TDS (Tax Deducted at Source) is a tax that gets deducted from interest payable on various investments, such as fixed deposits, corporate bonds, and insurance commission. Form 15G and Form 15H are self-declaration forms that an individual submits to the bank or issuer requesting not to deduct TDS on interest income as their income is below the taxable limit. These forms can be submitted to banks, post offices, or NBFCs to avoid TDS deduction on fixed deposits. The exemption limit for TDS deduction on fixed deposits is Rs. 40,000 for individuals except senior citizens, and for senior citizens, the exemption limit is Rs. 50,000. Individuals with a total taxable income of less than Rs. 2.5 lakh are eligible for exemption from paying TDS on their FDs.

Other places where Form 15G and Form 15H can be submitted to avoid TDS deduction include EPF withdrawal, LIC premium receipts, and rent exceeding Rs 2.4 lakh annually. If you are a TDS deductor, the Income-tax Act requires you to allot a Unique Identification Number or UIN to everyone who submits the Form 15G/Form 15H. You must file a statement of Form 15G/Form 15H on a quarterly basis and must retain these forms for 7 years.

To avail TDS waiver on fixed deposits, one has to submit Form 15G and Form 15H to the concerned bank or issuer. These are self-declaration forms that one must submit to the bank where they hold an FD account, requesting not to deduct TDS on FD interest income because their income is under the basic exemption limit.