Form 121: The New TDS Declaration Guide

Form 15G/15H Discontinued? New Form 121 for Saving TDS from April 1, 2026

Starting April 1, 2026, the new Income Tax Act, 2025 and Income Tax Rules, 2026 will come into effect. With this transition, the long-standing Form 15G and Form 15H have been retired and replaced by a single, unified Form 121.

What is Form 121?

Form 121 is a Self-Declaration Form. You submit this to your bank or any other payer to declare that your total estimated income for the entire financial year is below the basic tax exemption limit. This ensures that no TDS is deducted from your income.

Major Change: 15G and 15H Merged into One

Previously, senior citizens used Form 15H, while others used Form 15G. Under the new rules, these two have been merged into Form 121:

  • Senior Citizens (Above 60 years): You will now need to fill out Form 121.
  • Regular Citizens (Below 60 years): This is now the only form available for you as well.

Who is Eligible to Submit?

1. Resident Individuals: Indian residents.
2. HUFs (Hindu Undivided Families): Hindu Undivided Families.
3. Condition: Your total tax liability for that 'Tax Year' must be NIL (Zero).

Note: NRIs, companies, and firms are not eligible to use this form.

Which Payments Can Be Protected?

  • Interest from Bank or Post Office FD/RD.
  • Interest from Corporate Bonds.
  • Dividends from shares.
  • Rental income.
  • PF withdrawals and insurance commissions.

Essential Points to Remember

  • PAN is Mandatory: Form 121 will not be valid without a functional PAN card. In its absence, banks may deduct TDS at a higher rate of 20%.
  • Annual Submission: This form is only valid for one 'Tax Year'. You must resubmit it at the start of every new financial year.
  • UIN (Unique Identification Number): Once you submit the form, the payer (like your bank) will generate and provide a UIN, which serves as your official receipt.

Conclusion: This move by the government aims to simplify tax compliance by removing the confusion between multiple forms. Accurately estimate your annual income and submit Form 121 on time to keep your hard-earned money safe.