Form No. 121 (Earlier Form Nos. 15G & 15H): Everything You Need to Know (2026)

Introduction

If you have ever submitted Form 15G or Form 15H to your bank or bond issuer to avoid TDS on fixed deposit or bond interest, here is something you need to know: both those forms are now gone.

From April 1, 2026, a single simplified form replaces them both Form No. 121, introduced under the new Income Tax Act, 2025. Whether you earn interest on bank deposits, post office schemes, bonds, mutual funds, or rental income and your total income is below the taxable limit Form 121 is now the only declaration you need to file.

This guide explains everything about Form 121 in simple, beginner-friendly language.

Why Was Form 121 Introduced?

For years, taxpayers had to choose between two separate forms depending on their age:

• Form 15G for resident individuals below 60 years of age

• Form 15H for senior citizens aged 60 years and above

This age-based split confused, especially for first-time filers and senior citizens who were unsure which form applied to them. The forms also used complex, outdated language asking for things like "Name of Assessee," specific TDS section references, and individual investment account numbers details most ordinary taxpayers found difficult to fill correctly.

The Income Tax Act, 2025 addresses all of this. Form 121 merges both forms into one and makes the experience significantly simpler:

• One form for everyone: no more choosing based on age

• Simpler language: asks for your "Name" instead of "Name of Assessee"

• Fewer fields: no TDS section inputs, no investment account numbers required

• Smarter design: The new form is expected to feature auto-population of details, real-time validations, and drop-down fields. These improvements are part of the design intent outlined under the Income Tax Act, 2025 framework and will be operationalized by the Income Tax Department through the e-filing portal

• Reduced ITR history: only last 2 tax years required, down from 6 years earlier

The result is a form that is faster to fill, easier to understand, and less prone to errors.

Who is Eligible to File Form 121?

Form 121 can be filed by the following:

• Resident individuals both below 60 years and 60 years or above

• Hindu Undivided Families (HUFs)

• Other specified eligible entities that meet the stipulated criteria

Core eligibility condition: Your estimated total income for the tax year including all sources must result in NIL tax liability. This means your income after applicable deductions should fall below the basic exemption limit.

Who is NOT eligible:

• Companies

• Partnership firms

• Non-resident individuals (NRIs)

If you do not have a valid PAN, your Form 121 declaration is considered invalid and the payer is required to deduct TDS at the applicable rate regardless of your income level. PAN is mandatory no exceptions.

What Incomes Are Covered Under Form 121?

Form 121 can be filed to prevent TDS deduction on the following specific income types as listed under Section 393(6) of the Income Tax Act, 2025:

(a) PF withdrawals Payment of accumulated balance due to an employee participating in a recognised provident fund

(b) Insurance commission Commission for soliciting or procuring insurance business, including continuance, renewal, or revival of insurance policies

(c) Rent Rent received from a specified person

(d) Mutual fund income Income in respect of units of a mutual fund, or units from the Administrator of the specified undertaking, or units from a specified company

(e) Interest income Interest on securities, interest other than interest on securities by a banking company or co-operative society carrying on banking business, or interest by a post office for a deposit made under a scheme notified by the Central Government

(f) Life insurance policy payments Payment in respect of a life insurance policy including the sum allocated as bonus on such policy

(g) Dividends Dividend (including dividend on preference shares) declared by a domestic company

Important: Form 121 covers only these specific income categories. If your income does not fall under any of the above, TDS rules will apply regardless of your overall tax liability.

How to Fill and Submit Form No. 121 (Step-by-Step)

For the Declarant (Individual / HUF)

Step 1 Check your eligibility

Confirm that your estimated total income for the tax year from all sources including interest, rent, dividends, and capital gains will result in NIL tax liability after deductions. Valid PAN is mandatory.

Step 2 Download Form 121

Download Form No. 121 from the official Income Tax Department website or from your bank's or financial institution's website. Many banks also offer online submission directly through internet or mobile banking.

Step 3 Fill in Part A

Part A requires the following details from the declarant:

• Full name and PAN

• Status (Individual / HUF / Trust)

• Tax Year and residential status

• Whether age is 60 years or more (Yes/No)

• Email ID and contact number

• Nature of income (select from the 7 eligible categories)

• Estimated income for which declaration is made (column 10)

• Details of any other Form 121 filed earlier during the same tax year (column 11)

• Aggregate amount of income for the tax year (column 12)

• Estimated total income for the tax year (column 13)

• ITR acknowledgment details for the last 2 tax years (column 14)

Step 4 Sign the declaration

By signing, you declare that:

• All information provided is correct and complete

• The income is not includible in any other person's total income

• Your estimated tax for the year will be NIL

Your income does not exceed the maximum amount not chargeable to tax

⚠ False Declaration Warning: Before signing Part A, ensure that all information is true, correct, and complete in all respects. As explicitly stated in Form 121, if the declaration is found to be false, the declarant shall be liable to prosecution under Section 482 of the Income Tax Act, 2025. Do not file Form 121 if you are not certain that your estimated total tax liability for the year is NIL.

Step 5 Submit to the payer before income is credited

Submit the completed Part A to your bank, broker, company, or any other entity that will pay you the income. Submission can be done physically or online, depending on the payer's system. The form is valid only for the current tax year you must submit a fresh Form 121 every year.

If you have income from multiple payers for example, interest from two different banks you must submit Form 121 separately to each payer.

For the Payer (Bank / Institution / Broker)

Once Form 121 is received from the declarant, the payer must complete Part B of the form, which includes:

• Verify the declarant's PAN and eligibility

• Assign a Unique Identification Number (UIN) to each Form 121 declaration received the UIN contains the sequence number, tax year, and TAN of the payer

• Record all declarant details in Part B name, PAN, UIN, date of birth, estimated income, and date of receipt

• Upload a consolidated monthly statement of all Form 121 declarations received to the Income Tax e-filing portal via TAN login on or before the 7th of the following month

• Quote the UIN in the quarterly TDS statement filed in Form No. 140

Non-compliance such as missing UINs or incorrect reporting may attract penalties under the relevant provisions of the Income Tax Act, 2025.

Form 121 for Bond Investors: What You Need to Know

For investors earning coupon (interest) income from bonds, Form 121 is directly relevant. When you hold corporate bonds, government bonds, or PSU bonds, the issuer or depository typically deducts TDS on the interest paid to you. If your total income is below the taxable limit, you can prevent this deduction by submitting Form 121.

Here is what makes 2026 particularly significant for bond investors:

As per the framework proposed under the Income Tax Act, 2025, investors holding bonds in demat form may be able to submit a single Form 121 directly to NSDL or CDSL covering all bond holdings across issuers in one go. However, the exact submission process and whether this facility is operationally live has not yet been officially notified by NSDL, CDSL, or the Income Tax Department as of the date of this article. Investors are advised to check with their Depository Participant (DP) for the latest update before their first coupon payment is due.

Key points for bond investors to remember:

• Form 121 applies to coupon income from corporate bonds, G-Secs, SDLs, and PSU bonds covered under category (e): interest on securities

• Must be submitted and accepted before the first coupon payment processing date of the tax year

• PAN must be valid and updated in your demat account

• Total income including bond interest and capital gains must result in NIL tax liability

• One submission to NSDL or CDSL covers all demat-held bond holdings from April 1, 2026

• The declaration must be renewed every tax year it is not a one-time submission

If you are a first-time bond investor, check with your depository participant about the Form 121 submission process before your first coupon is credited.

Need to submit your declaration for the 2026-27 tax year? Download the New Form 121 PDF here.

FAQs on Form 121

Q1. Has Form 121 officially replaced Form 15G and Form 15H?

Yes. Form No. 121 has replaced both Form 15G and Form 15H with effect from April 1, 2026. All taxpayers regardless of age now use a single Form 121 to declare NIL tax liability and avoid TDS deduction.

Q2. Is filing Form 121 mandatory?

No. Form 121 is optional. It is only for taxpayers who do not want TDS deducted because their estimated total income for the tax year is NIL. If you are liable to pay tax, you cannot file this form.

Q3. Is PAN mandatory for Form 121?

Yes. PAN is mandatory. If PAN is not provided, the declaration is treated as invalid and the payer must deduct TDS at the applicable rate under the Income Tax Act, 2025.

Q4. Do I need to submit Form 121 to each payer separately?

Yes, in most cases. If you receive income from multiple sources such as two banks, a company, and a landlord you must submit Form 121 to each payer individually. The only exception is for demat-held bond holdings, where a single submission to NSDL or CDSL is sufficient from April 1, 2026.

Q5. Does Form 121 make my income tax-free?

No. Submitting Form 121 only prevents TDS from being deducted at source. Your income is still taxable if it crosses the exemption limit. You must declare it in your Income Tax Return (ITR) as applicable.

Q6. Are capital gains included when calculating eligibility for Form 121?

Yes. For the purpose of Form 121 eligibility, your total income inclusive of capital gains from equity, property, or bonds must result in NIL tax liability. The basic exemption limit is not calculated excluding capital gains.

Q7. How often do I need to submit Form 121?

Form 121 is valid for one tax year only. You must submit a fresh declaration every year to your payer before the income is credited or paid. It is not a one-time submission.

Q8. What happens if I file Form 121 but my income ends up exceeding the taxable limit?

If your actual income at the end of the year exceeds the taxable limit and tax becomes payable, you are responsible for paying that tax while filing your ITR. Filing a false declaration can attract prosecution under Section 482 of the Income Tax Act, 2025.