If you have ever submitted Form 15G or Form 15H to your bank to avoid TDS on fixed deposit interest, here is the most important change you need to know: both forms have been discontinued. From 1 April 2026, the new Income Tax Act, 2025 replaces them with a single, unified form - Form 121. Whether you are 25 or 75, there is now just one form for everyone.
This guide covers what Form 121 is, who can file it, how to submit, the new UIN tracking system, which income types are covered, and what happens to your existing 15G/15H submissions.
Old vs New: Form 15G/15H vs Form 121
| Parameter | Old System (Until March 2026) | New System (From April 2026) |
|---|---|---|
| Forms | Form 15G (below 60 years) + Form 15H (60 years and above) | Single Form 121 for all ages |
| Governing section | Section 197A of ITA 1961 | Section 393(6) of ITA 2025 |
| Rules | Rule 29C of IT Rules 1962 | Rule 211 of IT Rules 2026 |
| Age-based selection | Yes - had to choose correct form based on age | No - one form regardless of age |
| Eligibility condition (15G) | Tax on estimated total income must be nil + income below basic exemption limit | Tax on estimated total income must be nil (no separate income limit condition) |
| Eligibility condition (15H) | Tax on estimated total income must be nil (no income limit for seniors) | Same as above - unified condition for all |
| Tracking | No UIN. Manual tracking by banks. | 26-character UIN assigned to each declaration. Digital tracking. |
| Payer reporting | Quarterly TDS return | Monthly upload of consolidated statement + quarterly TDS return (Form 140) with UIN |
| Applicable for | FY 2025-26 and earlier | Tax Year 2026-27 onwards |
For individuals managing income tax return filing, Form 121 submission timing directly affects TDS credit in AIS/Form 168.
Who Can File Form 121?
| Eligible | Not Eligible |
|---|---|
| Resident individuals (below 60 years) - previously Form 15G users | Non-resident individuals (NRIs) |
| Resident senior citizens (60 years and above) - previously Form 15H users | Companies |
| Hindu Undivided Families (HUFs) | Partnership firms |
| Trusts (where applicable) | Persons with tax liability above nil |
| Any person whose estimated tax on total income for the tax year is NIL | Persons who have not provided PAN |
Key eligibility test: Your estimated tax on total income for the tax year must be nil (zero). This means:
- Under new regime: taxable income up to Rs 12 lakh attracts nil tax (Rs 60,000 rebate under Section 156). Salaried individuals up to Rs 12.75 lakh (after Rs 75,000 standard deduction).
- Under old regime: basic exemption limit Rs 2.5 lakh (below 60), Rs 3 lakh (senior), Rs 5 lakh (super senior). Plus deductions under 80C, 80D, etc. may bring tax to nil.
- If your total income results in nil tax after rebate/deductions - you can file Form 121. If any tax is payable - you cannot.
Professional tax planning services can verify your nil tax eligibility before you submit Form 121 to avoid incorrect declarations.
What Income Types Does Form 121 Cover?
| Income Type | TDS Section (New Act) | Form 121 Applicable? |
|---|---|---|
| Bank FD interest | 393 (corresponding to old 194A) | Yes |
| Post office deposit interest | 393 | Yes |
| Corporate bond/debenture interest | 393 | Yes |
| Dividend from shares/MF | 393 (corresponding to old 194) | Yes |
| Mutual fund IDCW (Income Distribution) | 393 | Yes |
| Insurance commission | 393 | Yes |
| Rent payment (Section 194-I equivalent) | 393 | Yes |
| EPF premature withdrawal (old 192A) | 393 | Yes |
| NSC/NSS interest | 393 | Yes |
| Salary | 392 (separate section) | No - salary TDS governed by Form 130 (old Form 16) |
| Professional fees/contract payments | 393 | No - business payments require lower/nil TDS certificate (Form 122) |
For salaried individuals, Form 121 does not replace employer TDS. Salary TDS is managed through Form 130 (old Form 16). Refer to ITR filing for salary for salary-specific TDS guidance.
How to Submit Form 121: Step-by-Step
- Step 1: Verify eligibility - calculate your estimated total income for Tax Year 2026-27. Confirm that tax liability is nil under your chosen regime.
- Step 2: Download Form 121 from your bank's website, the Income Tax e-filing portal, or use the bank's online submission facility.
- Step 3: Fill the form - Name, PAN, status (Individual/HUF), Tax Year (2026-27), residential status, estimated total income, details of income for which declaration is filed.
- Step 4: Submit to each payer separately - if you have FDs in 3 banks, submit Form 121 to all 3. One form per payer.
- Step 5: Receive UIN - the payer assigns a 26-character Unique Identification Number to your declaration. Keep this for your records.
- Step 6: Payer uploads your declaration monthly to the e-filing portal (via TAN login) and quotes UIN in quarterly TDS return (Form 140).
- Step 7: Verify in AIS/Form 168 - check that your income appears with nil TDS. If TDS is still deducted despite Form 121, follow up with the payer.
The New UIN Tracking System
Every Form 121 submission is assigned a 26-character Unique Identification Number (UIN) by the payer. This is a significant upgrade from the old system where 15G/15H submissions had no standardised tracking.
| UIN Component | Description |
|---|---|
| First character | D (for Declaration) |
| Next 9 digits | Sequence number assigned by the payer |
| Tax Year | 4-digit tax year identifier |
| TAN of payer | 10-character TAN of the bank/institution |
| Purpose | End-to-end digital tracking, audit trail, verification |
Payer obligations: (1) Assign UIN to each Form 121 received. (2) Upload consolidated monthly statement of all Form 121 declarations via e-filing portal. (3) Quote UIN in quarterly TDS return Form 140. (4) Even if no TDS is deducted, the declaration must be reported. Ensure TDS return filing by deductors correctly includes UIN references for all Form 121 declarants.
Transition: What Happens to Existing 15G/15H?
- Form 15G/15H submitted for FY 2025-26 (AY 2026-27) remain valid for that year. Banks will honour them until 31 March 2026.
- From 1 April 2026 (Tax Year 2026-27 onwards), Form 15G and 15H are discontinued. Only Form 121 is accepted.
- If you submitted 15G/15H to your bank in April 2025 for FY 2025-26, it remains valid. You do NOT need to resubmit as Form 121 for that year.
- For Tax Year 2026-27, submit Form 121 fresh - ideally in April 2026 before the first interest credit date.
- If your bank has not updated its systems yet, ask them to accept Form 121 manually or download from the IT portal.
Worked Examples
Example 1: Young Professional (Previously 15G)
Mr. Sharma, 28 years old. Freelance income Rs 2,50,000. FD interest Rs 1,00,000. Total estimated income Rs 3,50,000. Under new regime: tax on Rs 3,50,000 = nil (below Rs 4 lakh basic exemption + Rs 12 lakh rebate threshold).
Action: Submit Form 121 to bank. Bank will not deduct TDS on Rs 1,00,000 FD interest. Previously would have filed Form 15G.
Example 2: Senior Citizen (Previously 15H)
Mrs. Gupta, 68 years old. Pension Rs 3,00,000. FD interest Rs 5,00,000. Total estimated income Rs 8,00,000. Under new regime: tax on Rs 8,00,000 = nil (Rs 60,000 rebate under Section 156 covers entire tax on income up to Rs 12 lakh).
Action: Submit Form 121 to bank AND pension disbursing authority. No TDS on FD interest or pension. Previously would have filed Form 15H.
Example 3: Income Above Nil Tax - Cannot File
Mr. Verma, 45 years old. Salary Rs 15 lakh. FD interest Rs 80,000. Under new regime: tax on Rs 15,80,000 = Rs 1,82,000 (approximately). Tax is NOT nil.
Action: Cannot file Form 121. TDS will be deducted on FD interest at 10%. Claim TDS credit in ITR. For capital gains from investments, refer to ITR for capital gains.
Example 4: Multiple Banks - Separate Submissions
Mrs. Patel, 72 years old. FD in SBI (interest Rs 3 lakh) + FD in HDFC (interest Rs 2 lakh) + Post office RD (interest Rs 50,000). Total income Rs 5,50,000. Tax = nil under new regime.
Action: Submit Form 121 to SBI, HDFC, AND post office - three separate submissions. Each payer assigns its own UIN. All three report to IT portal independently.
Common Mistakes to Avoid
Mistake 1: Submitting Form 121 when tax liability is not nil. If your total income results in any tax payable (even Rs 100), you cannot file Form 121. Incorrect declaration can result in short deduction of TDS, interest under Section 201, and potential penalty.
Mistake 2: Not submitting to each payer. Form 121 must be submitted to every bank/institution that pays you income. If you have FDs in 3 banks, you need 3 separate Form 121 submissions. One form does NOT cover all payers.
Mistake 3: Not providing PAN. PAN is mandatory on Form 121. Without PAN, the declaration is treated as invalid and TDS will be deducted at the higher rate (20% instead of 10% for interest).
Mistake 4: Confusing Form 121 with nil TDS certificate. Form 121 is a self-declaration for persons with nil tax liability. For businesses wanting lower/nil TDS on professional/contract payments, they need Form 122 (lower TDS certificate from AO) - not Form 121.
Mistake 5: Not withdrawing if income changes. If your income increases mid-year and tax becomes payable, you must withdraw the Form 121 declaration and inform the payer. Failing to do so results in underpayment of TDS and interest liability at the time of ITR filing.
Key Takeaways
Form 121 replaces both Form 15G and Form 15H from 1 April 2026 (Tax Year 2026-27). Single unified form for all ages - no age-based selection needed. Governed by Section 393(6) of ITA 2025 and Rule 211.
Eligibility: estimated tax on total income must be nil. Under new regime, income up to Rs 12 lakh attracts nil tax (Rs 60,000 rebate). Under old regime, basic exemption + deductions must bring tax to nil.
Submit to each payer separately. Each payer assigns a 26-character UIN for digital tracking. Payers must upload monthly declarations and quote UIN in quarterly TDS return Form 140.
Covers FD interest, post office deposits, bonds, dividends, MF IDCW, rent, insurance commission, EPF withdrawal. Does NOT cover salary TDS (Form 130) or business payments (Form 122).
If income changes mid-year and tax becomes payable, withdraw the declaration immediately. Incorrect Form 121 can result in short TDS deduction, interest under Section 201, and penalty.
Need Help with Income Tax Return Filing?
Transitioning from Form 15G/15H to Form 121 requires verifying nil tax eligibility, submitting to all payers, and ensuring UIN is correctly reflected in AIS/Form 168.
Explore our income tax return filing and TDS return filing services for complete TDS compliance support.
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