Form 15G & 15H Replaced by Form 121: What It Means for Taxpayers

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From 1 April 2026, a quiet but important change has come into effect in India’s tax system. The government has replaced Form 15G and Form 15H with a single new form called Form 121. 

For years, individuals have used Form 15G and Form 15H to ensure that tax is not deducted at source when their total income is below the taxable limit. This was especially common for bank interest, fixed deposits and similar income streams. While the intent was clear, the process often created confusion. Many taxpayers were unsure about which form to use, when to submit it and whether they were even eligible.

Form 121 aims to fix this. Instead of maintaining two separate forms based on age, the system now moves to a single, unified declaration. 

Background: What Were Form 15G and 15H?

To understand the importance of Form 121, it is important to first look at what Form 15G and Form 15H were designed to do.

Both forms were self-declarations submitted by individuals to request that no TDS be deducted on certain types of income. This was allowed only when the individual’s total income for the year was below the taxable limit and their overall tax liability was zero.

The key difference between the two forms was based on age. 

• Form 15G was meant for individuals below 60 years and also for Hindu Undivided Families. 
• Form 15H was specifically designed for senior citizens aged 60 years and above. 

These forms were commonly submitted to banks for fixed deposit interest, to employers or institutions for EPF withdrawals and in some cases for dividends or insurance-related income. In practice, many taxpayers had to submit these forms multiple times across different institutions within the same financial year.

Over time, this created a system that was functional but not efficient. There was duplication of effort, repeated paperwork and frequent errors in submission. For many taxpayers, especially those not deeply familiar with tax rules, the process felt more complicated than it needed to be.

This is the gap that Form 121 now aims to address by bringing everything under one simple structure.

What is Form 121?

Form 121 is the new self-declaration introduced to replace both Form 15G and Form 15H. It serves the same core purpose, which is to allow eligible taxpayers to request that no tax is deducted at source on certain incomes. The key difference lies in how this is now structured.

Instead of having separate forms based on age, Form 121 brings everyone under one format. Whether a taxpayer is a young professional or a senior citizen, the same form will be used to declare that their total income is within the non-taxable limit and that no tax is payable for the year.

• The form is designed to be more straightforward. 
• It focuses on essential details such as PAN, estimated total income and a declaration of nil tax liability. 
• Another important aspect is that Form 121 is aligned with a more system-driven approach. The information provided is expected to be better integrated with tax records, which can help reduce mismatches and improve accuracy over time.

In simple terms, Form 121 keeps the benefit intact but improves how taxpayers access it. The goal is not to change eligibility but to make the experience smoother and more consistent.

Key Changes in Form 121 Compared to 15G and 15H

The shift to Form 121 is not just about merging two forms into one. It also brings a few meaningful changes in how the declaration works in practice.

1. First, the most visible change is the removal of age-based classification. Earlier, taxpayers had to choose between two forms depending on whether they were below or above 60 years. With Form 121, this distinction no longer exists. Everyone follows the same process, which removes a common source of confusion.
2. Second, the structure of the form is more streamlined. The focus is on capturing only the most relevant details such as identity, income estimate and declaration of tax liability. This reduces the chances of errors and makes it easier for individuals to complete the form without assistance.
3. Another important change is the stronger reliance on PAN and linked records. The declaration is expected to work more closely with existing tax data, which helps in verifying information and reducing mismatches. This also supports faster processing by financial institutions.

There is also a shift in how information is tracked. Instead of repeated submissions that remain disconnected, the new system is expected to assign a unique reference to each declaration. This makes it easier to monitor usage across different institutions and limits duplication.

Eligibility: Who Can File Form 121?

While the format has changed, the basic eligibility rules remain largely the same. Form 121 can be submitted by individuals who meet two key conditions.

• First, their total income for the financial year must be within the basic exemption limit. This limit depends on the tax regime chosen, but the principle remains consistent. If the income is not taxable, the individual can make a declaration.
• Second, the final tax liability must be zero. This is important because the form is meant only for those who do not owe any tax after considering all income sources and deductions.
• Unlike the earlier system, age is no longer a factor. Both younger individuals and senior citizens can use the same form as long as they meet the income and tax conditions.

It is also important to note that this declaration is based on an estimate. Taxpayers need to carefully assess their expected income for the year before submitting the form. If the actual income later exceeds the limit, the responsibility to pay tax still remains with the individual.

Income Types Covered: Where Form 121 Actually Applies

Form 121 is not a general tax form. It is used only in specific situations where tax is deducted at source on certain types of income. Understanding where it applies is important because this is where most taxpayers make mistakes.

The most common use case is interest income from banks. When you earn interest from fixed deposits or recurring deposits beyond a certain threshold, banks are required to deduct TDS. If your total income is still below the taxable limit, Form 121 can be submitted to prevent this deduction.

Another key area is EPF withdrawals. If an employee withdraws their provident fund before completing the required tenure, TDS may apply. In such cases, Form 121 can be used if the individual’s total income remains non-taxable.

It also applies to dividend income from shares or mutual funds. Companies and fund houses may deduct TDS once income crosses specified limits. Submitting Form 121 ensures that this deduction does not happen when there is no actual tax liability.

In certain cases, the form can also be used for insurance commissions, rent payments and other specified incomes where TDS provisions are triggered. The exact applicability depends on the section under which tax is being deducted, but the principle remains the same.

One important point to understand is that Form 121 works at the source level. This means you need to submit it to each institution that is responsible for deducting TDS. If you have fixed deposits in two different banks, both will require a separate submission.

Also, this form does not eliminate tax. It only prevents advance deduction. If your income later exceeds the exemption limit, you are still required to pay the tax while filing your return.

When and How to Submit Form 121

Form 121 is not submitted to the income tax department directly. It has to be given to the entity that is deducting TDS.

This typically includes:

• Banks (for FD and RD interest)
• Post offices
• Companies (for dividends or commissions)
• EPF authorities (in case of early withdrawal)

If you earn income from multiple sources, you must submit the form separately to each one.

When to Submit

Timing plays a key role in actually getting the benefit. Submit at the start of the financial year (April)

If submitted late:

• TDS may already be deducted
• Refund can only be claimed while filing ITR
• There is no penalty for late submission, but it affects your cash flow.

How to Submit

Most institutions now offer both online and offline options.

Online mode: Net banking (for banks), Investment platforms or company portals

Offline mode: Physical submission at branch or office

Information Required

You need to provide:

• PAN (mandatory)
• Estimated total income for the year
• Declaration of zero tax liability
• Basic personal details

Form 121 is valid only for one financial year, so it must be submitted again each year as long as you continue to meet the eligibility conditions.

Impact on Taxpayers

Where to Download Form 121?

As of now, Form 121 is part of the updated income tax framework and will be made available through official and authorised channels. To ensure accuracy and avoid using outdated formats, it is important to download the form only from trusted sources.

Official Sources

• Income Tax Department website: The form will be available on the official income tax portal under the “Forms” section once notified for public use.
• Bank and financial institution websites: Most banks provide downloadable versions of TDS declaration forms through their websites or net banking portals. Form 121 will also be hosted there for easy access.

Online Submission Option

In many cases, you may not need to download the form at all.

• Banks and institutions usually provide a pre-filled online version inside net banking
• You can directly fill and submit the form digitally without any paperwork

Important Points to Keep in Mind

• Always use the latest version of the form as prescribed for the relevant financial year
• Avoid downloading from third-party or unverified websites
• Check if your bank offers an online submission option, as this is faster and reduces errors

Conclusion: Key Takeaways

• Form 121 replaces both Form 15G and 15H from 1 April 2026, creating a single system for TDS self-declaration
• The purpose remains unchanged, it helps eligible taxpayers avoid TDS when their total tax liability is zero
• Eligibility depends on income level and tax liability, not age
• It applies to incomes like bank interest, dividends and certain other TDS-linked earnings
• The form must be submitted to each deductor where TDS may apply
• Submitting at the start of the financial year helps avoid unnecessary deductions
• It is valid for one financial year and must be filed again each year if eligible
• Incorrect income estimation can lead to tax liability at the time of ITR filing
• Form 121 improves process efficiency but does not remove the need for proper tax planning

Frequently Asked Questions on Form 121

1. Why was Form 121 introduced?

Form 121 was introduced to replace Form 15G and 15H and remove the confusion of having multiple forms for the same purpose. It creates a single, standardised process for all eligible taxpayers and improves tracking and accuracy in TDS declarations.

2. How to fill Form 121?

Filling Form 121 involves three key steps:

• Enter your basic details such as name, PAN and contact information
• Provide an estimate of your total income for the financial year
• Declare that your final tax liability will be zero

Before submitting, ensure that you have considered all income sources to avoid incorrect declaration.

3. Can Form 121 be submitted online?

Yes, most banks and financial institutions allow online submission through net banking or their digital platforms. You can also submit it offline by visiting the branch or office where your income is generated.

4. What happens if I submit Form 121 late?

If you submit the form after the financial year has started, TDS may already be deducted on your income. In such cases, you can claim a refund only when you file your income tax return.

5. What if my income exceeds the limit after submitting Form 121?

If your actual income exceeds the exemption limit, you are still required to pay the applicable tax while filing your return. Submitting Form 121 does not remove your tax liability if you become ineligible later.

6. Is Form 121 mandatory for all taxpayers?

No, Form 121 is not mandatory. It is only required if you want to avoid TDS on eligible income and meet the conditions of having income below the taxable limit and zero tax liability.

7. Do I need to submit Form 121 to every bank or institution?

Yes, the form must be submitted separately to each deductor. If you have income from multiple sources, each institution will require its own submission to stop TDS.

8. Where can I download Form 121?

Form 121 can be downloaded from the official Income Tax Department website under the “Forms” section once it is made available. It is also typically provided by banks and financial institutions on their websites or through net banking portals.