Things You Need to Know About Form No. 15G for Fixed Deposits

When investing in fixed deposits (FDs) at financial institutions like Bajaj Finserv, it’s essential to understand how to manage the tax implications of your investments. One critical tool for this purpose is Form No. 15G, a declaration form that can help prevent the deduction of tax at source on the interest income you earn. 

In this article, we will delve into what Form No. 15G is, its features, benefits, eligibility criteria, and the top ten things you need to know about using this form for your fixed deposits.

What is Form No. 15G?

Form No. 15G is a self-declaration form used by individual depositors to ensure that no tax is deducted at source (TDS) on interest income from fixed deposits if their total income is below the taxable limit. This form is utilized under the provisions of Section 197A of the Income Tax Act, 1961, of India. Banks and other financial institutions require this form to avoid TDS on interest if the total interest income does not exceed the basic exemption limit.

Origin and Purpose

Form 15G was introduced by the Income Tax Department of India as a mechanism to facilitate better tax compliance and to ease the process of managing the tax liability for individuals and certain other entities like Hindu Undivided Families (HUFs) and trusts.

The primary purpose of the form is to prevent the hassle of tax recovery and refunds for those whose income is below the taxable threshold but might be subject to tax deduction at source (TDS) on interest from deposits in banks or post offices.

Features of Form No. 15G

  • Purpose: Specifically designed to prevent banks from deducting TDS on interest income for those whose total income is below the taxable threshold.
  • Validity: Valid for one financial year, implying that it needs to be submitted each year as long as the depositor is eligible.
  • Applicant Criteria: Used by individuals below the age of 60 years, HUFs, and Trusts (not companies or firms).
  • Conditionality: The total estimated income calculated, including interest income, should not exceed the taxable income limit for that fiscal year.

Benefits of Form No. 15G

  • Tax Avoidance on Interest: Enables eligible depositors to receive full interest without tax deduction at source, thus not reducing their income from fixed deposits.
  • Improved Cash Flow: By preventing TDS, the form allows depositors to benefit from the entire interest amount without delays typically associated with tax refunds.
  • Ease of Use: Simple to fill and submit, making it accessible for individual depositors to handle their tax liabilities without professional help.
  • Financial Planning: Helps in better financial planning with the assurance that interest income will not be decreased by taxes if income criteria are met.

Eligibility for Form No. 15G

  • Age: Applicable for individuals below the age of 60. Senior citizens must use Form No. 15H.
  • Residency: Must be an Indian resident.
  • Tax Liability: Should not have any tax liability i.e., the estimated total income for the year including interest income should be less than the basic exemption limit.
  • Income Level: Total interest income for the year should not exceed the individual’s basic tax exemption limit.

Top 10 Things You Should Know About Form No. 15G

  1. Submission Timing: Should be submitted at the beginning of the fiscal year or at the time of opening the FD to ensure no TDS is deducted from the very first interest instalment.
  2. Not Just for FDs: While commonly associated with FDs, Form 15G can also be used for savings account interest, recurring deposit interest, and EPF withdrawals before five years.
  3. PAN Mandatory: Providing your Permanent Account Number (PAN) is mandatory when submitting Form 15G. Failure to provide PAN can lead to TDS at the highest applicable rate.
  4. Multiple Accounts: If you have FDs across different branches of the same bank or different banks, you need to submit a Form 15G at each branch/bank.
  5. Renewal: Since the form is valid for one financial year, it needs renewal every year with accurate and current financial details.
  6. Accuracy in Estimation: The estimated income should be accurate. Underestimating your income to avoid TDS can lead to penalties.
  7. Interest Amount: It’s important to estimate the interest income from all your deposits accurately while filling out Form 15G.
  8. Digital Submission: Many banks, including Bajaj Finserv, offer the option to submit ForOne critical tool for this purpose is Form No. 15G, a declaration form that can help prevent the deduction of tax at source on the interest income you earn.One critical tool for this purpose is Form No. 15G, a declaration form that can help prevent the deduction of tax at source on the interest income you earn.m 15G online, making the process quicker and easier.
  9. Record Keeping: Always keep a copy of the submitted Form 15G and acknowledgement from the bank for your records.
  10. Legal Implications: False declaration in Form 15G to avoid TDS can lead to fines and prosecution under the Income Tax Act.


Form No. 15G is a valuable tool for managing the tax implications of interest income from fixed deposits, especially for those whose total income falls below the taxable limit. By understanding and correctly utilising Form 15G, depositors can enhance their financial management and ensure they maximise their interest income without incurring unnecessary tax liabilities. 

Always remember to fill out the form accurately and submit it timely to benefit from its provisions. With careful planning and compliance, investors can effectively manage their tax obligations and maintain optimal cash flow from their investments.