Form 121 Income Tax (2026-27): Replace 15G/15H, Eligibility, How to Fill & Submit

Form 121 is the new self-declaration form under Section 393 of the Income Tax Act 2025 read with the Income Tax Rules 2026. The new Form 121 is a unified form which replaces both the old Form 15G and Form 15H effective from 1st April 2026 applicable for Tax Year 2026-27 and onwards. 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.

PAN is mandatory for Form 121. If you submit Form 121 without a valid PAN, the declaration will be treated as invalid. In such cases, the payer (your bank) is legally required to deduct TDS at 20% regardless of your income level. Always ensure your PAN is active and linked to your Aadhaar before submitting Form 121

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 of any age - unlike Form 15G (for taxpayers under 60 years) or Form 15H (for taxpayers aged above 60 years), 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 can only be submitted by eligible resident taxpayers whose estimated tax liability for the financial year is NIL. The following persons are not eligible to submit Form 121 for NIL TDS deduction:

Income Limits - Old Tax Regime vs New Tax Regime

Taxpayer is eligible to file Form 121 to avoid TDS deduction when the estimated tax liability of the taxpayer for the year is NIL. Unlike Form 15H, Form 121 does not provide a separate relaxation for senior citizens. Therefore, resident taxpayers, including senior citizens, must comply with the income limits applicable under the new regime.

Important Change for Senior Citizens

Under the old regime, Form 15H allowed senior citizens to furnish a declaration even if their total income exceeded the basic exemption limit, provided their final tax liability was nil.

However, Form 121 does not have a separate category for senior citizens or super senior citizens. As a result, senior citizens seeking to submit Form 121 must satisfy the condition that their total income is below the applicable basic exemption limit of Rs. 2.5 lakh under the old regime or Rs. 4 lakh under the new tax regime with nil tax liability. The earlier relaxation available under Form 15H, which allowed senior citizens to submit the declaration even when income exceeded the basic exemption limit (provided tax liability was nil due to deductions), is no longer available under Form 121.

TDS Thresholds - When Does TDS Apply?

TDS is deducted only when the income exceeds the specified threshold prescribed under the Income Tax Act. Therefore, when the income exceeds such limit and the taxpayer has failed to submit Form 121 when applicable, TDS is deducted before making such payments even when the income is below the basic exemption limit.

Note: Even if your income exceeds the TDS threshold, you can submit the applicable declaration form to avoid TDS, provided your estimated tax liability for the financial year is Nil.

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 Online 

You can submit Form 121 either online through your bank's internet banking/mobile banking portal or by visiting the branch where your deposit account is held. Most banks are expected to provide a dedicated option for Form 121 submission similar to the existing Form 15G or 15H process.

1. Submit Form 121 Through SBI Net Banking

Step 1: Log in to SBI Internet Banking.

Step 2: Navigate to e-Services or Tax Services.

Step 3: Select Form 121 Declaration (or the equivalent option provided by SBI).

Step 4: Verify your PAN, account details, and estimated income.

Step 5: Submit the declaration and save the acknowledgement for future reference.

2. Submit Form 121 Through HDFC Bank

Step 1: Log in to the HDFC NetBanking portal.

Step 2: Go to Request Services or Tax Services.

Step 3: Select the Form 121 submission option.

Step 4: Enter the required income and tax details.

Step 5: Review and submit the declaration online.

3. Submit Form 121 Through ICICI Bank iMobile

Step 1: Log in to the ICICI iMobile app or Internet Banking portal.

Step 2: Navigate to Services or Tax Forms.

Step 3: Choose Form 121 Declaration.

Step 4: Confirm your eligibility and fill in the required details.

Step 5: Submit the form and note the reference number.

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

ITR Disclosure Requirement in Form 121

Form 121 introduces additional reporting requirements compared to the existing Form 15G and Form 15H framework. While the exact disclosures may vary based on the prescribed format, taxpayers may be required to provide details relating to their income, PAN, and tax compliance history.

The objective is to focus on better verification of whether the taxpayer actually qualifies for non-deduction of TDS based on estimated nil tax liability.

Form 121 for Senior Citizens (Age 60+): Key Differences

Senior citizens were required to submit Form 15H to avoid TDS on interest income when their final tax liability is nil. However, with the introduction of Form 121 under the Income Tax Act, 2025, the rules have changed significantly.

Unlike Form 15H, Form 121 is a single declaration form applicable to all eligible resident taxpayers, irrespective of age. As a result, senior citizens must now follow the same eligibility conditions as other taxpayers.

Form 121 for PF Withdrawals

Employees who withdraw their Employees' Provident Fund (EPF) balance before completing five years of continuous service may be subject to TDS if the withdrawal amount exceeds the prescribed threshold. This TDS can be avoided if the estimated tax liability for the year is NIL and by submitting Form 121. 

1. How to Submit Form 121 for EPF Withdrawal

Step 1: Log in to the EPFO Member Portal. 

Step 2: Initiate the PF withdrawal claim.

Step 3: Provide Form 121 details, if required by EPFO.

Step 4: Verify your PAN, Aadhaar, and bank account details.

Step 5: Submit the claim and retain the acknowledgement for your records.

2. Example

Suppose Rahul resigns after working for 3 years and applies to withdraw his PF balance of Rs. 80,000. Since the withdrawal is before completing 5 years of service, TDS may apply. However, if Rahul's total income for the year is below the taxable limit and his estimated tax liability is nil, he can submit Form 121 to avoid TDS deduction on the PF withdrawal.

3. When is Form 121 Relevant for PF Withdrawals

• You are withdrawing PF before completing 5 years of continuous service.
• The withdrawal amount exceeds the applicable TDS threshold.
• Your estimated tax liability for the financial year is nil.
• You are eligible to furnish Form 121 under the prescribed rules.

Form 121 UIN: What Is It and Why Does It Matter?

A UIN (Unique Identification Number) is a unique reference number allotted by the deductor (such as a bank, post office, or EPFO) for every Form 121 received. The UIN is reported to the Income Tax Department and helps track declarations where TDS has not been deducted.

1. Why Is It Important?

• Helps verify that Form 121 was validly submitted.
• Enables the Income Tax Department to track and monitor declarations.
• Assists in resolving TDS related disputes or verification requests.
• Prevents duplicate or incorrect reporting of declarations.

Consequences & Penalties for Not Filing or Filing Incorrectly

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.

Form 121 vs Form 15G/15H: Transitioning from FY 2025-26

Form 121 marks a significant change in the TDS declaration process. Until FY 2025-26, eligible taxpayers used Form 15G or Form 15H to avoid TDS. From FY 2026-27 onwards, these forms are replaced by Form 121.

The biggest change is that Form 121 removes the age-based distinction between Form 15G and Form 15H. All eligible resident taxpayers will use the same form, subject to the prescribed income and nil tax liability conditions.

Download Form 121 PDF

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