The Income Tax Department has introduced a new form called Form 121.
This form will replace the old Forms 15G and 15H.
Its main purpose is to help taxpayers avoid TDS (Tax Deducted at Source) on income like bank interest and dividends.
This change comes after the new Income Tax rules came into effect from April 1, 2026.
One Form Instead of Two
Earlier, different forms were used based on age.
People below 60 years had to fill Form 15G, while senior citizens used Form 15H.
Now, Form 121 will be used by everyone.
This makes the process simpler and removes confusion.
How Form 121 Helps You
Form 121 allows you to declare that your total income is below the taxable limit.
If you submit this form to your bank or company on time, TDS will not be deducted from your income.
This is useful for:
Interest from bank FDs or post office deposits
Dividend income from shares
Pension, rent, and insurance commission
Income from mutual funds
Provident Fund (EPFO) withdrawals
Example to Understand Easily
Let’s say Sonika has multiple fixed deposits and also earns dividends from shares.
Normally, TDS would be deducted from this income.
But if she submits Form 121 in April, no TDS will be deducted for the financial year 2026–27.
Validity of Form 121
Once you submit Form 121, it stays valid for the entire financial year.
For example, if you submit it on April 2, it will be valid till March 31 of the next year.
Even if you submit it later, like in October, it will still be valid only till the end of that financial year.
What Happens If ou Don’t Submit It?
If you don’t submit Form 121, TDS may still be deducted once your income crosses a certain limit.
Even if your income is below the taxable limit, you will have to claim a refund later by filing your income tax return.
Key Benefits of Form 121
Replaces both Form 15G and 15H
Same form for all age groups
Helps avoid unnecessary TDS deduction
Covers multiple income sources
Valid for the full financial year
Final Take
Form 121 is a simple and useful step to make tax processes easier.
If your income is below the taxable limit, submitting this form on time can save you from unnecessary deductions and extra paperwork later.
