"pagal he" = he is crazy "pagal ho" = you are crazy

पागल है Pāgala hai = nuts/mad/insane/is crazy

"pagal ho(पागल हो)" means u r mad ("ho" is always used when sentence starts with "tum"(people use it with "aap" also) in present tense ) complete sentence is (tum) pagal ho (तुम पागल हो ) pagal hai(पागल है) is sentence about someone who is pagal wah pagal hai (he/she is mad) ye pagal hai ladka pagal hai etc. keep adding nouns(singular) and pronouns(except i मैं and u तुम) sentence is correct .............. paagal hai for plural hai है will be changed to hain हैं -if sentence starts with मैं (main) it always ends with हूँ(hoon) in present tense eg correct usage will be मैं पागल हूँ [b]main[/b] pagal [b]hoon[/b] तुम पागल हो [b]tum[/b] pagal [b]ho[/b] in two cases above even if u dont say pronouns it is understood that what exactly u mean, or whom u r talking about

actually "ho" is used for second person and "he" is used for third person.