From April 1, 2026, the Government of India has introduced Form 121, replacing the existing Form 15G and Form 15H for TDS declarations. This change is part of the updated Income Tax rules aimed at simplifying the process for taxpayers who want to avoid Tax Deducted at Source (TDS) on eligible income such as bank interest.
For bank customers, this new form will make the declaration process simpler, faster, and more streamlined.
What is Form 121?
Form 121 is a single unified declaration form that allows eligible taxpayers to declare that their income is below the taxable limit so that TDS is not deducted on interest income and certain other payments.
Earlier, taxpayers had to submit:
- Form 15G – for individuals below 60 years
- Form 15H – for senior citizens (60 years and above)
With the introduction of Form 121, both forms are replaced by one common declaration format.
Major Changes Introduced with Form 121
1. Single Form for All Individuals
The biggest change is the removal of age-based forms. Both individuals and senior citizens will now submit Form 121.
2. Simpler Language
The form uses simpler terminology. For example:
- “Name of Assessee” is replaced with “Name”
This makes it easier for customers to understand and fill.
3. Tax Year Instead of Assessment Year
The form now uses Tax Year instead of Assessment Year.
Example:
- Tax Year 2026–27
This aligns the declaration with the financial year in which income is earned.
4. Reduced Documentation
Only PAN is mandatory, and Aadhaar is not required in the declaration.
Additionally, the form requires ITR details for the last two years, compared to the earlier requirement of up to six years.
5. Fewer Technical Details
Customers no longer need to provide:
- Specific TDS section details
- Investment account numbers
This simplifies submissions for income such as:
- Bank Fixed Deposits
- Recurring Deposits
- Dividends
- Provident Fund withdrawals
Eligibility Criteria for Submitting Form 121
Individuals Below 60 Years
They can submit the declaration if their total estimated income remains below the basic exemption limit:
- ₹4,00,000 under the new tax regime
- ₹2,50,000 under the old tax regime
Senior Citizens (60 Years and Above)
Senior citizens can submit Form 121 if their total tax liability is zero, even if their total income exceeds the basic exemption limit due to deductions.
This can include income such as:
- Bank interest
- Rental income
- Mutual fund income
- Insurance commission
Structure of Form 121
The draft Form 121 is a one-page declaration under Section 393(6). The key fields include:
| Field | Description |
| Name | Full name of the declarant |
| PAN | Permanent Account Number (mandatory) |
| Status | Individual or HUF |
| Date of Birth | For age verification |
| 60+ Status | Yes/No checkbox |
| Address | Complete residential or communication address |
| Contact Details | Country code and mobile number |
| Tax Year | Example: 2026–27 |
| Nature of Income | Interest, dividends, etc. |
| Estimated Income | Total income covered by the declaration |
| Other Forms Filed | Details of any Form 121 filed earlier in the same year |
| Last ITR Details | ITR acknowledgement numbers for the previous two years |
| Declaration & Signature | Signature with date |
How Banks Will Process Form 121
Customers can submit Form 121 through two methods:
1. Online Submission
Most banks will allow submission through:
- Net banking
- Mobile banking apps
2. Offline Submission
Customers can also submit the form physically at their bank branch or to the payer before the income payout.
Banks will digitally verify:
- PAN details
- Eligibility criteria
If the estimated income is incorrect, TDS may be deducted later.
What This Means for Bank Customers
Customers with the following income sources should submit Form 121 every financial year starting FY 2026-27:
- Fixed Deposit interest
- Recurring Deposit interest
- Savings account interest
- Pension-related payouts
This helps avoid 10% TDS deduction when interest crosses the threshold:
- ₹40,000 for regular individuals
- ₹50,000 for senior citizens
Final Thoughts
The introduction of Form 121 marks an important step toward simplifying TDS declarations for bank customers. By replacing Forms 15G and 15H with a single unified form, the government aims to make compliance easier, faster, and more transparent.
However, taxpayers must ensure that their estimated income is declared accurately, as incorrect declarations can lead to TDS deductions or tax notices later.
