Form 15G / 15H Centralised Electronic Submission: One Declaration, All Banks (FY 2026-27 Guide)

For decades, salaried pensioners, senior citizens, and small depositors filed Form 15G / 15H one bank branch at a time, every April, just to stop a 10% TDS deduction on interest below the taxable threshold. From FY 2026-27, the Income-tax Department is moving 15G/15H to a centralised electronic submission route through the income-tax portal — one declaration covers all banks, NBFCs, post offices, and corporate bond issuers holding the declarant's PAN. The shift solves an old problem (forgotten branch-level submissions causing avoidable TDS) but creates a new one — the declaration is auto-cross-checked against AIS, and a mismatch with total interest income or with the basic-exemption threshold can disqualify the declaration retroactively. This guide explains who can submit 15G vs 15H, what changes under the centralised regime, and the threshold math business owners and senior-citizen parents need to know before clicking submit.

Form 15G vs 15H: The Critical Distinction

Both forms achieve the same outcome — non-deduction of TDS — but the eligibility test differs:

The two-test trap in Form 15G

Form 15G needs both tests to pass — and a lot of declarants miss the second one. If your salary plus other income brings your total income below the basic exemption but your aggregate interest itself crosses the basic exemption, you cannot submit 15G. Example: total income ₹2.5 lakh (below exemption), of which bank interest alone is ₹3.2 lakh — disqualified, because aggregate interest exceeds the threshold.

Form 15H removes this hurdle for senior citizens, recognising that retirees may have large interest income but use deductions (Section 80TTB up to ₹50,000, basic exemption, rebate under Section 87A) to bring tax liability to nil.

What's Changing Under Centralised Electronic Submission?

Under the legacy model, declarants printed Form 15G/15H, signed it physically, and submitted a separate copy at every bank branch, NBFC office, and registrar. Banks then uploaded an acknowledgement against the declarant's PAN to the income-tax portal (Form 15G/H reporting under Rule 29C). The problems:

• Forgotten branches deducted TDS that the declarant then had to claim as refund.
• NRIs and out-of-station retirees struggled with physical signature workflow.
• Mismatch between branch-level declarations and aggregate AIS triggered later notices.
• Inconsistent submission timelines (some banks demanded April, others mid-year) created confusion.

The centralised electronic submission model — phased in from FY 2026-27 — addresses these:

How the centralised flow works

1. Declarant logs into the income-tax portal (incometax.gov.in) with PAN-linked credentials.
2. Selects "Form 15G" or "Form 15H" from the Services menu.
3. System pre-fills the declarant's PAN, name, address, and prior-year ITR data.
4. Declarant enters estimated total income for the FY, estimated aggregate interest, and confirms eligibility tests.
5. The system validates against AIS data from prior years and flags inconsistencies before submission.
6. On submit, the form is digitally signed (DSC or Aadhaar e-Sign).
7. The Department auto-distributes the declaration to all banks / NBFCs / issuers mapped to the PAN via existing TDS reporting linkages.
8. Declarant receives a unique acknowledgement reference (URN) per declaration; the same URN can be quoted to any branch or institution for record.

The branch-level submission route remains available as a fallback, but the centralised route becomes the default for new declarations from FY 2026-27.

The AIS Cross-Check: Why a Wrong Declaration Bites Back

Under the centralised model, the declaration is matched against the declarant's Annual Information Statement (AIS) in real time. If aggregate interest reported by all reporting entities (banks, NBFCs, post offices, bond issuers) exceeds the threshold the declarant claimed, the system raises a flag.

• During submission — the portal shows a "Possible eligibility mismatch" warning based on prior-year AIS. The declarant can still submit but takes responsibility.
• Mid-year — if aggregate interest visible in AIS crosses the threshold, the Department notifies the declarant and the deductors. From the next interest payment onwards, TDS resumes.
• Year-end — at ITR filing, the system re-validates. If actual income exceeded the threshold despite the declaration, the declarant pays the tax with interest under Section 234B/234C.
• Penalty exposure — wilful false declaration attracts Section 277 prosecution (3 months to 7 years + fine) plus Section 271AAB penalty.

The Threshold Math Every Declarant Should Run Before Submitting

Run these numbers for FY 2026-27 before filing 15G/15H:

For Form 15G (age below 60)

• Estimated total income from all sources (salary, business, interest, rent, capital gains) — call it T.
• Less: Chapter VI-A deductions (80C, 80D, etc., if opting old regime). Call result T1.
• T1 must be below the basic exemption: ₹3 lakh (new regime FY 26-27 unless revised) or ₹2.5 lakh (old regime).
• Separately, aggregate of all interest receipts in the FY must itself be below the basic exemption.
• Both tests must pass. Either failing means you cannot submit 15G.

For Form 15H (age 60 or above)

• Estimated total income (T). Apply Chapter VI-A deductions (80C, 80D, 80TTB up to ₹50,000).
• Compute tax on the resulting figure under the chosen regime.
• Apply rebate under Section 87A (₹25,000 new regime up to ₹7 lakh; ₹12,500 old regime up to ₹5 lakh — subject to FY 26-27 Finance Bill).
• Resulting tax liability must be NIL.
• The aggregate interest test does not apply to 15H, which is why senior citizens with large FD interest can use 15H if they manage other income.

When Form 15G/15H Does Not Work

1. Section 194N (TDS on cash withdrawal) — explicitly excludes 15G/15H. The only relief is qualifying as an ITR-filer (restores ₹1 crore threshold from ₹20 lakh). Read the Section 194N guide for details.
2. Section 194Q (TDS on purchase of goods) — buyer-side TDS, declarant-form regime not designed for it.
3. NRO/NRE account interest for NRIs — NRIs cannot file 15G/15H. Section 195/197 routes apply (lower-deduction certificate).
4. Mutual fund redemption / capital gains (Section 194K) — 15G/15H prevents TDS on MF dividend distribution only, not on capital gains.
5. Where total income exceeds basic exemption — regardless of TDS deduction. The declaration is invalid; deduction or assessment can be reopened.

How Banks Will Process the New Centralised Declarations

From the bank's perspective, the workflow simplifies:

1. Customer's PAN is already on file as part of KYC and TDS reporting (Form 26Q).
2. Income-tax Department's TIN-NSDL portal pushes the customer's 15G/15H status to the bank via the existing TRACES interface.
3. Bank's TDS engine reads the declaration status against the PAN before computing TDS on every interest credit.
4. Mid-year revocation (where AIS triggers system flag) is pushed to the bank within 24-48 hours; TDS resumes from the next interest credit.
5. Bank no longer collects physical 15G/15H forms; reduces document storage and operational risk.

Customers who want to file branch-by-branch can still do so for the transitional period, but the bank's system treats the centralised declaration as authoritative if both exist for the same PAN and FY.

The Family-Level Strategy: Splitting Investments Across PANs

Senior-citizen households often pool retirement savings under one earner's name. This concentrates interest income above the threshold and forces TDS deduction (refundable but operationally painful). A simple split across the household's PANs can restore 15H eligibility:

Important caveat: Section 64 clubs spouse and minor-child income with the transferor where the original asset was a gift without consideration. Adult-child transfers do not attract clubbing. Document gift deeds and ensure the recipient has independent ITR filing where applicable.

Common Mistakes to Avoid

1. Filing 15G when interest itself exceeds basic exemption — second test failure. Invalid declaration.
2. Filing 15G/15H as an NRI — not eligible. Use Section 197 lower-deduction certificate instead.
3. Filing physical forms after centralised submission — overwrites or causes conflict at the bank's reporting layer.
4. Forgetting to revise declaration mid-year — if income increases (sale of property, new income source), withdraw 15G/15H proactively from the portal.
5. Assuming 15G/15H prevents all TDS — Section 194N, 194Q, 195 are not covered.
6. Missing the senior-citizen 80TTB — ₹50,000 deduction on bank/post office interest is a separate relief on top of 15H.
7. Filing 15H when total tax liability is not NIL — false declaration. The bank will deduct anyway after AIS reconciliation.

How Bizeract Helps Households and Small Businesses

We run annual tax-planning reviews for retirees, salaried professionals, and small business owners — including 15G/15H eligibility math, optimal PAN allocation for joint households, and AIS reconciliation before ITR filing. Explore our finance services or check our first-time ITR filing guide if you're starting the financial year cleanly.

Frequently Asked Questions

What is the difference between Form 15G and Form 15H?

Form 15G is for resident individuals or HUFs aged below 60 whose total income (after Chapter VI-A deductions) is below the basic exemption limit and whose aggregate interest income is also below that limit. Form 15H is for resident individuals aged 60 or above whose total tax liability for the year is NIL after rebates and deductions. Senior citizens use 15H; younger declarants use 15G.

Can I submit Form 15G/15H online from FY 2026-27?

Yes. The Income-tax Department is rolling out centralised electronic submission via the income-tax portal from FY 2026-27. A single online filing distributes the declaration to all banks, NBFCs, and reporting entities mapped to the declarant's PAN. Physical branch-level submission remains available as fallback.

Will Form 15G/15H stop Section 194N TDS on cash withdrawal?

No. Section 194N explicitly excludes Form 15G/15H declarations. Lower-deduction certificates under Section 197 are also not available for 194N. The only legal way to preserve the ₹1 crore threshold is to qualify as an ITR-filer for any one of the three preceding assessment years.

What happens if my income exceeds the threshold after filing 15G/15H?

Two consequences. First, the declaration becomes retroactively invalid; pre-deducted TDS that you saved is reversed via assessment and you pay the tax with interest under Sections 234B and 234C at ITR filing. Second, if the false declaration was wilful, the Department can initiate prosecution under Section 277 (3 months to 7 years + fine). Withdraw the declaration from the portal as soon as income trajectory changes.

Can NRIs file Form 15G/15H to avoid TDS on NRO interest?

No. Forms 15G and 15H are available only to resident individuals (and HUFs in the case of 15G). NRIs cannot use these. Where the actual tax liability is below the standard withholding rate, an NRI can apply for a lower-deduction certificate under Section 197 before the start of the financial year through the income-tax portal.

How does the AIS cross-check prevent wrong declarations?

Under the centralised electronic regime, the income-tax portal validates the declared income estimate against the declarant's AIS (Annual Information Statement) from prior years and against live reporting from banks during the year. A material divergence triggers a warning during submission and, if confirmed mid-year, the system pushes a revocation to all deductors and TDS resumes from the next interest credit.

Is there a penalty for filing the wrong Form 15G/15H?

Yes. Wilfully false declaration under oath attracts Section 277 (prosecution: 3 months to 7 years plus fine) and Section 271AAB penalty (between 30% and 60% of the additional tax). Inadvertent mistakes can be corrected by withdrawing the declaration via the portal; the system treats it as a course-correction rather than a punitive event. Reasonable cause is a defence under Section 273B.