Form 15G for Non-Senior Citizens Explained

What Form 15G Is and Why It Exists?

Form 15G is a self-declaration form. A resident individual below the age of 60, or a Hindu Undivided Family (HUF), can submit it to a bank or financial institution to request that TDS not be deducted on interest income. By signing and submitting it, you are telling the payer in writing that your total income for the year is below the taxable limit and that you do not owe any tax.

Banks are required to deduct TDS once your interest income crosses ₹50,000 in a financial year (for non-senior citizens). If that deduction happens and you were not liable to pay tax, you can claim it back as a refund when you file your return. But that process takes time and involves paperwork. Form 15G simply prevents the deduction from being made in the first place.

Who Can Submit Form 15G?

Not everyone qualifies. Two conditions must be met together for a non-senior citizen to be eligible for FY26.

First, the final tax on your total estimated income for the year must work out to zero. Second, your total interest income from all sources must not exceed the basic exemption limit; that is ₹2.5 lakh under the old tax regime, or ₹4 lakh under the new regime for FY26.

Both conditions need to be satisfied at the same time. Meeting only one of them does not make you eligible. Non-resident Indians cannot submit this form; it is only available to resident Indians. A valid PAN is compulsory. Without it, the form will be rejected outright and TDS will instead be deducted at a steeper rate of 20%.

Where You Need to Submit It?

Form 15G is not restricted to bank fixed deposits alone. It can be submitted to post offices, to the EPFO if you are making a provident fund withdrawal, to bond and debenture issuers, and to other institutions that deduct TDS on interest payments. If you hold deposits across more than one bank or branch, you need to submit the form separately to each of them. One submission does not cover the rest.

The form is valid for a single financial year only and must be submitted afresh every year. Submitting it at the start of the financial year, ideally in April, ensures that no TDS is deducted on any interest credited during that year.

When You Should Not Submit Form 15G?

This is the part that tends to be overlooked, and it matters. Form 15G is a formal declaration, not a request. Submitting a false one has real legal consequences.

If your total income from all sources, including salary, rent, business income, and interest, exceeds the basic exemption limit, you are not eligible to file this form. Doing so anyway constitutes a false declaration under the Income Tax Act. Wrong declarations attract prosecution and fines under Section 277 of the Act. Penalties can include imprisonment of three months to two years, alongside fines. The income tax department routinely cross-checks filed declarations, and discrepancies can lead to scrutiny notices or legal proceedings.

It is also worth being clear about what this form is not meant for. If you are in a higher tax bracket and simply want to avoid TDS temporarily to manage your cash flows, Form 15G is not the right instrument. The form exists for people who genuinely owe no tax. For everyone else, the correct route is to pay advance tax through the year and claim TDS credit when filing the return.

What Happens If You Submit It Late?

If TDS has already been deducted before you submit the form, the bank will generally not reverse what has already been taken. You would need to file your income tax return and claim the deducted amount as a refund. You can verify what has been deducted by checking your Form 26AS or the Annual Information Statement on the income tax portal. Submitting the form mid-year does stop further deductions going forward, but it does not undo what the bank has already deducted.

The Shift to Form 121 From FY27

There is one important change to be aware of for the year ahead. From April 1, 2026, Form 121 replaces both Form 15G and Form 15H under the Income Tax Act, 2025. It is a single unified form for all eligible taxpayers regardless of age. The older forms are no longer valid from that date and institutions are required to reject them and deduct TDS even if one is submitted.

For FY26, Form 15G continues to apply and should be submitted as it always has been. The switchover to Form 121 becomes relevant from FY27 onwards.

A Practical Check Before You Fill the Form

Before submitting Form 15G, estimate your total income for the year across every source: salary, interest from all deposits, rent, and anything else. If that total comes in below ₹2.5 lakh under the old regime or ₹4 lakh under the new regime, and your tax liability is nil, you can go ahead. If there is any doubt about whether you cross these limits, it is worth speaking to a tax professional before making a declaration you may not be entitled to make.