Form 15G, Form 15H and Form 121: How to Avoid TDS on FD Interest

Form 121 replaces the older Forms 15G and 15H from 1 April 2026. Here is who can submit it, when, and how.

By FinMandi Team · Last updated 27 October 2026 · Information only, not legal or tax advice.

What is it?

Banks deduct TDS (10%) on interest above a limit. If your total income is low enough that you owe no tax, you can give your bank a self-declaration so that it does not deduct TDS. Until 31 March 2026 this was Form 15G (below 60) or Form 15H (60 and above). From 1 April 2026, banks are accepting a single Form 121 under the Income-tax Act, 2025, which replaces both.

Important: this form does not make your interest tax-free. It only stops the bank deducting TDS if you really have no tax to pay. If your income is taxable, you must still report and pay tax in your return.

Who can submit it?

Resident individuals below 60 and aged 60 and above, and resident HUFs, whose estimated tax for the year is nil.
Not allowed: companies, firms and non-residents.
You need a valid PAN. Without PAN the declaration is invalid and TDS is deducted at the higher rate.

What income does it cover?

Mainly interest on FDs and RDs, and also interest from post office schemes, dividends and some other receipts. Check the form for the exact list.

When and how often?

Submit at the start of each financial year (April), and again each year — it does not carry forward.
If you open a new FD mid-year, submit it at that time.
Submit before the interest is paid or credited. A late declaration does not refund TDS already deducted; you would claim it back in your return.
If you have deposits at more than one bank, submit a separate form to each bank.

How to submit

Log in to net banking or the bank app and look for “Form 15G/15H” or “Form 121” under tax or service requests.
Or download the form from your bank’s forms page, fill it, sign it and submit it at the branch.
Keep the acknowledgement.

Open your bank’s own forms page from our bank forms directory (SBI, HDFC, ICICI, Axis, PNB, Bank of Baroda, Canara, Kotak, IndusInd, Union Bank, IDFC FIRST).

Common mistakes

Submitting after interest has already been credited.
Missing or wrong PAN.
Forgetting to resubmit every year.
Declaring nil tax when your total income (including other interest) is above the limit. A false declaration can attract penalties.
Submitting to only one bank when you have FDs in several.

FAQ

Is Form 15G/15H still valid?

Banks have moved to Form 121 for the new tax year. Ask your bank which version it accepts for your deposit.

What is the TDS limit on FD interest?

For FY 2025-26 onwards, TDS applies once interest at a bank exceeds ₹50,000 a year (₹1,00,000 for senior citizens). See our FD rates page for how this applies. Check the current limit with your bank.

Can I submit it online?

Most large banks allow it in net banking or the app. Otherwise submit it at the branch.

Disclaimer: Rules and forms change, and each bank has its own version. This guide is general information, not tax, legal or banking advice. Confirm the current form and process with your bank before submitting. FinMandi is not affiliated with any bank. Never share your OTP, card PIN or CVV.

Sources

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