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TDS on Interest & Form 15G/15H: Complete Compliance Guide

Master TDS rules on interest income and use Form 15G/15H correctly. Avoid tax notices, manage cash flows, and ensure proper compliance with step-by-step guidance.

Published September 19, 202516 min read

TDS on Interest and Form 15G/H: Avoiding Unpleasant Surprises

Interest is taxable at slab and banks deduct TDS in many cases. File the right forms only when eligible.

When Banks Deduct

  • TDS applies on bank FD interest above threshold for residents. Co‑operative and post office rules can differ. Check current limits.

Form 15G and 15H

  • Use these self‑declarations only if your total income is below the basic exemption limit. 15H is for senior citizens.
  • Submitting when not eligible invites mismatch and interest at filing.

Hygiene

  • Reconcile interest in AIS and 26AS. Plan advance tax if interest is large.