With the introduction of the Income-tax Act, 2025, several familiar tax forms have been renumbered and reorganised. One of the most significant changes for taxpayers is the replacement of Forms 15G and 15H with Form 121.
If you previously submitted Form 15G or Form 15H to your bank, post office, or any other deductor to avoid TDS on eligible income, you will now need to use Form 121 under the new law.
In this guide, we explain what Form 121 is, who can submit it, the eligibility conditions, the types of income it covers, and the key changes introduced under the Income-tax Act, 2025.
What Is Form 121?
Form 121 is a declaration prescribed under the Income-tax Act, 2025 that allows eligible taxpayers to request that tax is not deducted at source (TDS) from specified income where the prescribed conditions are satisfied.
It replaces the earlier Form 15G and Form 15H, bringing both declarations into a single consolidated form to simplify compliance and reduce administrative complexity.
Why Were Forms 15G and 15H Replaced?
Under the earlier Income-tax Act, 1961:
- Form 15G was generally used by eligible resident individuals (other than senior citizens) and HUFs.
- Form 15H was generally used by eligible resident senior citizens.
Instead of maintaining two separate forms, the Income-tax Act, 2025 introduces Form 121, which consolidates both declarations into a single form.
According to the official explanatory note, this change has been made to:
- Streamline reporting.
- Reduce administrative complexity.
- Remove redundant fields.
- Make the form more system-friendly for electronic filing.
- Align the form with the Income-tax Act, 2025.
Form 121 vs Forms 15G and 15H
| Particulars | Forms 15G & 15H | Form 121 |
|---|---|---|
| Number of forms | Two separate forms | Single consolidated form |
| Applicable law | Income-tax Act, 1961 | Income-tax Act, 2025 |
| Filing | Paper/online (where available) | Designed for both paper and electronic submission |
| Reporting | Separate formats | Simplified structure with updated reporting |
| Terminology | Previous Year / Assessment Year | Tax Year |
Who Can Submit Form 121?
Form 121 may generally be submitted by eligible resident taxpayers who satisfy the prescribed conditions for furnishing a declaration requesting non-deduction of TDS.
Depending on the applicable provisions, this may include:
- Resident individuals.
- Resident senior citizens.
- Hindu Undivided Families (HUFs).
- Other eligible persons where permitted by law.
The declaration should only be furnished where the taxpayer satisfies the eligibility conditions prescribed under the Income-tax Act, 2025.
Who Cannot Submit Form 121?
Form 121 is generally not intended for:
- Non-residents.
- Companies.
- Most partnership firms.
- Persons who do not satisfy the prescribed eligibility conditions.
Submitting an incorrect declaration may have consequences under the Income-tax Act, 2025.
Eligibility Conditions
Before submitting Form 121, taxpayers should ensure that:
- They are eligible to furnish the declaration.
- The conditions prescribed under the Income-tax Act, 2025 are satisfied.
- The declaration is complete and accurate.
- Their PAN is valid and operative.
Taxpayers should also consider their total estimated income for the tax year before submitting the declaration.
Types of Income Commonly Covered
Depending on the applicable TDS provisions and eligibility conditions, Form 121 may be used for certain categories of income, such as:
| Type of Income | May Be Covered |
|---|---|
| Interest on Bank Fixed Deposits | ✔ Subject to eligibility |
| Interest on Recurring Deposits | ✔ Where applicable |
| Interest on Post Office Deposits | ✔ Where applicable |
| Dividend Income | ✔ Subject to the relevant provisions |
| Insurance Commission | ✔ Where eligible |
| EPF Withdrawal | ✔ Subject to prescribed conditions |
The availability of Form 121 depends on the applicable TDS provision and the taxpayer’s eligibility, not merely on the nature of the income.
Documents and Information Required
The official Form 121 requires information such as:
- Valid and operative PAN.
- Name and address.
- Date of birth (where relevant).
- Details of income or investments for which TDS is not to be deducted.
- Bank account details for interest-bearing instruments.
- Details of the payer (deductor), including TAN where applicable.
Providing complete and accurate information can help avoid delays or rejection of the declaration.
When Should Form 121 Be Submitted?
The Form should generally be furnished before the income is credited or paid, so that the payer can consider the declaration before deducting tax.
Many taxpayers submit the declaration at the beginning of the financial year or before the first payment of eligible income.
Delaying the submission may result in TDS being deducted, even if the taxpayer would otherwise have been eligible to furnish the declaration.
What Has Changed Under Form 121?
Some of the key changes include:
- Forms 15G and 15H have been merged into a single Form 121.
- The form has been redesigned to support electronic filing.
- Redundant fields have been removed.
- Terminology has been updated to align with the Income-tax Act, 2025.
- The currency symbol has been updated from “Rs.” to “₹”.
What Has Not Changed?
While the form number has changed, the basic purpose of the declaration remains the same.
It is important to understand that:
- The Form is not an exemption certificate.
- It does not make income tax-free.
- It is only a declaration requesting that TDS should not be deducted where the prescribed conditions are satisfied.
- If tax is ultimately payable, the taxpayer remains responsible for paying it while filing the Income Tax Return.
What Happens If Form 121 Is Not Submitted?
If an eligible taxpayer does not submit the Form in time:
- The payer may deduct TDS at the applicable rate.
- The taxpayer can generally claim credit for the TDS while filing the Income Tax Return.
- If excess TDS has been deducted, a refund may be available, subject to the applicable provisions.
Can Form 121 Be Submitted to Multiple Banks?
Yes. Where a taxpayer has eligible income from multiple banks or other deductors, it may be necessary to furnish the Form separately to each deductor.
However, taxpayers should ensure that the declaration remains accurate after considering their total estimated income and overall tax liability.
Common Mistakes to Avoid
Some common errors include:
- Submitting the declaration despite not meeting the eligibility conditions.
- Ignoring income received from other banks or deductors.
- Providing an incorrect or inoperative PAN.
- Forgetting to submit a fresh declaration for a new tax year.
- Assuming that the Form permanently exempts the income from tax.
- Waiting until after the income has already been credited.
Frequently Asked Questions (FAQs)
Is Form 121 the replacement for Forms 15G and 15H?
Yes. Form 121 replaces both Forms 15G and 15H under the Income-tax Act, 2025.
Can senior citizens submit Form 121?
Yes, provided they satisfy the prescribed eligibility conditions.
Can Form 121 be filed online?
Yes. The official form has been designed to support electronic filing as well as paper submission.
Is PAN mandatory?
Yes. The form requires a valid and operative PAN.
Can one Form 121 be used for multiple banks?
Generally, the declaration should be furnished to each deductor from whom eligible income is received.
Does Form 121 make my income tax-free?
No. It only requests that TDS should not be deducted where the prescribed conditions are met. It does not exempt taxable income.
What happens if I forget to submit Form 121?
The payer may deduct TDS. If excess tax has been deducted, you may generally claim credit or a refund while filing your Income Tax Return.
Is Form 121 required every year?
Yes. Like the earlier Forms 15G and 15H, a fresh declaration should generally be submitted for each tax year where required.
Need Assistance with TDS and Income Tax Compliance?
Understanding when and how to submit Form 121 can help avoid unnecessary TDS and improve tax compliance. If you need assistance with TDS matters, income tax compliance, or understanding the changes introduced under the Income-tax Act, 2025, our teams can help you navigate the requirements with confidence.