If you submitted Form 15G or 15H in previous years, you must now use Form 121. This guide explains exactly who can file it, what income it covers, how to submit it, and the mistakes that cause TDS to get deducted even after submission.
Why the Government Replaced 15G and 15H
The old system had two separate forms — 15G for taxpayers under 60 and 15H for those 60 and above. This created unnecessary complexity: a 59-year-old would file 15G one year and switch to 15H the next, with different eligibility rules, different conditions, and plenty of room for confusion.
Form 121 consolidates both into one age-neutral declaration. The core eligibility condition remains the same — your estimated tax liability for the financial year must be nil — but now a single form applies regardless of your age.
Who Can File Form 121?
You are eligible to submit Form 121 if you meet all three of the following conditions:
- You are a resident individual or HUF (Hindu Undivided Family)
- Your PAN is valid and operative
- Your estimated total tax liability for the financial year is nil
Not eligible:
- Companies and firms (regardless of income level)
- Non-resident Indians (NRIs)
- Anyone whose total income, after deductions, still attracts tax
Income Types Covered Under Form 121
Form 121 can be used to prevent TDS on the following income categories:
| Income Type | TDS Deducted By |
|---|---|
| Interest on bank fixed deposits | Banks, post offices, co-operative societies |
| Interest on savings accounts (above threshold) | Banks |
| Dividends from shares and mutual funds | Companies, AMCs |
| Income from mutual fund units | AMCs |
| PF withdrawals (below 5 years of service) | EPFO, private PF trusts |
| Life insurance payouts | Insurance companies |
| Rent (above threshold) | Payers of rent |
| Insurance commission | Insurance companies |
| Pension (certain categories) | Pension disbursing entities |
Form 121 vs Form 15G vs Form 15H — Key Differences
| Feature | Form 15G (old) | Form 15H (old) | Form 121 (new) |
|---|---|---|---|
| Applicable from | Pre-April 2026 | Pre-April 2026 | April 1, 2026 onwards |
| Who files it | Individuals below 60 | Individuals 60+ | Any age + HUFs |
| Governing law | Income Tax Act, 1961 | Income Tax Act, 1961 | Income Tax Act, 2025 |
| Age restriction | Yes (under 60 only) | Yes (60+ only) | None |
| HUFs covered | Yes | No | Yes |
| Tax liability condition | Must be nil | Must be nil | Must be nil |
How to Submit Form 121 — Step by Step
Check your eligibility
Estimate your total income for FY 2026–27 from all sources — salary, interest, dividends, rent, pension. Subtract applicable deductions. If the resulting taxable income carries zero tax liability, you can proceed.
Download the official form
Get the Form 121 PDF from the Income Tax Department at incometaxindia.gov.in. Do not use third-party PDFs — use only the official version to avoid rejection.
Fill Part A — Declarant Details
Enter your full name (exactly as on PAN card), PAN number, complete residential address, assessment year (2026–27), nature of income, estimated income amount, and total estimated income for the year.
For HUFs: Enter the HUF name in full — not the Karta’s individual name.
Fill Part B — Payer Details
Provide the payer’s name, address, and TAN. The payer institution completes Part B on their end after you submit.
Submit before income is credited
This is the most critical timing rule. Submit Form 121 before the income is paid or credited to your account. If you miss this window, TDS is already deducted and you will need to claim a refund when filing your ITR.
For FDs with monthly interest: submit in April, before the first interest credit of the financial year.
Submit separately to each payer
One form per payer, per financial year. Submit directly to each institution that pays you income — your bank, AMC, or insurance company.
- Online: Log in to net banking → Forms/TDS section → submit Form 121 digitally (e-verification via Aadhaar OTP or net banking)
- Offline: Download, fill, sign, and physically submit at your bank branch or the paying institution
Common Mistakes That Cause TDS to Get Deducted Anyway
1. Submitting after interest is credited
The single most common mistake. If your FD credits interest on April 5 and you submit Form 121 on April 10, TDS is already gone. Submit at the start of every financial year, before any income is credited.
2. Filing with only one bank when you have FDs in multiple banks
Each payer is independent. If you have deposits at SBI, HDFC, and a co-operative bank, you need three separate Form 121 submissions — one to each institution.
3. PAN errors
A single wrong character in your PAN invalidates the entire declaration. TDS will be deducted at 20% — the higher rate applicable when PAN is not correctly furnished. Double-check every character before submitting.
4. Underestimating total income
Include all income sources, not just the one you’re filing Form 121 for. If your actual income later crosses the taxable threshold, the declaration becomes incorrect and can attract penalties under the Income Tax Act.
5. Not resubmitting when deposits change
If you open a new FD or renew an existing one mid-year, you must submit Form 121 again to that institution. The form covers a specific financial year and specific income — it does not automatically cover new or renewed deposits.
6. Using old 15G/15H forms
From April 1, 2026, institutions are required to reject old forms and deduct TDS. Always use Form 121.
