What is the New Form 121? Learn About the Tax Changes Effective from April 1, 2026

Income Tax Form 121: Saving on TDS will now be easier for senior citizens. The government has discontinued the old forms and introduced a new Form 121. Find out how this new rule will impact your savings.

Income Tax Form 121: Changes to Income Tax rules have come into effect starting April 1, 2026. If you are a senior citizen or if your income falls below the tax exemption limit, this news is relevant to you. You will no longer need to fill out the old Forms 15G or 15H to avoid TDS (Tax Deducted at Source) at banks or other financial institutions. The government has discontinued both of these forms and has now introduced a single new Form 121.

Have Forms 15G and 15H Been Completely Discontinued?

Yes, under the Income Tax Rules 2026, the old Form 15G (for individuals under 60 years of age) and Form 15H (for senior citizens) have been abolished. Now, whether you are 25 years old or 75 years old, if your annual tax liability is 'Nil' (Zero), you only need to submit Form 121. This change has been implemented to simplify the tax process, ensuring that individuals do not have to navigate the complexities of dealing with multiple forms.

On Which Types of Income Can TDS Be Avoided Using Form 121?

This new form will help you prevent tax deductions on various types of income. Primarily, this includes:

Interest earned on bank deposits and Fixed Deposits (FDs).
Withdrawals from Provident Funds (PF) or pension amounts.
Income derived from rent, dividends, and mutual funds.
Insurance commissions and proceeds received from life insurance policies.

What is the New UIN System, and How Does It Work? When you fill out Form 121 (Part A), the receiving institution (such as your bank) will issue a 26-digit Unique Identification Number (UIN) for each form. This number will comprise your details, the tax year (e.g., 202627), and the bank's TAN. Even if the bank does not deduct tax from you, it is still required to report to the government—on a quarterly basis—that it has received this declaration from you.