Form 121 (formerly Form 15G / 15H)
The single declaration that lets you receive interest without TDS. From 1 April 2026 Form 121 replaced Form 15G (under-60s) and Form 15H (senior citizens).
Definition
Form 121 is the self-declaration you submit to a bank, post office or other payer asking them not to deduct TDS on your interest income because your tax liability for the year is nil. It replaced the separate Forms 15G and 15H on 1 April 2026, under Section 393(6) of the Income-tax Act, 2025 and Rule 211 of the Income-tax Rules, 2026. Banks deduct TDS on interest only above ₹50,000 for general depositors and ₹1,00,000 for senior citizens, so the form matters when your interest crosses those thresholds but you still owe no tax.
One form now covers every age, but the age-based conditions behind it still apply. A resident under 60 (or a HUF) must satisfy two conditions — final tax liability nil, AND total income below the basic exemption limit. A resident senior citizen (60+) has only one condition: final tax on total income is nil. Because of the Section 87A rebate, a senior citizen with nil tax after rebate can still file validly even though income exceeds the exemption limit — flexibility the under-60 test does not offer. Form 121 covers specified payments including interest, dividends, rent, insurance commission and mutual fund income.
Submit the form at the start of the tax year (April) to each bank/branch paying you interest — most banks accept it online through net banking; it is valid for one year and must be filed afresh every year. The payer allots a unique identification number to every declaration and reports it quarterly, so the declaration is now tracked end to end. Pitfalls: a false declaration attracts prosecution; a form submitted mid-year cannot undo TDS already deducted (you then claim it as a refund in your ITR); and non-residents cannot use it. For tax year 2025-26 and earlier the old Forms 15G and 15H still apply.
Example
Retired at 63 with only pension and FD interest and nil tax after rebate, Lakshmi submitted Form 121 to her bank in April 2026 to stop TDS on her deposits — the same declaration she filed as Form 15H a year earlier.
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Sources
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