Form 15G is a self-declaration a resident below 60 gives to a bank, company or other payer saying their tax for the year will be nil, so the payer should not deduct TDS from interest, dividends, rent, insurance commission or a PF withdrawal. It is a 1961-Act form: from tax year 2026-27 the same declaration is made in Form 121, which also absorbs Form 15H.

Two tests, not one

Form 15G only works if both of these hold for the year:

• Nil tax: the tax on your estimated total income, from every source, is zero. Rebate counts here, so someone whose tax comes to nil after the Section 87A rebate passes this test.
• Income below the exemption limit: the total of the incomes covered by the declaration (interest, dividends and so on) must not exceed the basic exemption limit. This second test is where most invalid 15G forms fail: deductions or the rebate can bring someone’s tax to nil while their interest alone still crosses the limit, and that person cannot use 15G. Banks also differ on which regime’s exemption limit they apply, so ask before relying on the higher new-regime figure.

Individuals, HUFs and other persons that are not companies or firms can use it. Non-residents cannot. A valid PAN is compulsory; a declaration without one is invalid and the payer deducts at the higher no-PAN rate.

FY 2025-26 versus tax year 2026-27

The ICAI tabular mapping places 197A inside section 393 and its footnote names Form 121 under Rule 211. Interest you have already received under a 15G stays on record in your AIS, and is still taxable if your income turns out higher than you estimated.

Where HR sees it

Employees ask about Form 15G mostly at exit, when they withdraw PF before five years of service. The EPFO accepts it with the online claim (see Form 19), but only an employee whose total tax is genuinely nil should upload it.

Frequently asked questions

Do I submit Form 15G to the tax department?

No. You give it to each payer separately, typically at the start of the year or before the first interest credit, and the payer reports it; you keep the acknowledgement in case your Form 26AS later shows a mismatch.

What if I give a false Form 15G?

A wrong declaration is a false statement under the Act and can attract prosecution, apart from the tax and interest you would owe anyway, so do not file it just to avoid a cash-flow hit.

Can a salaried employee use Form 15G?

Rarely. Most salaried people have tax payable, and salary TDS under Section 192 cannot be stopped with a 15G at all.

Not sure your tax really is nil? Run the numbers in the income tax calculator before you sign the declaration.