If you’ve ever been confused about whether to submit Form 15G or 15H to avoid TDS, that confusion may now be a thing of the past. From April 1, a single form, i.e., Form 121 has taken their place, bringing a noticeable change in how taxpayers handle TDS declarations.
Until now, the rule was simple but slightly divided. Individuals below 60 years used Form 15G, while senior citizens used Form 15H to ensure that no tax was deducted at source if their income was below the taxable limit.
With the start of the new financial year, that distinction has been removed. Both groups will now use Form 121, making the process more uniform and easier to follow.
Form 121 is a self-declaration that allows individuals to request that no TDS be deducted on certain types of income. This usually includes interest earned from bank deposits, post office schemes, or similar sources.
The idea remains the same as before, i.e., if your total income is below the taxable limit, you can submit this form to avoid TDS. What has changed is the format and the legal backing under the new tax law.
Earlier, Forms 15G and 15H were governed by Section 197A of the Income-tax Act, 1961, along with Rule 29C of the old rules.
Now, under the new Income-tax Act, 2025, Form 121 is introduced under Section 393(6), supported by Rule 211 of the Income-tax Rules, 2026.
In simple terms, while the purpose of the form remains the same, it now falls under a new legal framework that aims to simplify and modernise tax processes.
The new form can be used by resident individuals, whether they are below or above 60 years of age. Hindu Undivided Families are also eligible to submit it, provided they meet the conditions.
However, companies and firms cannot use this form. Non-residents are also not allowed to file it.
The key condition remains unchanged, i.e., your estimated total income for the year should be below the taxable limit.
Form 121 is divided into two parts. The first part is filled by the person making the declaration. This includes basic details such as name, PAN, address, date of birth, and contact details. You also need to mention the type of income, the estimated amount, and your total expected income for the year. In some cases, details of income tax returns filed in the past two years may also be required.
The second part is filled by the person or institution paying the income, such as a bank. This section records details of the payer along with information about the declaration received.
To submit Form 121, you will need your PAN, which is mandatory, along with details of the income or investment for which you want to avoid TDS. Proof of age may be required in some cases, along with bank account details, especially if the declaration relates to interest income.
In other words, the introduction of Form 121 is part of a broader effort to simplify the tax system under the new Income-tax Act, 2025. By removing the need to choose between two forms, the government is trying to make compliance easier, especially for those who are not very familiar with tax rules.
For taxpayers, the change may seem small, but it removes a common point of confusion and brings a more straightforward approach to managing TDS.