A big change in tax rules for senior citizens started on April 1, 2026. Form 15H, which was used earlier to avoid TDS (Tax Deducted at Source), has been discontinued.
It is now replaced by a new Form 121. This update comes under the Income Tax Act 2025, which aims to make tax filing simpler and reduce the hassle of dealing with multiple forms.
Single Form for All Eligible Taxpayers
Earlier, there were two separate forms:
Form 15G – for taxpayers under 60 years
Form 15H – for senior citizens
Now, both forms have been merged into Form 121, which can be used by all eligible taxpayers. Senior citizens no longer need to remember different forms, as the system will automatically apply the correct rules based on age.
How and When to Use Form 121
You can submit Form 121 if your total tax liability is zero and your income is below the basic exemption limit. This form is given to banks or financial institutions so they do not deduct TDS on your income.
Income Covered by Form 121
Form 121 applies to the same types of income as before, including:
Interest from bank FDs and savings accounts
Pension income
Mutual fund earnings
Dividends
Insurance payouts
Rental income
This change simplifies the process for senior citizens, reduces paperwork, and makes it easier to avoid TDS.
