Everything you need to know about the new unified TDS exemption form under Income Tax Act 2025. Learn eligibility, filing process, UIN system & key changes.
From April 1, 2026, Form 15G and Form 15H no longer exist. They have been replaced by a single unified Form 121 under the Income Tax Act 2025. If you previously filed Form 15G/15H to avoid TDS, you MUST submit fresh Form 121 for Tax Year 2026-27. Old forms DO NOT carry forward!
Form 121 is the new unified self-declaration form under Section 393(6) of the Income Tax Act 2025 that allows resident taxpayers to prevent TDS deduction on interest, dividends, and other incomes when their total tax liability is zero.
For decades, taxpayers used two different forms to avoid TDS:
This dual-form system created confusion about eligibility, documentation, and submission. The Income Tax Act 2025 simplifies this by consolidating both forms into a single Form 121 applicable to all eligible taxpayers regardless of age.
Two Different Forms:
Issues:
One Unified Form:
Benefits:
Form 121 serves the same purpose as Form 15G/15H — preventing TDS when your total tax liability is zero. Only the form name and structure have changed. The fundamental concept remains identical.
Under the old Income Tax Act 1961, Forms 15G and 15H were governed by Section 197A.
Under the new Income Tax Act 2025, the provision has been renumbered to Section 393(6), which states:
"A recipient of income may furnish a written declaration in Form 121 to the payer that the tax on his estimated total income of the tax year will be nil."
Section 393(6) is part of the comprehensive Section 393, which consolidates all TDS provisions under the new Act.
Form 121 can be filed by:
NOT eligible:
The most important eligibility criterion is that your estimated total tax liability for the tax year must be NIL.
This means:
New Restriction (Effective April 1, 2026):
For individuals below 60 years, there is an aggregate income ceiling. Even if your final tax is zero due to Section 87A rebate, you CANNOT file Form 121 if your total income exceeds the basic exemption limit.
Example:
Total Income: ₹7,00,000
Tax computed: ₹15,000
Less: Section 87A rebate: ₹15,000
Final tax: ₹0
Can you file Form 121?
❌ NO — because total income (₹7L) exceeds basic exemption limit (₹4L)
This restriction does NOT apply to senior citizens (60+)
| Category | Age | Basic Exemption Limit | Can File Form 121 If... |
|---|---|---|---|
| Individual | Below 60 years | ₹4,00,000 (New Regime) ₹2,50,000 (Old Regime) |
Total income ≤ Basic exemption |
| Senior Citizen | 60 to 80 years | ₹3,00,000 (Old Regime) ₹4,00,000 (New Regime) |
Total tax liability = Nil |
| Super Senior Citizen | Above 80 years | ₹5,00,000 (Old Regime) ₹4,00,000 (New Regime) |
Total tax liability = Nil |
| HUF | N/A | ₹4,00,000 (New Regime) ₹2,50,000 (Old Regime) |
Total income ≤ Basic exemption |
You can submit Form 121 to prevent TDS on the following types of income:
| Income Type | Description | TDS Section (Old Act) | TDS Threshold |
|---|---|---|---|
| Interest on Securities | Bonds, debentures, government securities | Section 193/ Section 393 | ₹10,000/year |
| Dividends | From Indian companies | Section 194Section 393 | NIL |
| Interest (Banks/Post Office) | FD interest, RD interest, savings account | Section 194A/Section 393 | ₹50,000/year (₹1,00,000 for seniors) |
| Units of Mutual Funds | Income from units of specified mutual funds | Section 194K/Section 393 | NIL |
| NSS/NSC Interest | National Savings Schemes | Section 193 | ₹10,000/year/Section 393 |
| Life Insurance Maturity | Taxable portion of LIC maturity | Section 194DA | ₹1,00,000/Section 393 |
| Compensation on Land Acquisition | Enhanced compensation | Section 194LA/Section 393 | ₹2,50,000 |
| EPF Withdrawal | Premature EPF withdrawal | Section 192A/Section 392 | ₹50,000 |
HUFs CANNOT file Form 121 for dividend income. This restriction existed in Form 15G and continues under Form 121.
Filing Form 121 is simple and can be done either online (if your bank/payer offers it) or offline (physical submission).
Ensure your estimated total income for Tax Year 2026-27 will result in ZERO tax liability.
Most banks now offer Form 121 submission through net banking:
Provide the following information:
Check the declaration box confirming:
Click Submit. The system will:
Save the acknowledgment PDF for your records. It contains:
Download from Income Tax Department website: www.incometax.gov.in/iec/foportal/
Or get a physical copy from your bank branch
Fill all fields in Part A manually with blue/black pen
Ensure handwriting is clear and legible
Sign in the designated space
For HUF: Karta must sign
Visit bank branch and submit to Fixed Deposit department
Submit separate forms to each payer (if you have FDs in multiple banks)
Bank will fill Part B and assign UIN
Collect stamped acknowledgment copy
One of the smartest improvements in Form 121 is the Unique Identification Number (UIN) system.
UIN is a unique code assigned to each Form 121 declaration. It contains:
Format: ABCDE1234F-2026-27-001
Why it matters:
Old System (Form 15G/15H):
Each bank generated separate UINs. Same PAN + Same year could have different UIINs at different banks, causing tracking issues.
New System (Form 121):
Centralized UIN structure ensures consistency. The UIN format is standardized and links directly to Income Tax Department database.
Critical Timing Rule: Form 121 must be submitted BEFORE the income is credited or paid.
| Income Type | When to Submit | Why |
|---|---|---|
| Bank FD Interest | Before March 31 (year-end) or before quarterly interest credit | Interest is credited quarterly/annually. TDS is deducted at credit time. |
| Savings Account Interest | Before March 31 | Interest credited once a year on March 31 |
| Dividend | Before dividend payment date | TDS deducted when dividend is paid |
| EPF Withdrawal | Before submitting withdrawal request | TDS calculated at withdrawal processing time |
| Insurance Maturity | At least 15 days before maturity date | Gives insurance company time to process |
Submit Form 121 in early April (first week) for the entire Tax Year 2026-27. This ensures no TDS is deducted throughout the year. If you submit after interest is credited, TDS will already be deducted and you'll need to claim refund via ITR.
Fields to fill:
| Field 1: | Name of Declarant |
| Field 2: | PAN (Mandatory) |
| Field 3: | Status (Individual / HUF) |
| Field 4: | Residential Status (Resident) |
| Field 5: | Complete Address |
| Field 6: | Email ID |
| Field 7: | Mobile Number |
| Field 8: | Aadhaar Number (Optional) |
| Field 9: | Tax Year (2026-27) |
| Field 10: | Estimated Total Income for the Tax Year |
| Field 11: | Income details with respect to which declaration is being made (tick applicable boxes) |
| Field 12: | Verification, Place, Date, Signature |
The payer fills:
| Aspect | Form 15G / 15H (Old) | Form 121 (New) |
|---|---|---|
| Number of Forms | Two separate forms (15G and 15H) | ✅ One unified form |
| Age Distinction | 15G for <60, 15H for ≥60 | ✅ No age-based distinction |
| Legal Provision | Section 197A (IT Act 1961) | ✅ Section 393(6) (IT Act 2025) |
| UIN System | Separate UIINs per payer | ✅ Standardized UIN with PAN-Tax Year-Serial |
| Online Filing | Limited bank support | ✅ Most banks offer online submission |
| Aadhaar Field | Not mandatory | ✅ Optional but recommended |
| Quarterly Reporting | Form 26AS | ✅ Form 140 (quarterly TDS statement) |
| Validity | One financial year | ✅ One tax year (same duration) |
| Eligible Entities | Individuals, HUFs | ✅ Same (Individuals, HUFs) |
| Income Ceiling (Below 60) | Could file if rebate makes tax zero | ⚠️ CANNOT file if income > basic exemption (even if rebate makes tax zero) |
Profile:
Analysis:
Basic exemption: ₹4,00,000
Total income: ₹95,000
Tax liability: Nil
Can file Form 121? ✓ YES
Action: Submit Form 121 to bank in early April 2026 to prevent TDS on FD interest throughout the year.
Profile:
Analysis:
Basic exemption (New Regime): ₹4,00,000
Total income: ₹2,80,000
Tax liability: Nil
Can file Form 121? ✓ YES
Action: Submit separate Form 121 to each of the 3 banks (SBI, HDFC, ICICI). One form per payer.
Profile:
Tax Calculation (New Regime):
Taxable income: ₹6,95,000
Tax computed: ₹14,750
Less: Section 87A rebate: ₹14,750
Final tax: ₹0
Can file Form 121? ✗ NO
Why? Total income (₹6,95,000) exceeds basic exemption limit (₹4,00,000). Even though final tax is zero due to rebate, Form 121 cannot be filed by individuals below 60 with income > basic exemption.
Result: Bank will deduct TDS. Mr. Anil must file ITR and claim refund.
Profile:
Analysis:
Total income: ₹4,50,000
Basic exemption: ₹4,00,000
Can file Form 121? ✗ NO
Why? Income exceeds basic exemption limit.
Alternative: Can apply for lower TDS certificate under Section 395(1) (old Section 197) if actual tax rate is lower than 10%.
If you are eligible but do NOT submit Form 121:
Without Form 121:
FD Interest: ₹80,000
TDS @ 10%: ₹8,000
Amount credited: ₹72,000
With Form 121:
FD Interest: ₹80,000
TDS: ₹0
Amount credited: ₹80,000
Benefit: You get ₹8,000 immediately instead of waiting 6 months for refund!
Every taxpayer who previously filed Form 15G/15H must proactively submit Form 121 afresh to each payer for Tax Year 2026-27. Silence or continuation of old forms does NOT carry forward. This is a NEW declaration under a NEW Act.
As per EPFO's web circular dated April 13, 2026, Form 121 is now mandatory for EPF withdrawals claiming TDS exemption.
When submitting EPF withdrawal request:
Common Errors to Avoid:
Warning: If Form 121 is submitted after withdrawal processing starts, TDS may already be deducted at 10%. You'll then need to claim refund via ITR.
Form 121 is a self-declaration. You are certifying that your tax liability is zero. Making a false declaration has serious consequences:
| Violation | Penalty |
|---|---|
| False Declaration (Actual tax liability is not zero) |
• Penalty under Section 270A • 50% to 200% of tax sought to be evaded • Interest @ 1% per month on short-payment |
| Deliberate Misrepresentation (Fraudulent income disclosure) |
• Prosecution under Section 276C • Imprisonment: 6 months to 7 years • Plus fine |
| Non-Filing of ITR (After filing Form 121) |
• Late filing penalty: ₹5,000 • Interest on unpaid tax @ 1% per month • Income mismatch scrutiny |
The new Income Tax Act 2025 integrates Form 121 declarations with:
Mismatches are automatically flagged. Ensure your declaration is accurate!
Answer: YES.
Most major banks now offer online Form 121 submission through net banking/mobile banking. Check your bank's portal under "Tax Forms" or "e-Services" section.
Answer: YES.
Form 121 must be submitted to each payer separately. If you have FDs in 3 different banks, you need to file 3 separate Form 121s.
Answer: NO.
Form 121 is only for resident individuals and HUFs. NRIs cannot file Form 121. TDS provisions for NRIs are different (higher rates apply).
Answer: NO, but recommended.
Aadhaar is optional in Form 121. However, providing it helps in faster verification and better integration with Income Tax databases.
Answer: You should inform the payer.
If your actual income during the year becomes taxable (exceeding exemption limit), you should ideally inform the payer to start deducting TDS. Alternatively, pay advance tax yourself to avoid interest liability.
Answer: One Tax Year only.
Form 121 is valid only for the tax year mentioned in the form (e.g., 2026-27). You need to submit fresh Form 121 every year in April.
Answer: YES.
Senior citizens (60+) and super senior citizens (80+) can file Form 121. There is no age-based restriction in the new form.
Answer: Claim refund in ITR.
If TDS is deducted because you didn't file Form 121, you can claim the full refund when filing your Income Tax Return. The TDS will be credited to your account, and refund will be processed.
Our CA experts can help you assess eligibility, file Form 121 correctly, and ensure full TDS compliance under the new Income Tax Act 2025.
View Tax Services Talk to Expert✓ Income Tax Act 2025 Experts • ✓ Form 121 Filing • ✓ TDS Optimization
Form 121 represents a smart simplification in India's tax system. By merging Form 15G and Form 15H into one unified declaration, the Income Tax Act 2025 has:
Key Takeaways:
If you previously filed Form 15G or 15H, make sure to submit Form 121 in early April 2026 to continue enjoying TDS exemption. The process is simple, the benefits are significant, and the compliance is now easier than ever.
This article is for educational purposes based on the Income Tax Act 2025 and Income Tax Rules 2026. Tax laws are subject to amendments and clarifications. Always verify your eligibility before filing Form 121 and consult a qualified Chartered Accountant for personalized advice. E Tax Expert is not responsible for actions taken based solely on this information.
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