No More 15G vs. 15H Confusion!
Big Rules Changes Effective from April 1, 2026: Here’s the Update
1. What were 15G and 15H anyway?
These forms were a way of telling the bank: "My total income is too low to be taxed, so please don't cut TDS from my FD interest."
For individuals under 60 years.
Specifically for Senior Citizens (60 and above).
2. The Big Changes (Starting April 2026)
- One Simple System Instead of separate forms, a Unified Declaration System has been launched. No more running to branches with physical papers.
- Automatic Renewal If your income hasn't changed much, your declaration stays valid for the next year too. Fewer trips to the bank!
- Smart Tech Linking Banks now sync your data directly from the tax portal using PAN and Aadhaar. If your income is below the limit, the system detects it automatically.
3. Why the 'New Tax Regime' is a Game Changer
The New Tax Regime is now the standard choice. Since you don't pay any tax on income up to ₹7 lakh, much more people are eligible to receive full FD interest without any TDS deductions.
4. No More Waiting for Refunds
In the past, if a bank accidentally cut TDS, you had to wait months for a refund. The 2026 updates have simplified threshold limits so banks are less likely to cut tax for small savers in the first place.
5. What do you still need to do?
Even with simpler rules, keep these two things in mind:
- Link PAN & Aadhaar: If not linked, the bank must cut 20% tax automatically.
- Go Digital: Check your bank’s app once a year to ensure your "Digital Declaration" is active.
The government’s goal is "Ease of Living" ensuring seniors and savers keep their hard-earned money without the yearly paperwork!
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