Form 121 Now Replaces 15G and 15H: What It Means for TDS and Taxpayers
Form 121 has replaced Forms 15G and 15H from April 1, simplifying how taxpayers avoid TDS on interest income. Introduced under the Income-tax Act, 2025, the unified form applies to both individuals and HUFs, removing age-based distinctions and making tax compliance easier under the new rules.
Starting April 1, taxpayers no longer need to choose between Form 15G and Form 15H to avoid tax deducted at source (TDS). A new unified declaration, Form 121, has been introduced, simplifying the process under the updated tax framework.
The move comes as part of reforms under the Income-tax Act, 2025, aiming to reduce confusion and make compliance easier for individuals, especially those with income below the taxable threshold.
One Form Replaces Two
Previously, individuals below 60 years submitted Form 15G, while senior citizens used Form 15H to prevent TDS if their income was below the taxable limit. With Form 121, this distinction has been removed, creating a single, streamlined system for all eligible taxpayers. New Income Tax Act: Know How Your Take-Home Salary Changes in FY 2026-27.
What the Change Means
Form 121 continues to function as a self-declaration that allows individuals to request no TDS on specified income sources. These typically include interest from bank deposits, post office savings schemes, and similar earnings.
The core principle remains unchanged: if your total estimated annual income is below the taxable limit, you can submit the form to avoid TDS deductions. New Rules From 1 April 2026: List of Rule Changes That Will Impact Your Wallet.
New Legal Framework
Earlier, Forms 15G and 15H were governed by Section 197A of the Income-tax Act, 1961 and Rule 29C. The new Form 121 is now backed by Section 393(6) of the updated law, along with Rule 211 of the Income-tax Rules, 2026.
This shift reflects the government’s broader effort to modernise tax procedures and improve ease of compliance.
Who Can File Form 121
Form 121 can be submitted by:
- Resident individuals (both below and above 60 years)
- Hindu Undivided Families (HUFs)
It cannot be used by:
- Companies and firms
- Non-residents
The eligibility condition remains that the estimated total income for the financial year must be below the taxable limit.
Information Required
The form is divided into two sections:
- Part 1 (Declarant): Name, PAN, address, date of birth, contact details, type and amount of income, and estimated total income. Details of income tax returns from the past two years may also be required.
- Part 2 (Payer): Completed by the bank or institution paying the income, including details of the declaration received.
Documents Needed
To submit Form 121, taxpayers must provide:
- PAN (mandatory)
- Income or investment details
- Proof of age (if applicable)
- Bank account details
A Simpler Approach to TDS
The introduction of Form 121 removes a long-standing point of confusion for taxpayers. By replacing two forms with one, the government has taken a step toward simplifying tax compliance, particularly for individuals managing modest incomes and interest earnings.
While the change may appear minor, it reflects a broader push to make India’s tax system more user-friendly and efficient.
(The above story first appeared on LatestLY on Apr 04, 2026 10:51 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).