Form 15G: Who Can Submit It and how It Stops TDS
Table of Contents
Tax gets deducted on your fixed deposit interest even when you owe no tax at all. You get it back eventually, after filing a return and waiting for the refund. Form 15G exists so that money never leaves your account in the first place.
The form is a self-declaration you give to a bank, employer or other payer, stating that your estimated tax liability for the year is nil. On that basis, they do not deduct TDS on interest or other specified income paid to you.
Key points
- Form 15G is for residents under 60. Senior citizens use Form 15H
- It stops TDS. It does not make the income tax free, and you may still need to file a return
- It is valid for one financial year, and must be resubmitted each year
- Submit it separately to every payer. Three banks means three declarations
- From 1 April 2026, both forms are replaced by a single Form 121
Form 15G and 15H are Now One Form
Of everything on this page, this matters most.
From Tax Year 2026-27, the Income Tax Rules, 2026 replace both Form 15G and Form 15H with a single unified declaration, Form 121.
| Old | New |
|---|---|
| Form 15G, for residents under 60 | Form 121 |
| Form 15H, for senior citizens | Form 121 |
The old forms are not simply renamed. From 1 April 2026, they will no longer be valid, and payers are expected to reject them and deduct TDS. If you have been filing 15G every April out of habit, that habit now produces the exact outcome you were trying to avoid.
What Still Applies to FY 2025-26?
A Form 15G submitted in April 2025 remains valid for that financial year. You do not resubmit it as Form 121 for a year that has already passed. Use Form 121 from the FY 2026-27 declaration onwards, ideally before the first interest credit of the year.
What does Form 121 Keep from each Form?
The age split is gone, but the conditions behind it survive. A resident under 60 needs two things: nil estimated tax liability, and the income covered by the declaration staying within the basic exemption limit. A senior citizen needs only nil estimated tax liability, with no cap on the covered income. So the old 15G and 15H rules now sit inside one form rather than two.
Who Can Submit Form 15G
You qualify when all three of these hold:
- You are a resident individual under 60, or a HUF, trust or other eligible non-company person
- Your estimated tax liability for the year is nil
- The total income covered by the declaration stays within the basic exemption limit
NRIs cannot submit it. The declaration is available to residents only.
The misunderstanding that causes most rejected declarations: you need nil tax, not nil income. Someone earning ₹6 lakh with deductions that bring their liability to zero still has to check the second condition, which is about the income covered by the declaration, not their total earnings. Both conditions have to hold, not just one.
If you are unsure where you stand, run your numbers through the income tax calculator. Check your position under both the old and new tax regime before declaring anything.
Form 15G or Form 15H: The Difference
| Form 15G | Form 15H | |
|---|---|---|
| Age | Below 60 | 60 and above |
| Who else can use it | HUFs, trusts, eligible non-company persons | Individuals only |
| Conditions | Nil tax liability and income within the exemption limit | Nil tax liability only |
| Income cap on the declaration | Yes | No |
The practical difference sits in that last row. A senior citizen with high interest income can still declare, provided deductions and rebates bring the final tax to nil. Someone under 60 cannot, once the covered income crosses the limit.
Where Form 15G is Actually Used
Most people meet it at a bank, but it applies more widely.
- Fixed deposit and recurring deposit interest, where TDS applies once interest crosses the threshold for the year
- EPF withdrawal, when you withdraw before completing five years of continuous service and the amount crosses the specified limit
- Rent received, where the tenant deducts TDS
- Interest on securities and certain other income paid to residents
The PF Withdrawal Case, which HR Teams See Most
This one matters for anyone leaving a job. If you withdraw your provident fund before completing five years of continuous service and the amount is above the specified limit, TDS applies. Submitting Form 15G along with the claim prevents the deduction, provided your total income for the year is genuinely below the taxable limit.
The declaration can be submitted along with your withdrawal claim through the EPFO member portal. It sits alongside Form 19, which is the actual withdrawal claim, rather than replacing it. How the five-year rule works, including service transferred from previous employers, is covered in our guide to the Employees’ Provident Fund.
How to Fill Form 15G
The form has two parts. You fill in Part I. The payer fills Part II.
In Part I, you provide:
- Your name, PAN, and status as an individual, HUF, or trust
- The previous year, the declaration covered
- Residential status, which must be a resident
- Full address, email, and phone number
- Whether you were assessed for tax earlier, and if so, the last assessment year
- Estimated income for which the declaration is being made
- Estimated total income for the year, including this income
- Details of any other Form 15G filed during the year, with the aggregate amount
- Details of the income: account number, nature of income, section, and amount
Then sign the verification and submit it to the payer.
Three rules that decide whether it works:
- PAN is compulsory. Without a valid PAN the declaration is invalid, and TDS applies at the higher rate
- One declaration per payer. If you have deposits at three banks, each bank needs its own form
- Every financial year, fresh. A declaration filed last April does nothing for this year
When to Submit It
At the start of the financial year, ideally in April, and certainly before the first interest credit.
TDS already deducted cannot be reversed by submitting the form later. Once the bank has deducted and deposited the tax, the only route left is a refund when you file your return. That is precisely the wait the form exists to prevent.
Declaring Wrongly has Consequences
Form 15G is a declaration made under the Income Tax Act, and a false declaration is not treated as a clerical slip.
Knowingly declaring nil liability when tax is actually payable can attract prosecution for a false statement in verification. Beyond that, the practical result is a shortfall that surfaces at filing time, with interest for the tax that should have been paid through the year.
Declare your genuine estimate. If your income position changes mid-year and you cross the threshold, tell the payer so TDS can resume.
What this Means for HR and Payroll Teams
Two situations bring Form 15G to the payroll desk.
PF Withdrawals
Ex-employees ask whether TDS will apply and whether the declaration helps. The answer depends on their service length and withdrawal amount, and the form goes to EPFO with the claim rather than to you.
Employees with Other Declared Income
Where an employee submits declarations for interest or rent, that income sits outside payroll, but its effect shows up when they reconcile their Form 26AS at filing time and find a mismatch.
The practical help HR can offer is accuracy on two points: the five-year rule and which amounts attract TDS. That stops employees from submitting declarations they are not entitled to make. Keeping service history, exit dates, and PF records clean on one system, as factoHR’s payroll software does, is what makes those answers quick rather than approximate.
Conclusion
Form 15G is a simple protection against paying tax you do not owe and then waiting months to get it back. Submit it early in the year, give it to each payer separately, and make sure your PAN is on it.
For FY 2026-27 onwards, there is one more step: use Form 121 instead. The old forms stop working from 1 April 2026, and a declaration on the wrong form leads to exactly the TDS you were trying to prevent.
FAQs
What is Form 15G?
Form 15G is a self-declaration submitted to a bank, employer or other payer, stating that your estimated tax liability for the year is nil. On that basis no TDS is deducted from interest or other specified income. It is meant for resident individuals under 60, HUFs and other eligible non-company persons.
Who is Eligible to Submit Form 15G?
A resident individual below 60, a HUF or a trust, whose estimated tax for the year is nil. The income covered by the declaration must also stay within the basic exemption limit. Non-residents cannot submit it, and senior citizens use Form 15H instead.
What is the Difference between Form 15G and Form 15H?
Form 15G is for residents under 60 and requires both nil tax liability and income within the exemption limit. Those aged 60 and above use Form 15H, which requires only nil tax liability, with no cap on the income covered.
Can I Submit Form 15G for PF Withdrawal?
Yes. Where you withdraw provident fund before completing five years of continuous service and the amount crosses the specified limit, TDS applies. Submitting Form 15G with the claim prevents it, provided your total income for the year is genuinely below the taxable limit.
How Many Times Should Form 15G be Submitted?
Once every financial year, to every payer separately. A declaration made last year has no effect this year, and a form given to one bank does not cover deposits held at another.
What Happens if TDS is Already Deducted?
It cannot be reversed by submitting the form afterwards. Once the tax is deducted and deposited, the only route is a refund when you file your return. That is why the declaration should reach the payer before the first interest credit.
Has Form 15G been Replaced?
Yes. From 1 April 2026, the Income Tax Rules, 2026 replace both Form 15G and Form 15H with a single Form 121. Declarations already made for FY 2025-26 remain valid for that year, but from FY 2026-27 the older forms are no longer accepted.
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