The End of 15G and 15H: Navigating the New Unified Form for TDS Exemptions

In a significant move toward simplifying tax compliance, the Central Board of Direct Taxes (CBDT) and the Ministry of Finance have announced a major overhaul of the self-declaration process used to avoid Tax Deducted at Source (TDS). For decades, taxpayers have relied on Form 15G and Form 15H to ensure that banks and other deductors do not subtract tax when their total income falls below the taxable threshold. However, starting April 1, 2026, these two distinct forms will be scrapped in favor of a single, unified form designed to streamline the process for all eligible taxpayers.

As a Chartered Accountant, I view this as a progressive step toward the government’s goal of ‘Ease of Living’ and ‘Ease of Doing Business.’ By merging these forms, the tax department aims to reduce filing errors, eliminate confusion between age-related eligibility, and modernize the reporting framework for deductors. This blog explores the nuances of this transition, who stands to benefit, and how you can prepare for the new regime.

The Transition: From Fragmentation to a Unified Regime

Currently, the framework for avoiding TDS on interest and other incomes is split based on the age of the taxpayer. Form 15G is applicable to individuals under the age of 60 and Hindu Undivided Families (HUFs), while Form 15H is exclusively reserved for senior citizens (those aged 60 and above). This bifurcation often led to administrative hurdles, where taxpayers would mistakenly submit the wrong form, resulting in unnecessary TDS deductions and subsequent refund claims during Income Tax Return (ITR) filing.

Why the Change is Happening Now

The decision to introduce a single form from April 2026 stems from the need for digital integration. The existing system requires deductors to process two different formats and report them separately to the department. A unified form allows for a standardized data entry system, making it easier for the Income Tax Department’s portal to pre-fill data and verify the validity of the declarations against the taxpayer’s Permanent Account Number (PAN).

Eligibility and the New Framework: Who Can File?

While the form itself is changing, the underlying principle of Section 197A of the Income Tax Act remains the same. The primary objective is to prevent the deduction of tax at source if the individual’s total estimated income for the financial year is less than the basic exemption limit. However, it is vital to understand the subtle differences in eligibility that will likely be integrated into the new unified form.

• Basic Exemption Limit: For individuals under the New Tax Regime, the exemption limit has seen significant hikes. The unified form will require taxpayers to declare their estimated total income, ensuring it stays within the permissible non-taxable brackets.
• Condition for Form 15G (Current): To file the current 15G, the tax on total income must be nil, AND the total interest income must be less than the basic exemption limit.
• Condition for Form 15H (Current): Senior citizens can file if their net tax liability is nil, even if their interest income exceeds the basic exemption limit.

The new unified form is expected to have smart fields that automatically apply these logic sets based on the date of birth provided, ensuring that a senior citizen and a younger taxpayer can use the same document without falling foul of different statutory requirements.

How to Prepare for April 2026 and Avoid TDS Easily

With the implementation date set for April 2026, taxpayers have sufficient time to align their financial records. Avoiding TDS effectively requires more than just submitting a form; it requires accurate tax planning and timely submission. Under the new system, the process is expected to be even more digital-centric, potentially linking directly with net-banking portals for seamless submission.

Strategic Steps for Taxpayers

• Verify PAN Linking: Ensure your PAN is linked with your Aadhaar and updated with your bank. Any declaration (old or new) is invalid if the PAN is inoperative, leading to TDS at a higher rate of 20%.
• Monitor Total Income: Keep a close eye on your aggregate income from all sources—savings interest, fixed deposits, rental income, and dividends. The unified form will require an honest estimation of these figures.
• Timely Submission: The best practice is to submit the declaration at the start of the financial year (April). Waiting until the end of a quarter often results in the bank already having processed the TDS.

The CA’s Perspective on Compliance

From a compliance standpoint, the replacement of 15G and 15H with a single form will significantly reduce the ‘notice burden’ on taxpayers. Often, mismatches between 15G/H filings and the Annual Information Statement (AIS) trigger automated inquiries. A unified, digitally-tracked form will ensure that the data reflected in your AIS/Form 26AS is consistent with your declarations. This change isn’t just about a new piece of paper; it’s about a more robust, transparent, and user-friendly tax ecosystem.