Form 121 Replaces 15G & 15H from April 1: New TDS Rule Simplifies Tax Filing for All
In a major move to simplify tax compliance, the Income Tax Department has introduced a new declaration system starting April 1, 2026. The widely used Form 15G and Form 15H have been discontinued, and a single unified Form 121 will now be used by all taxpayers to avoid Tax Deducted at Source (TDS), provided their tax liability is zero.
This change, effective from the new tax year 2026–27, is expected to streamline processes, reduce confusion, and make compliance easier—especially for senior citizens.
What Is Form 121 and Why It Was Introduced
Form 121 is a new declaration form that allows taxpayers to inform banks or payers that their total taxable income is below the taxable limit. Once submitted, TDS will not be deducted on eligible income.
The government introduced this unified form to:
- Eliminate multiple forms
- Simplify compliance
- Reduce errors and confusion
Earlier, taxpayers had to choose between different forms based on age. Now, a single form applies to everyone, making the process more straightforward.
Goodbye Form 15G & 15H—One Form for All
Previously:
- Individuals below 60 years used Form 15G
- Senior citizens (60+) used Form 15H
From April 1, 2026:
- Both forms have been replaced
- All taxpayers, regardless of age, will use Form 121
This change removes the need to remember separate eligibility rules and simplifies the filing process for millions.
Who Can Use Form 121?
You can submit Form 121 if:
- Your total tax liability is zero
- Your income is below the taxable limit
Once submitted, banks or financial institutions will not deduct TDS on your income.
Types of Income Covered Under Form 121
Form 121 applies to multiple income sources, making it highly useful for common taxpayers. These include:
- Interest from bank deposits
- Pension income
- Provident Fund (PF) withdrawals
- Rental income
- Insurance commission
- Mutual fund earnings
- Dividend income
This wide coverage ensures that most regular income streams are included.
What Is UIN and Why It Matters
Every time Form 121 is submitted, a Unique Identification Number (UIN) will be generated.
- It will be a 26-character code
- Includes sequence number, tax year, and payer’s TAN
The UIN helps:
- Track each declaration
- Improve transparency
- Strengthen data management
This is part of the government’s effort to digitize and monitor tax declarations more effectively.
Responsibilities of Banks and Payers
Banks and institutions responsible for making payments must:
- Generate a UIN for each Form 121 submission
- Maintain proper records of declarations
- Submit quarterly reports—even if no TDS is deducted
This ensures better compliance and accountability within the system.
Benefits for Taxpayers
The new rule offers several advantages:
1. Simplified Process
No need to choose between multiple forms—just one form for all taxpayers.
2. Ease for Senior Citizens
Elderly taxpayers benefit the most, as the process becomes less complicated.
3. Reduced Errors
Uniform rules minimize confusion and filing mistakes.
4. Better Transparency
Tracking through UIN ensures accountability and reduces misuse.
Final Takeaway
The introduction of Form 121 marks a significant step toward simplifying India’s tax system. By replacing Forms 15G and 15H with a single declaration, the government has made TDS-related compliance easier and more transparent.
If your income falls below the taxable limit, using Form 121 can help you avoid unnecessary TDS deductions while keeping your tax filings hassle-free.
