What is Income Tax Form No. 121? Purpose, Latest Eligibility, How to File, and More

Form No. 121 is a self-declaration form that individuals can submit to avoid Tax Deducted at Source (TDS) on specific incomes, such as interest on deposits, rent, dividends, income from Mutual Funds, insurance commission, and more. This form is effective from April 1, 2026, and replaces the earlier system of submitting Form 15G and Form 15H. 

Any assessee whose taxable income (after applying deductions, if any) for the financial year is below the basic exemption limit can file Form No. 121. This provision is governed by Section 393(6) of the Income Tax Act, 2025, read along with Rule 211 of the Income Tax Rules, 2026.

Want to understand in detail? Read this article to learn who can use Form No. 121, how the form is structured, and the step-by-step process for filing it (for FY 2026–27).

Who Can Use Form No. 121?

Form No. 121 is “age-neutral” and can be used by:

• Resident individuals (both below 60 years and senior citizens aged 60 years or above)
• Hindu Undivided Families (HUFs), and
• Other eligible entities

Realise that it is not available to companies, partnership firms, or non-residents. Furthermore, you can use Form No. 121 only when your total taxable income, after considering all eligible deductions (where applicable), is below the basic exemption limit. 

These limits vary depending on the tax regime selected. For FY 2026–27 (AY 2027-28), the latest basic exemption limits are as follows:

If your income stays within these basic exemption limits, no tax is payable, and you may submit Form No. 121 to prevent TDS.  For more clarity, let’s study examples (for both regimes):

Example Under the Old Regime

A resident individual aged less than 60 years earns ₹3,20,000 as interest income. They invest ₹1,00,000 under Section 80C. Now, the taxable income would be:

•  ₹3,20,000 − ₹1,00,000 = ₹2,20,000 

Since the taxable income (₹2,20,000) is less than the basic exemption limit of ₹2,50,000, the assessee can use Form 121.

Example Under the New Regime

A resident individual aged 80 years earns ₹3,80,000 total income. They are not eligible for any deduction. Now, since the taxable income is less than ₹4 lakh, the assessee can submit Form 121.

What Does Form No. 121 Contain?

Form No. 121 is divided into two parts:

• Part A, where all the details must be entered by the “Declarant” (individual requesting no TDS deduction)

and

• Part B, where details must be provided by the “Payer” (entity responsible for making the payment)

Let’s see what information Form No. 121 captures:

How to File Form No. 121 For FY 2026-27?

Firstly, you must confirm the eligibility. Your total taxable income for the year (including interest and other incomes subject to TDS) must be lower than the basic exemption limit and result in zero tax liability. 

If you are eligible, follow these steps to file your Form No. 121 for FY 2026-27:

Step 1: Obtain the Form

Form No. 121 can be downloaded from:

• The Income Tax Department’s official website 

or

• The website of the bank or financial institution

Many banks also provide this facility through internet banking or mobile banking platforms, where the form can be filled out and submitted online.

Step 2: Fill in the Declaration

You are required to enter information in Part A of the Form No. 121.  This includes your name, PAN, status (individual or HUF), tax year, residential status, and contact details. 

In addition, you must also mention the:

• Nature of income (such as interest)
• The estimated income from that source, and
• Your total estimated income for the year

These details allow the Income Tax Department to verify that your income is below the basic exemption limit.

Step 3: Submit the Form to the Payer

The completed Form No. 121 must be submitted to the payer, such as a bank, financial institution, or employer, who is responsible for making the payment. Submission can be done in physical form or through an online system (depending on the facility provided by the payer). 

Note that the Form No. 121 is valid only for the relevant tax year. Thus, it should be submitted:

• At the beginning of the year 

or

• Before the income is credited.

In Summary, Form No. 121 Should Be Submitted To Avoid TDS Deductions (w.e.f April 1, 2026)

So now you know that Form No. 121 is a new self-declaration form that has replaced the earlier Form 15G and Form 15H. Starting April 1, 2026, Form No. 121 must be submitted to avoid TDS deductions on specified income, such as interest from bank and post office deposits, rent, dividends, and more. 

It is age-neutral and can be filed by both senior citizens and individuals below 60 years.

However, this form can be submitted only when your taxable income (after applying eligible deductions) remains below the basic exemption limit. 

Realise that Form No. 121 does not remove tax liability. It only prevents unnecessary TDS deductions in cases where the income tax liability of an assessee is NIL. The form is available on the Income Tax Department’s official website.

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FAQs

1. Has Form No. 121 replaced Forms 15G and 15H?

Yes, Form No. 121 has replaced both Forms 15G and 15H (w.e.f April 1, 2026). It is an age-neutral self-declaration form that now applies to all eligible taxpayers, whether below 60 or senior citizens.

2. How to determine the eligibility for Form No. 121?

First, calculate your total income from all sources (salary, interest, rent, etc.), and then reduce any eligible deductions or exemptions. Now, if the resulting figure falls below the basic exemption limit, you can submit Form No. 121 to avoid TDS.

3. What types of income can be covered under Form No. 121?

Form No. 121 can be used for several sources of income where TDS is deducted. This includes interest from bank or post office deposits, dividends, rent, insurance commission, pension, provident fund withdrawals, and income from mutual funds.

4. Is filing Form No. 121 compulsory?

No, filing this form is optional. It is used only when your total income is below the basic exemption limit, and you want to avoid TDS. If you do not submit it, TDS may be deducted, which you can later claim as a refund while filing your income tax return.

5. How can Form No. 121 be submitted?

Form No. 121 can be submitted either in physical form or through online mode. Many banks and financial institutions provide online submission through the internet or mobile banking. The method depends on the facility offered by the payer.

6. Do you need to submit Form No. 121 to each payer separately?

Yes, if you receive income from multiple sources, such as different banks or institutions, you must submit a separate Form No. 121 to each payer.

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