Form 121: The New TDS Declaration Form Under Income Tax Act, 2025

With effect from 1st April 2026, Form 121 replaces Form 15G and Form 15H. 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. 

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. 

It allows resident individuals 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. 

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 

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

Difference Between Form 15G, Form 15H and Form 121

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.

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. 

Form 121 Download

Taxpayers can download the Form 121 PDF from the Income Tax Department website. 

• Navigate to the official website on the Income Tax Department
• Under “Income Tax Provisions” section select “Income Tax Forms (2026)”
• Enter the Form number 121 and click on search
• Open Form 121 and download the PDF