Form 121 Replaces 15G & 15H — If you've ever stared at two similar-looking tax forms and wondered which one actually applies to you — you're not alone. Form 15G and Form 15H caused that exact confusion for years. But starting this financial year, that problem is gone. The government has replaced both forms with a single Form 121 income tax declaration under the new Income Tax Act 2025, and honestly, it's the kind of simplification people actually needed.
No more picking the "right" form based on your age. One form. Everyone.
The old setup wasn't complicated in theory — it was just split in a way that tripped people up every year.
If you were under 60, you filled Form 15G. If you were 60 or older — a senior citizen — you used Form 15H instead. Both forms did the same job: they told your bank or post office that your total income for the year was below the taxable limit, so please don't deduct TDS.
You've probably seen this before — someone filing the wrong form 15G 15H by mistake, or a first-time senior citizen unsure whether their age had officially crossed the threshold. It wasn't a disaster, but it was an unnecessary headache. The intent was always clear; the execution just had one extra step nobody needed.
Form 121 is a self-declaration — you're telling the payer (your bank, post office, mutual fund, or whoever is paying you) that your estimated total income this year won't cross the taxable limit. Based on that declaration, they skip the TDS deduction.
The income types covered under this include:
So if TDS deducted on fixed deposit interest has been quietly eating into your savings every year, this form is how you stop that — legally, with one sheet of paper.
The new Form 121 doesn't change what you declare. It just removes the age-based split that made the old system messier than it needed to be. Senior citizens no longer need to hunt for a separate form. And if your tax liability is expected to be zero for the year, you can file this from the next assessment year onward.
Here's the clear breakdown — and a few important exceptions.
Eligible:
Not eligible:
The one condition that applies to everyone: your estimated total income for the full year must stay below the taxable threshold. That's it. If that condition is met, you qualify — age doesn't enter the picture anymore.
The form is split into two parts. The first part is yours to fill.
You'll provide your name, PAN, address, date of birth, contact details, the type of income on which you don't want TDS cut, the estimated amount, and your projected total annual income. In some cases, ITR details from the previous two years may also be asked for.
The second part is filled by the payer — say, your bank — who records that they've received your declaration.
Before you submit, keep these things ready:
One thing people miss every year: this form has to be submitted fresh each financial year. It doesn't carry forward automatically. You'll want to submit it before the income is paid — not after TDS has already been cut, when it becomes a refund problem.
This new TDS exemption form India 2025 sits under Section 393(6) of the Income Tax Act 2025 and Rule 211 of the Income Tax Rules 2026. For context, the old forms — 15G and 15H — were governed by Section 197A and Rule 29C of the older framework.
The government's stated goal is modernization. Honestly, this depends on how smoothly banks and institutions roll out the new form — but on paper, a unified declaration is simpler for everyone involved.
Once submitted correctly, banks, post offices, and other institutions won't deduct TDS on the covered income. For the millions of taxpayers dealing with unnecessary TDS on small, regular income — FD interest, post office returns — this change is genuinely useful.
You fill out Part 1 of Form 121 with your PAN, income details, and estimated annual income, then submit it to your bank before the interest is credited. Most banks now accept this online through net banking or at the branch. The bank fills Part 2 to acknowledge receipt. Do this at the start of the financial year — not after TDS has already been deducted, because getting a refund through ITR filing takes months longer.
Senior citizens can use Form 121 — that's actually the whole point of this change. Earlier, anyone above 60 had to specifically find and file Form 15H. Now there's no age filter. A 45-year-old and a 72-year-old fill the exact same form. The eligibility condition is purely income-based: your total estimated income for the year must be below the taxable limit.
This is where people get nervous — and rightly so. If your actual income crosses the taxable threshold after you've submitted a Form 121 declaration, you're responsible for paying the tax that should have been withheld. The payer relied on your self-declaration in good faith. Filing a false declaration can attract penalties under the Income Tax Act. So before you submit, estimate conservatively — if you're close to the limit, it's safer to let TDS be deducted and claim a refund later.
Yes — a Hindu Undivided Family can use Form 121, provided the HUF's estimated total income for the year stays within the non-taxable range. The process is similar to an individual filing: the Karta (head of the HUF) typically fills out and signs the declaration. Companies, LLPs, and partnership firms don't qualify — this form is only for individuals and HUFs.
Every year, without exception. Form 121 covers one financial year only — it's not a standing instruction to your bank. If you skip it for a particular year, TDS will be deducted as usual. Around 70–80 lakh taxpayers file declarations like this annually, and the most common mistake is assuming last year's submission still counts. Set a reminder at the start of each April. Two minutes of paperwork saves months of waiting for a refund.
This article is based on provisions under the Income Tax Act 2025, Section 393(6), and Income Tax Rules 2026, Rule 211. For individual tax advice, consult a qualified CA.
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