Form 121 Income Tax Act 2025: Replace 15G & 15H

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What is Form 121?

Form 121 is a self-declaration filed under the Income Tax Act 2025 and the Income Tax Rules, allowing eligible taxpayers to ensure no deduction of tax at source (TDS) on specified incomes such as interest on bank deposits, post office deposits, or other specified incomes, when their total income is below the taxable limit..

So, what income does it cover?

Form 121 applies to a range of specified income, including:

Interest income (fixed deposits, savings accounts)
Rent
Dividends
Pension payments
Insurance-related payouts

Who can use Form 121 and who cannot?

The form is available to¹:

Resident individuals both below and above 60 years of age
Hindu Undivided Families (HUFs)
Other specified entities

However, companies, partnership firms, and non-residents are excluded.

How Does Filing Work?

Filing is optional, but if you choose to file, it must be done separately for each payer before the income is paid or credited to your account.
A valid PAN is mandatory — declarations without a PAN are considered invalid.
Each payer is required to assign a Unique Identification Number (UIN) to every declaration received.
Payers must report all received declarations every month and disclose them in their quarterly TDS statements in Form 140. Mention the UIN for records to align.

Apart from PAN, other documents needed are²:

TAN of the payer you are filing the declaration with
Age proof
Details of the income or investment for which TDS exemption is being sought
Bank account details, applicable for interest-bearing instruments

What's New Compared to Forms 15G and 15H?²

Previously, Form 15G was filed by individuals below 60 and HUFs, while Form 15H was exclusively for senior citizens aged 60 and above².

Form 121 merges both into one and brings several structural improvements:

Single unified form eliminates the need to choose between 15G and 15H, reducing administrative complexity.
Redundant columns removed and explanatory notes added to guide accurate filing.
Pre-filled data fields and built-in validation checks make the process faster and error-free.
Improved transparency and reporting accuracy for tax authorities.

Key Takeaways

Form 121 under the Income Tax Act 2025 replaces Forms 15G and 15H as a single, unified TDS declaration form.
It covers resident individuals, HUFs, and specified entities earning income from interest, rent, dividends, and pensions.
PAN is mandatory, and the form must be filed separately with each payer before income is paid or credited.
It reduces compliance burden through digitisation, pre-filled data, and built-in validation checks.

Conclusion

Form 121 makes TDS self-declaration easier and better structured, a practical step forward under the new Income Tax Act 2025. If your total income falls below the taxable threshold, filing Form 121 with the right documents is all it takes to ensure unnecessary tax deductions don't eat into your earnings.

Source

FAQs

What is the difference between Form 121 and the old Forms 15G and 15H?

Forms 15G and 15H were introduced under Sections 197A(1), 197A(1A), and 197A(1C) of the Income Tax Act 1961 and served as separate declarations for different age groups. Form 121, introduced under Section 393(6) of the Income Tax Act 2025, replaces both with a single consolidated form serving the same purpose with a simpler process.

Who can file Form 121?

Form 121 is strictly available to resident individuals, HUFs, and other specified entities whose total estimated income for the year falls below the taxable threshold.

Why is UIN important in Form 121?

The UIN is assigned by the payer to each declaration and is used to reconcile records with Form No. 140 and the IT Department's database. Missing or incorrect UINs will lead to penalties under the relevant provisions.

Form 121 of the Income Tax Act, 2025