TDS Rules Change 2026: Form 15H Discontinued; You Must Now Fill Out This New Form to Save on Taxes..
If you—or the elderly members of your family—find yourselves making annual rounds to the bank just to avoid having TDS (Tax Deducted at Source) deducted, then this news is of utmost importance to you. Under the Income Tax Act, 2025, the government has taken a significant step toward simplifying the tax process. Forms 15H and 15G—which have been in use for decades—have been permanently discontinued effective April 1st. Putting an end to this old hassle of paperwork, a new and remarkably simple document—‘Form 121’—has now been introduced to replace it.
**The Farewell to Forms 15G and 15H: What is the New Form 121?**
Until now, the banking and financial system mandated the submission of different forms based on an individual's age. General taxpayers under the age of 60 were required to fill out Form 15G to prevent TDS from being deducted on their interest income. Conversely, Form 15H was mandatory for senior citizens aged 60 or above. Often, the existence of multiple forms left people confused as to exactly which document they needed to submit. The government has now eliminated this entire confusion at its root. With the commencement of the new financial year, both these forms have ceased to exist; they have been consolidated into a single, unified document: ‘Form 121’. Now, all eligible taxpayers need only submit this single form.
**The System Will Operate Automatically**
The greatest advantage of this new change is that individuals will no longer need to remember or keep track of different forms based on their age. Senior citizens, in particular, were often plagued by the anxiety of inadvertently submitting the wrong form at the bank. Form 121 makes this entire process technologically seamless. When you submit this new form to your bank or financial institution, their backend system will automatically apply the correct tax rules based on your age. In other words, while there will be only one standard form, the tax exemptions applicable to taxpayers will be automatically determined according to their specific age category.
Who is eligible to benefit?
The fundamental rules of the tax regime remain unchanged. To avail the benefits of Form 121, a taxpayer's total tax liability must be zero. Furthermore, the individual's total income must fall below the basic exemption limit prescribed by the government. If you fulfill these conditions, you may submit this new form to your bank or any other relevant financial institution. This document serves as a declaration stating that your income does not fall within the taxable bracket; therefore, no TDS (Tax Deducted at Source) should be deducted from your earnings.
To which sources of income does this rule apply?
Most importantly, while the name and format of the form have changed, the specific sources of income eligible for TDS exemption remain exactly as they were before. If you earn interest from bank Fixed Deposits (FDs) or savings accounts, you may utilize Form 121. Additionally, this form is fully applicable to income derived from pensions, returns received from mutual funds, dividends distributed by companies, life insurance payouts, and rental income.
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