From April 1, 2026, the indian income tax system is undergoing a significant update as part of the rollout of the new Income‑tax Act, 2025 and the accompanying Income‑tax Rules, 2026. One of the key changes under these reforms is that Form 121 will replace Forms 15G and 15H—the longstanding declarations used to avoid Tax Deducted at Source (TDS) on certain incomes like interest.

🧾 What Were Forms 15G and 15H?

Traditionally, taxpayers used Form 15G and Form 15H to request non‑deduction of TDS on interest income (e.g., fixed deposits) when their income was below the taxable limit:

· Form 15G — Used by individuals (and HUFs) under 60 years old whose total tax liability is nil.

· Form 15H — Used by senior citizens (60+ years) if their tax liability is zero.
These forms helped avoid TDS on interest when total income was below the basic exemption limit for the year.

🔄 Why Replace Them With Form 121?

Under the revamped tax framework, the government has abolished Forms 15G and 15H entirely and introduced a **single, unified declaration — Form 121. This reflects the broader goal of the new tax law to streamline tax compliance by reducing complexity in forms and removing age‑based differences.

Key Reasons for the Change:

· 📉 Simplification – Instead of maintaining separate forms for different age groups, one standard form applies to all eligible taxpayers.

· 🧑‍💼 Age neutral – There’s no special senior citizen form anymore; the same rule applies regardless of age.

· 📊 Reduced compliance burden – Standardizing and renumbering tax forms is part of a wider effort to simplify filings and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital processes.

📌 What Is Form 121 and Who Can Use It?

Form 121 is now the sole declaration form for taxpayers seeking to avoid TDS when their total income for the year is expected to be nil or below the taxable threshold.

Who Can File Form 121?

· All individual taxpayers whose estimated tax liability is zero for the year.

· There is no age classification — anyone can use it whether they are below or above 60 years.

This contrasts with the earlier regime where Form 15G was for under‑60 individuals and Form 15H specifically for senior citizens.

📊 What Does This Change Mean for Taxpayers?

✔️ Easier TDS Exemption

If your total income is below the taxable limit and your estimated TDS liability is zero, you can file Form 121 with the bank or payer to avoid automatic deduction of TDS on interest income or similar receipts.

✔️ No Separate Forms

There’s no need to determine whether you should fill 15G or 15H based on age — Form 121 makes it uniform.

✔️ Part of Wider Tax Reform

This change is part of the comprehensive tax overhaul under the Income‑tax Act, 2025, which also reorganizes tax forms and rules for better taxpayer experience. India Briefing

📍 Practical Impact: How and Where to File

Form 121 will typically be filed with the payer of income, such as:

· Your bank (for interest on fixed deposits, recurring deposits, savings accounts)

· Other institutions making interest payments

Just like the earlier 15G/15H declarations, make sure to submit the form before the interest is credited or payment is made so that TDS is not deducted.

📌 Example Scenario

Suppose Mr. Sharma, aged 65, has only fixed deposit interest income for the year and expects his total income to remain below the basic exemption threshold. Under the old system, he would have submitted Form 15H. But from April 1, 2026, he will submit Form 121 instead — the same form that a younger taxpayer would use.

🧠 Summary of Benefits

Feature

Old (15G/15H)

New (Form 121)

Separate forms based on age

✔️ Yes

❌ No

One common declaration

❌

✔️ Yes

Simplified filing

✖️ Moderate

✔️ Improved

Applicable for TDS exemption

✔️ Yes

✔️ Yes

📌 Final Takeaway

The replacement of Forms 15G and 15H with Form 121 from April 1, 2026 is part of India’s broader tax reform aimed at simplifying compliance, removing age‑based distinctions, and offering a unified process for taxpayers to declare nil tax liability and avoid unnecessary TDS deductions.

 

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