In a major move to simplify tax compliance, the Income Tax Department has introduced a new declaration system starting April 1, 2026. The widely used Form 15G and Form 15H have been discontinued, and a single unified Form 121 will now be used by all taxpayers to avoid Tax Deducted at Source (TDS), provided their tax liability is zero.

This change, effective from the new tax year 2026–27, is expected to streamline processes, reduce confusion, and make compliance easier—especially for senior citizens.

Form 121 is a new declaration form that allows taxpayers to inform banks or payers that their total taxable income is below the taxable limit. Once submitted, TDS will not be deducted on eligible income.

The government introduced this unified form to:

• Eliminate multiple forms
• Simplify compliance
• Reduce errors and confusion

Earlier, taxpayers had to choose between different forms based on age. Now, a single form applies to everyone, making the process more straightforward.

Previously:

• Individuals below 60 years used Form 15G
• Senior citizens (60+) used Form 15H

From April 1, 2026:

• Both forms have been replaced
• All taxpayers, regardless of age, will use Form 121

This change removes the need to remember separate eligibility rules and simplifies the filing process for millions.

You can submit Form 121 if:

• Your total tax liability is zero
• Your income is below the taxable limit

Once submitted, banks or financial institutions will not deduct TDS on your income.

Form 121 applies to multiple income sources, making it highly useful for common taxpayers. These include:

• Interest from bank deposits
• Pension income
• Provident Fund (PF) withdrawals
• Rental income
• Insurance commission
• Mutual fund earnings
• Dividend income

This wide coverage ensures that most regular income streams are included.

Every time Form 121 is submitted, a Unique Identification Number (UIN) will be generated.

• It will be a 26-character code
• Includes sequence number, tax year, and payer’s TAN

The UIN helps:

• Track each declaration
• Improve transparency
• Strengthen data management

This is part of the government’s effort to digitize and monitor tax declarations more effectively.

Banks and institutions responsible for making payments must:

• Generate a UIN for each Form 121 submission
• Maintain proper records of declarations
• Submit quarterly reports—even if no TDS is deducted

This ensures better compliance and accountability within the system.

The new rule offers several advantages:

No need to choose between multiple forms—just one form for all taxpayers.

Elderly taxpayers benefit the most, as the process becomes less complicated.

Uniform rules minimize confusion and filing mistakes.

Tracking through UIN ensures accountability and reduces misuse.

The introduction of Form 121 marks a significant step toward simplifying India’s tax system. By replacing Forms 15G and 15H with a single declaration, the government has made TDS-related compliance easier and more transparent.

If your income falls below the taxable limit, using Form 121 can help you avoid unnecessary TDS deductions while keeping your tax filings hassle-free.