for the financial year is nil.
Form 15H – Applicable to resident senior citizens (aged 60 years or above) when their estimated total income, after considering the rebate under Section 87A, results in no tax payable.
By submitting these declarations, taxpayers confirm that their income is below the taxable limit and that TDS is not required to be deducted on certain payments.
Eligible taxpayers can submit Form 15G or Form 15H to the payer to request non-deduction of TDS on specified types of income. However, if the estimated income changes during the financial year, a new declaration must be submitted.
A resident individual can file Form 15G under:
Section 194 – Dividend income
Section 194EE – National Savings Scheme (NSS) withdrawals
The declaration can be made if:
The income from the above sources does not exceed the basic exemption limit, and
The total tax liability for the year is nil.
Such taxpayers can file Form 15G for the following types of income, provided their estimated total income is below the exemption limit and tax liability is nil:
| Section | Nature of Income |
|---|---|
| 192A | Accumulated balance due to an employee |
| 193 | Interest on securities |
| 194A | Interest other than on securities |
| 194D | Insurance commission |
| 194DA | Life insurance policy payments |
| 194-I | Rent |
| 194K | Income in respect of units |
Resident senior citizens (aged 60 years or above) can file Form 15H under the following provisions if there is no tax payable after rebate under Section 87A:
| Section | Nature of Income |
|---|---|
| 192A | Payment of accumulated balance due to an employee |
| 193 | Interest on securities |
| 194 | Dividend income |
| 194A | Interest other than on securities |
| 194D | Insurance commission |
| 194DA | Life insurance policy payments |
| 194EE | National Savings Scheme payments |
The declaration must be furnished in duplicate, either in paper form or electronically, after proper verification.
Once the declaration and PAN are submitted, the payer shall not deduct TDS on the relevant income.
To ensure transparency, the payer (deductor) must assign a Unique Identification Number (UIN) to each declaration.
Structure of UIN:
Prefix – “G” for Form 15G and “H” for Form 15H (e.g., G000000001 or H000000001)
Financial Year – For which the declaration applies
TAN – Tax Deduction and Collection Account Number of the payer
The payer must digitize and upload all declarations quarterly on the Income Tax e-filing portal (https://www.incometax.gov.in/iec/foportal/) under their digital signature:
| Quarter | Upload Deadline |
|---|---|
| Q1, Q2, Q3 | Within 15 days of quarter-end |
| Q4 | Within 30 days of quarter-end |
The payer must also include the UIN details in the quarterly TDS statement, even if no tax was deducted during the quarter.
For audit and verification purposes, the payer must retain every Form 15G or Form 15H received for seven years from the end of the financial year in which it was obtained.
Income-tax authorities may request these forms during scrutiny or assessment to verify their validity. Failure to preserve or upload these forms correctly can lead to TDS mismatches and compliance issues for the deductor.
Form 15G / 15H is a legitimate mechanism to avoid TDS when total income is below the taxable limit.
Senior citizens should use Form 15H; all others use Form 15G.
The payer must issue a UIN, upload declarations quarterly, and retain them for 7 years.
Incorrect filing or non-compliance can attract penalties and lead to mismatches in TDS reporting.
Filing Form 15G or 15H is a simple yet crucial step for individuals with income below the taxable limit to avoid unnecessary TDS deductions. However, it also places compliance obligations on payers to maintain accurate records, upload declarations on time, and ensure transparent reporting. When used correctly, these forms help both taxpayers and payers maintain seamless tax compliance under the Income Tax Act.
How can we help? *
