Form 121: The New TDS Declaration Form That Replaces 15G and 15H

TL;DR Summary: Form 121 is the new unified TDS declaration form replacing Forms 15G and 15H under the Income-tax Act, 2025. Eligible resident individuals, HUFs, and specified entities can file it annually before income is credited to avoid TDS on interest, dividends, rent, pension, and more. Businesses and taxpayers must update compliance processes, ensure valid PAN details, and submit separate declarations to each payer on time.

For years, Forms 15G and 15H have been the go-to declarations for taxpayers who wanted to avoid TDS on their interest, dividend, or other passive income. If your total income was below the taxable limit, you simply submitted one of these forms to your bank or payer and that was that — no TDS, no refund chase.

That changes now. The Income-tax Act, 2025 has replaced both Forms 15G and 15H with a single, unified declaration — Form No. 121. If you are a taxpayer, a finance professional, or a business that handles TDS compliance, this is something you need to get familiar with before your next transaction cycle.

Stay informed with our Latest Tax & Compliance Updates to keep up with changes under the Income-tax Act, 2025.

What exactly is Form 121?

Form 121 is a declaration under Section 393(6) of the Income-tax Act, 2025. The idea behind it is the same as the old 15G and 15H — a taxpayer declares to the payer that their estimated total income for the year is NIL, and on that basis, the payer does not deduct TDS.

What has changed is the structure. Earlier, you had two separate forms — Form 15G for taxpayers below 60 years and Form 15H for senior citizens. Now both categories use the same Form 121. One form, one process, all taxpayers.

Quick Reference: How Form 121 Maps to the Old Forms

Particulars	Old Framework	New Framework
Governing Act	Income-tax Act, 1961	Income-tax Act, 2025
Relevant Section	197A(1), 197A(1A), 197A(1C)	Section 393(6)
Applicable Rule	Rule 29C, IT Rules 1962	Rule 211, IT Rules 2026
Form for below 60 years	Form 15G	Form 121
Form for 60 years & above	Form 15H	Form 121
Single unified form?	No	Yes

Who can file Form 121?

Eligibility is fairly straightforward. The following taxpayers can submit Form 121:

•         Resident individuals — regardless of age (below 60 as well as 60 and above)

•         Hindu Undivided Families (HUFs)

•         Other specified entities that meet the criteria under the Act

And just as important — who cannot file it:

•         Companies

•         Firms and LLPs

•         Non-Resident Indians (NRIs)

If you fall into any of the above three categories, Form 121 is not available to you. You would need to explore other options such as applying for a lower or nil deduction certificate under Section 197 of the Act.

Which Incomes are covered under Form 121?

Form 121 can be submitted in respect of the following types of income where TDS is otherwise applicable:

•         Interest on bank deposits — fixed deposits, recurring deposits, savings accounts

•         Dividend income

•         Income from Mutual Funds

•         Payments from Life Insurance Policies

•         Insurance Commission

•         Rent

•         PF withdrawals and Pension

If you earn any of the above and your total estimated income for the year is below the taxable threshold, Form 121 is the right tool to prevent TDS from being deducted in the first place.

Key Things to Know Before You File Form 121

Your PAN Must Be Valid

Quoting a valid PAN is mandatory in Form 121. If PAN is not provided or is incorrect, the declaration is treated as invalid — and the payer must then deduct TDS at the applicable rate.

File it Before the Transaction, Not After

Form 121 must be submitted to the payer before the income is credited or paid. There is no provision to submit it retroactively and claim that TDS should not have been deducted. If you miss the window, the TDS gets deducted and you are back to filing for a refund in your ITR. Plan ahead.

Multiple Payers Means Multiple Submissions

This is where many taxpayers go wrong. If you have FDs with two banks and also receive dividend income from a mutual fund, you need to submit Form 121 separately to each of these payers. One declaration does not cover all sources of income — each payer needs their own copy.

It is Valid for One Tax Year Only

Form 121 is not a one-time submission. It needs to be filed afresh for every Tax Year. If you submitted it this year and forget to submit it next year, TDS will be deducted. Keep a calendar reminder.

Payers Have Their Own Compliance Obligations

Once a payer receives Form 121 from a declarant, they are not done. They must submit copies of all declarations electronically on the Income-tax Department’s e-filing portal (this is Part B of Form 121). Additionally, transactions on which TDS was not deducted due to receipt of Form 121 must be reported in the quarterly TDS return filed in Form No. 140. This means the department has full visibility into these transactions even when TDS is not deducted.

What This Means in Practice

For Individual Taxpayers and Senior Citizens

If your income comes primarily from bank interest, dividends, or pension and your total income for the year is below the taxable limit, Form 121 keeps the process simple. You submit it once to each relevant payer at the start of the year, and your income comes to you without any TDS deduction. No waiting for refunds, no excess tax outflow during the year.

For senior citizens in particular, the consolidation into a single form is a practical improvement. Earlier, the distinction between 15G and 15H sometimes caused confusion. Form 121 removes that ambiguity entirely.

For Businesses Acting as Payers

If your business pays interest, rent, insurance commission, or similar income to resident individuals or HUFs, you need to update your TDS compliance process. Your accounts and payroll teams should be trained to recognize Form 121, verify PAN, and ensure timely electronic reporting on the e-filing portal. The quarterly TDS return (Form 140) must also correctly reflect transactions covered under Form 121 declarations. Businesses may require professional Taxation Advisory Services to update their TDS compliance framework

This is not just a form name change — it requires an actual process update on the payer side.

Common Mistakes to Avoid

1.       Submitting Form 121 after the income has already been credited — TDS would have been deducted by then

2.       Filing with one payer and assuming it covers all income sources — each payer needs a separate declaration

3.       Skipping the submission in subsequent years assuming last year’s form is still valid — it is not

4.       Quoting an incorrect or invalid PAN — the declaration becomes void

5.       Companies or firms attempting to use Form 121 — they are not eligible

6.       Filing Form 121 when your total income actually exceeds the taxable limit — this is a false declaration and attracts penal consequences under the Act

Form 121 — At a Glance

Particulars	Details
Replaces	Form 15G and Form 15H
Governing Section	Section 393(6), Income-tax Act 2025
Governing Rule	Rule 211, IT Rules 2026
Who Can File	Resident individuals, HUFs, specified entities
Who Cannot File	Companies, Firms/LLPs, Non-Residents
PAN Required	Yes — mandatory, invalid without it
Validity Period	One Tax Year — must be filed every year
When to Submit	Before the transaction / income credit date
Submit to	Each payer separately
Payer Reporting	Electronically on e-filing portal (Part B)
TDS Return	Reported in Form No. 140 (quarterly)

How PKC Can Help transition to Form 121?

Whether you are an individual investor managing multiple income sources, a senior citizen navigating the new Act, or a business updating your TDS compliance framework — the transition to Form 121 requires attention to detail.

At PKC Management Consulting, our taxation team works closely with clients to ensure they stay ahead of regulatory changes without unnecessary disruption. From advising on eligibility and timely submission to helping businesses update their payer compliance processes, we handle the complexity so you do not have to.

Have questions about Form 121 or your TDS compliance under the new Income-tax Act, 2025? Get Expert Help with Form 121 Compliance

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