From 1 April 2026, India’s income tax framework will undergo significant changes with the implementation of the Income Tax Act, 2025. One of the important updates is that Form 15G and Form 15H have been replaced by Form 121. If you previously submitted Form 15G to avoid Tax Deducted at Source (TDS) on eligible interest income, you should now understand how Form 121 works under the new law.

Many taxpayers, especially individuals earning interest from fixed deposits, recurring deposits, post office schemes, or other investments, often have no taxable income but still face TDS deductions. The new declaration process aims to simplify tax compliance while ensuring that eligible taxpayers are not subjected to unnecessary TDS.

Whether you are a salaried employee, a pensioner, or someone earning interest income, understanding the latest TDS declaration rules can help you avoid cash flow issues and unnecessary refund claims. At Sharda Associates, we help individuals and businesses stay updated with the latest income tax provisions and ensure complete compliance with the new tax regime.

 Form 121 (Earlier Form 15G): Quick Facts

What Is Form 121 (Earlier Form 15G)?

Form 121 is a self-declaration form introduced under the Income-tax Act, 2025, replacing the earlier Form 15G and Form 15H. It enables eligible taxpayers to declare that their estimated tax liability for the financial year is nil, allowing banks and other deductors to refrain from deducting TDS on eligible income.

Earlier, taxpayers below the age of 60 generally submitted Form 15G, while senior citizens used Form 15H. Under the revised law, these declarations have been consolidated into Form 121, making the compliance process more streamlined and easier for taxpayers as well as deductors.

The objective of Form 121 remains the same—to prevent unnecessary tax deduction when an individual’s total taxable income is below the applicable exemption limit. Instead of waiting until the end of the financial year to claim a refund through an income tax return (ITR), eligible taxpayers can submit the declaration in advance and avoid TDS altogether.

This change also supports the government’s broader objective of simplifying tax administration while reducing paperwork and improving compliance under the new tax framework.

Who Can Submit Form 121?

Not every taxpayer is eligible to submit Form 121. The declaration can generally be submitted by resident taxpayers who satisfy the prescribed conditions under the Income-tax Act, 2025.

Typically, you may submit Form 121 if:

• You are a resident taxpayer.
• Your estimated tax liability for the financial year is nil.
• Your income includes eligible payments on which TDS is normally deducted.
• You possess a valid Permanent Account Number (PAN).
• You satisfy all conditions prescribed by the Income Tax Department.

Before submitting the declaration, taxpayers should carefully estimate their annual income. Providing incorrect information may attract penalties under the applicable provisions of the Income-tax Act.

Benefits of Filing Form 121

Submitting Form 121 offers several practical benefits for eligible taxpayers.

Avoid Unnecessary TDS

The biggest advantage is that banks and financial institutions will not deduct TDS from eligible income when all prescribed conditions are satisfied.

Better Cash Flow

Instead of waiting months to receive an income tax refund, taxpayers continue receiving the full amount of eligible income throughout the financial year.

Simplified Tax Compliance

The new declaration process reduces paperwork by replacing multiple declaration forms with a single unified form.

Faster Financial Planning

Since TDS is not deducted unnecessarily, individuals can plan investments and monthly finances more effectively without worrying about blocked funds.

Where Can Form 121 Be Submitted?

Eligible taxpayers can generally submit Form 121 with institutions responsible for deducting TDS, including:

• Banks
• Post Offices
• Cooperative Banks
• Financial Institutions
• Companies paying eligible interest
• Other notified deductors

Most leading banks also allow online submission through internet banking, making the process faster and more convenient.

Documents Required

Before submitting Form 121, keep the following documents ready:

• PAN Card
• Aadhaar Card
• Bank Account Details
• Investment Details
• Estimated Income Details
• Mobile Number
• Email Address

Accurate documentation helps avoid rejection of the declaration and ensures smooth processing by the deductor.

How to Fill Form 121?

Submitting Form 121 is a straightforward process if you have the required information ready. Most banks and financial institutions allow both online and offline submission.

Step 1: Verify Your Eligibility

Before filling out the form, estimate your total income for the financial year. Ensure that your total tax liability is nil under the applicable provisions of the Income-tax Act, 2025.

Step 2: Keep Required Documents Ready

You should have your PAN, Aadhaar, bank account details, and investment information readily available. Providing incorrect or incomplete information may result in rejection of the declaration.

Step 3: Complete the Declaration

Fill in your personal details, PAN, estimated income, and other required information accurately. Read the declaration carefully before signing or submitting it online.

Step 4: Submit the Form

Submit Form 121 to your bank, post office, or other eligible deductor before the interest payment is processed. Many banks also provide online submission through internet banking, making the process quick and convenient.

Common Mistakes to Avoid

Many taxpayers unintentionally make errors while submitting TDS declarations. Avoiding these common mistakes can help prevent unnecessary TDS deductions and future tax notices.

• Submitting the declaration without checking eligibility.
• Providing an incorrect PAN.
• Underestimating total annual income.
• Forgetting to submit the form at the beginning of the financial year.
• Providing inaccurate investment details.
• Assuming Form 121 eliminates the requirement to file an income tax return where applicable.

Always verify your estimated income before submitting the declaration to ensure compliance with the latest tax provisions.

Form 121 vs Form 15G vs Form 15H

The introduction of Form 121 simplifies the declaration process by replacing separate forms with a single declaration under the new tax law.

Why Choose Sharda Associates?

Understanding changing tax laws can be challenging, especially when new compliance requirements are introduced. Sharda Associates provides professional income tax consultancy and helps individuals, professionals, and businesses remain fully compliant with the latest tax regulations.

Our services include:

• Income Tax Return (ITR) Filing
• TDS Compliance and Advisory
• PAN and TAN Assistance
• Tax Planning Services
• Business Registration
• GST Registration
• MSME Registration
• Startup India Registration
• Financial and Tax Consultancy
• Expert Guidance on the Income-tax Act, 2025

With experienced professionals and personalized support, Sharda Associates helps clients manage tax compliance efficiently while minimizing errors and ensuring timely filings.

Frequently Asked Questions 

1. What is Form 121?

Form 121 is the new self-declaration form introduced under the Income-tax Act, 2025, replacing Form 15G and Form 15H for eligible taxpayers seeking relief from unnecessary TDS deductions.

2. Has Form 15G been discontinued?

Yes. From 1 April 2026, Form 15G has been replaced by Form 121 under the new Income-tax Act, 2025.

3. Why was Form 121 introduced?

Form 121 simplifies the TDS declaration process by replacing multiple forms with a single declaration framework.

4. Who can submit Form 121?

Eligible resident taxpayers whose estimated tax liability for the financial year is nil and who satisfy the prescribed conditions.

5. Is PAN mandatory for Form 121?

Yes. A valid PAN is generally required while submitting Form 121.

6. Can Form 121 be submitted online?

Yes. Most banks and financial institutions provide online submission facilities through internet banking.

7. Do I need to submit Form 121 every year?

Yes. If you continue to satisfy the eligibility conditions, the declaration generally needs to be submitted for each financial year.

8. What happens if I don’t submit Form 121?

The deductor may deduct TDS as per the applicable provisions. If excess tax is deducted, you may need to claim a refund while filing your Income Tax Return.