Form 121 Replaces Form 15G and 15H: Who Should File and Why It Matters

A long-standing compliance step for taxpayers has just become simpler. Effective 1 April 2026, Forms 15G and 15H have been replaced by a single declaration—Form 121—marking a shift towards a more streamlined and digitally aligned tax system.

What is Form 121?

Form 121 is a consolidated declaration that replaces Forms 15G and 15H. Eligible taxpayers can use it to request that no TDS be deducted on specified incomes, provided their tax liability for the financial year is nil.

It is important to note that Form 121 does not reduce your income or create a tax deduction. It simply prevents TDS from being deducted when you do not have any tax liability.

How is it Different from Forms 15G and 15H?

The key change is simplification. Taxpayers no longer need to choose between two forms. Form 121 replaces both Forms 15G and 15H, and a single declaration now applies to all eligible individuals, regardless of age. 

Earlier, the choice of form depended largely on whether the taxpayer was below or above 60 years. Now, the system is more streamlined, standardised, and better suited for digital processing.

Who Should File Form 121?

Eligible taxpayers with zero tax liability for the financial year can file Form 121, subject to prescribed conditions. 

This includes:

• Resident individuals below 60 years
• Resident senior citizens (60 years and above)
• Hindu Undivided Families (HUFs)
• Other eligible persons as specified

However, the following are not eligible:

• Non-residents
• Companies
• Firms

The most important condition remains that the estimated tax payable for the year must be nil.

What Is the Purpose of Filing Form 121?

Form 121 allows individuals with zero tax liability to avoid TDS being deducted upfront. 

It serves as a declaration to the payer that no tax is payable for the year, ensuring better cash flow by preventing unnecessary tax deductions.

Which Income Can Be Covered Under Form 121?

Form 121 applies to multiple income categories, including:

• Interest on deposits 
• Pension and PF withdrawals 
• Insurance commission 
• Rent 
• Mutual fund income 
• Life insurance policy payments 
• Dividends 

This makes it broader in scope than many taxpayers may assume. 

What Conditions Should Taxpayers Check Before Filing Form 121?

Before submitting Form 121, keep the following points in mind:

• Your estimated total income for the year should result in zero tax liability 
• You must fall under an eligible category (such as a resident individual or HUF) 
• PAN is mandatory; failure to provide it can result in higher TDS 
• The form must be submitted to each payer separately for the relevant financial year 

It is not a one-time submission that automatically applies across all income sources. 

How Should It Be Filed?

Form 121 can be submitted either in physical form or online. 

Under the new system, the payer is required to:

• Record the declaration 
• Quote your PAN 
• Assign a Unique Identification Number (UIN) 

This ensures proper tracking within the tax system.