Claim audit · FY 2026-27

“Submit Form 15G/15H to the bank and your FD interest becomes completely tax-free.”

Form 15G (for individuals below 60 and HUFs) and Form 15H (for senior citizens aged 60+) are declarations given to the payer so that no TDS is deducted under section 194A on interest. They are not exemptions — they merely shift the compliance burden from the bank to the taxpayer. The conditions are strict: for 15G, your estimated total income for the year must be below the basic exemption limit and your estimated tax liability must be nil; for 15H, your estimated tax liability must be nil. If you submit 15G/15H but end the year with taxable income above the exemption threshold, the declaration becomes invalid, the bank has no liability, and you must pay the tax through the ITR plus interest under 234B (if advance tax was due) and 234C (for deferred instalments), and a 234F fee for late filing. The bank still reports the interest in Form 26AS and AIS, so the department sees the income even without TDS. Worked example: a 65-year-old has Rs 6 lakh FD interest plus Rs 2 lakh pension. Old regime: gross Rs 8 lakh, section 80TTB deduction of Rs 50,000, net taxable Rs 7.5 lakh; basic exemption is Rs 3 lakh, so tax liability is positive — 15H was invalid from day one, TDS should have been deducted, and interest accrues on the shortfall. By contrast, a 55-year-old with only Rs 40,000 savings interest in a year has nil liability — 15G is legitimate, and no tax arises. Senior citizens can still use 15H when 80TTB plus other deductions bring the tax liability to nil. The safest reading: 15G/15H stop TDS, never stop tax.