Form 121 Replaces Forms 15G & 15H from April 2026: What You Need to Know

TL;DR

From April 1, 2026, Form 15G and Form 15H are replaced by a single Form 121, allowing any eligible taxpayer, irrespective of age, to avoid TDS through a unified declaration if their tax liability is zero.

This simplifies compliance across individuals, but timely submission and correct eligibility remain crucial to prevent unnecessary tax deductions.

More than a rename

India’s TDS compliance framework is going through a meaningful shift.

The Central Board of Direct Taxes (CBDT) is replacing the age-based Forms 15G and 15H with a single unified declaration, Form 121, effective from Financial Year 2026–27.

For millions of taxpayers, especially retirees, deposit holders, and passive income earners, this is more than a simple form change. It directly affects how TDS is managed, tracked, and verified in everyday financial transactions.

What Is Form 121?

From FY 2026–27 onward, taxpayers will use Form 121 as a self-declaration to prevent TDS (Tax Deducted at Source) on certain types of income.

The form allows you to declare:

• Your total income is below taxable limit
• Your final tax liability is zero

Based on this declaration, the payer (bank, company, etc.) will not deduct TDS.

Why the change?

The distinction between Form 15G (for those under 60) and Form 15H (for senior citizens) was purely age-based. Both forms did the same job, creating needless duplication in the compliance process.

Form 121 addresses three inefficiencies:

• Eliminates redundancy - one form instead of two, serving the same purpose
• Reduces confusion - taxpayers no longer need to determine which form applies to them
• Supports digital infrastructure - a unified structure enables better system integration, tracking, and reporting

Form 15G vs Form 15H vs Form 121

• Form 15G - Below 60
• Form 15H - 60+
• Form 121 (New) - Not applicable (no age restriction)

Purpose - Avoid TDS

Validity - Till March 2026 (15G & 15H), From April 2026 (Form 121)

Structure - Separate forms vs Unified

Big change: Age-based forms are eliminated.

Who Can Use Form 121?

Form 121 can be used by any eligible resident individual, irrespective of age, including senior citizens, as long as their total tax liability is nil.

This is a key shift from the earlier system:

• Previously, taxpayers below 60 used Form 15G
• Senior citizens (60+) used Form 15H
• Now, Form 121 applies to both groups without any age-based distinction.

In addition to individuals, Hindu Undivided Families (HUFs) can also use this form.

Note: The most important condition remains unchanged:

You can submit Form 121 only if your total tax liability for the year is zero.

Where it applies

The form covers a wide range of income types:

• Fixed deposit and savings account interest
• Pension income
• Provident Fund withdrawals
• Rent and dividend income
• Mutual fund earnings and insurance payouts

When Should You Submit Form 121?

Form 121 should ideally be submitted at the start of the financial year (April), because TDS is deducted at the moment income is credited or paid.

If you delay, the deduction may already have occurred, and the only way to recover it is through a refund when filing your income tax return.

Practical note: Even a short delay in submission can result in TDS being deducted on your first quarterly interest payment.

What Happens After You Submit Form 121?

• The payer will not deduct TDS
• Your income is credited in full

This is valid only if your actual tax liability is zero.

Income Covered Under Form 121

• Fixed deposit (FD) interest
• Savings account interest
• Rent income
• Pension payments
• Provident Fund withdrawals
• Dividend income
• Mutual fund income
• Insurance commission
• Life insurance payouts

This makes it highly relevant for senior citizens, investors, and passive income earners.

UIN in Form 121: What’s New?

Each Form 121 declaration will receive a 26-character UIN.

Structure of UIN:

• Sequence number
• Tax year
• TAN of the payer

Why UIN matters:

• Tracks each declaration
• Ensures compliance transparency
• Helps in reporting and audits

Responsibilities of Banks & Payers

• Assign a UIN for each submission
• Maintain declaration records
• Submit Part B of Form 121
• Report even if no TDS is deducted

Important Conditions Before You Submit

• Your total income is below exemption limit
• Your final tax liability is zero
• Your PAN is valid and linked

Note: If PAN is not provided:

TDS may be deducted at 20% or higher

What This Means for Senior Citizens

This change is particularly important for senior citizens who rely on regular income from fixed deposits, pensions, and other interest-based earnings.

With the introduction of Form 121, the process becomes more straightforward, as the same declaration now applies to everyone regardless of age.

The removal of age-based classification makes the process easier to understand and follow.

Real-Life Example

A senior citizen earns ₹2.8 lakh annually from FD interest.

• Without Form 121 - TDS deducted - refund later
• With Form 121 - No TDS - full income received

Result: Better monthly cash flow

Strategic Impact of This Update

• Simplification - Multiple forms to single form
• Standardization - Same process for all
• Digital compliance - UIN-based tracking

This is a foundational step toward a more structured tax ecosystem in India.

Final Takeaway

• Understand your eligibility
• Submit early
• Ensure accuracy

Stay informed.

Stay prepared.

Stay compliant.