Form 121 (Tax Year 2026-27): How to Fill, Submit and Save TDS

Form 121 is a self declaration form for TDS deduction at nil rate. It replaces Form 15G and Form 15H, with effect from 1st April 2026.  Form 121 is a unified self-declaration form under Income Tax Act 2025 read with the Income Tax Rules 2026. However, the purpose of Form 121 remains the same but simplifies the process by providing a single declaration form for all taxpayers instead of separate forms based on age.

Income Tax Forms 2026

Form 121 is the new income tax form under Income Tax Rules 2026 which replaces the previous Form 15G and Form 15H with effect from April 1, 2026 for Tax Year 2026-27 and onwards. 

What is Form 121?

Form 121 is the new unified self-declaration form in India that replaces Form 15G and 15H with effect from 1st April 2026 which allows resident individuals and HUFs to prevent TDS deduction on interest, dividends, and other income by declaring that their total income is below the taxable limit. Form 121 can be filed by resident taxpayers irrespective of their age. This is a major update from the old Income Tax Act 1961 which had two different forms based on the age of the taxpayer. 

Why was Form 121 Introduced?

The Income Tax Act 1961, had sprawling provisions, often out of sequence, and complicated to understand. Therefore, Income Tax Act, 2025 was introduced, taking effect from 01st April 2026. The new act removed redundant provisions, and ensured easy interpretation of statute and stronger compliance. All the sections, rules and forms has gone through re-numbering and changes. Form 15 G and 15H, which was used for nil TDS deduction for certain income, is now replaced by Form 121. 

Form 121 vs Form 15G vs Form 15H: Key Differences

Who can File Form 121?

Form 121 can be filed by resident taxpayers irrespective of their age, who have total income below the taxable limit with a zero tax liability. Resident taxpayers include:

• Resident individuals (including senior citizens)
• Hindu Undivided Family (HUFs)
• Other eligible assessees such as certain trusts with total income below the taxable limit

Conditions to be Eligible for Form 121

• The taxpayer should be a resident in India
• The total tax liability for the year should be zero after deductions and exemptions
• The declaration must be submitted before TDS is deducted by the payer

Who cannot File Form 121?

Form 121 cannot be filed by:

• A Non-Resident (NRIs)
• Companies and Partnership firms
• Individuals or entities with taxable income and tax liability

Income Limits - Old Tax Regime vs New Tax Regime

How to Fill Form 121?

Step 1: Determine your total taxable income for the year and calculate the tax liability on it using ClearTax Income Tax Calculator. 

Step 2: If your total tax liability is zero then you are eligible to submit Form 121. 

Step 3: Download the Form 121 PDF from the income tax department’s website. 

Step 4: Fill in Part A i.e, the Declarant’s details such as PAN, Name, Address, Residential Status, Income details, and all other fields

Step 5: Enter the details of the payer such as TAN of the bank or the institution

Step 6: Sign and submit the declaration to the payer before the deduction of TDS for the year.
When to submit Form 121?

Form 121 is usually submitted in the beginning of the financial year. However, the form can be filed anytime before TDS is deducted. Once the form is filed, income earned subsequently is eligible for nil TDS deduction.

How to Submit Form 121?

• Form 121 has to be submitted by the taxpayer to each payer individually to avoid TDS deduction. 
• Taxpayers can submit the form manually or online through the respective bank or institution's online facility. 
• Taxpayers should make sure that Form 121 has been submitted before the income has been credited or paid to them i.e., before any TDS has been deducted by the payer. 
• Once Form 121 has been submitted by the taxpayer, the payer i.e., the bank or institution uploads Part B of the form on the Income Tax e-filing portal. 

Incomes covered under Form 121

Form 121 can be submitted by eligible taxpayer having the following incomes for Tax Year 2026-27 and onwards:

• Interest on bank fixed deposits and savings accounts
• Interest on post office deposits
• Interest on securities or bonds
• Dividend income
• Income from mutual funds
• Payments from life insurance policies
• EPF or PF withdrawals and pension
• Insurance commission
• Rental income
• Other specified incomes where TDS is applicable

Form 121 - Part A

Part A of Form 121 captures the basic details of the taxpayer or the declarant and is the first section that must be filled by all eligible applicants such as resident individuals or HUFs.

Details required in Part A

1. Name of the taxpayer
2. PAN (Permanent Account Number)
3. Residential status (must be resident in India)
4. Tax Year
5. Complete address (including PIN code)
6. Email ID and mobile number
7. Nature of Income

Part A establishes the identity, contact details, and eligibility of the taxpayer before making the income declaration.

Form 121 - Part B

Part B of Form 121 is filled by the payer or deductor such as bank, company, or institution who receives the declaration. Form 121 part B should be filled by the person responsible for paying income. 

Details required in Part B

1. Name, address
2. TAN and PAN
3. Email ID and contact number
4. Tax year
5. Unique Identification Number (UIN)
6. Estimated income
7. Estimated total income
8. Aggregate income declared
9. Date of declaration received

What happens if You Don't Submit Form 121?

There is no statutory mandate to submit Form 121 when you are eligible. However, if you miss out submitting Form 121, TDS will be deducted against your income at applicable rates, even when the estimated total liability for the financial year is nil. Simply speaking, if you don't submit form 121 before the income is received, the only adverse consequence is that TDS is deducted at applicable rates.

Download Form 121 PDF

You can Download Form 121 PDF from the income tax portal.