Declaration For Non-Deduction Of TDS: Form 15G And 15H Are Now Form 121

For decades, avoiding TDS on fixed deposit interest meant picking the right form based on your age. Under 60, Form 15G. Sixty or older, Form 15H. That age-based split is gone. From Tax Year 2026-27, both forms are replaced by a single, unified declaration, and every eligible taxpayer, regardless of age, now uses the exact same form.

Old forms: Form 15G (individuals below 60 and HUFs) and Form 15H (senior citizens, 60 and above), under Section 197A of the Income Tax Act, 1961

New form: Form 121, under Section 393(6) of the Income Tax Act, 2025, read with Rule 211 of the Income Tax Rules, 2026, applicable from Tax Year 2026-27 onwards

What the Declaration Does

Both the old forms and the new one serve the same core purpose: a taxpayer whose estimated total tax liability for the year is nil can declare this to a payer, typically a bank, post office, or company, so that the payer does not deduct TDS on eligible income in the first place. Without this declaration, TDS gets deducted upfront, and the taxpayer has to wait until filing the ITR to claim it back as a refund.

Eligible income types have always included interest on deposits, dividends, rent, insurance commission, and provident fund withdrawals. Form 121 continues covering all of these, and explicitly extends to income from mutual fund units and payments under life insurance policies as well, bringing a broader and more clearly listed set of income types under one declaration.

What Actually Changed

This is more than a rename. The consolidation changes how the declaration process actually works.

• Two forms become one: Form 15G and Form 15H are both discontinued. Form 121 is a single, unified declaration used by all eligible resident individuals, HUFs, and other specified entities, with no separate age-based version
• No automatic carry forward: a Form 15G or 15H filed for FY 2025-26 remains valid only for that year. It does not roll forward. Every taxpayer who wants nil TDS for FY 2026-27 onwards must submit a fresh Form 121 to each payer separately
• PAN is mandatory: without a valid PAN, the declaration is treated as invalid and TDS gets deducted, in many cases at a higher rate applicable when PAN is missing or incorrect
• UIN tracking introduced: each payer who accepts a Form 121 now generates a Unique Identification Number for that declaration and is required to report it, along with quarterly TDS filings, even in cases where no tax was actually deducted because of the declaration
• Wider income coverage: mutual fund income and life insurance policy payments are now explicitly named as covered income types, an area that was less clearly addressed under the old forms
• Renewed penalty exposure: filing Form 121 when not genuinely eligible can attract prosecution under the applicable penalty provision of the new Act, the same seriousness that applied to false declarations under the old forms, now under a renumbered penalty section

Worked Example

Old position, Forms 15G and 15H, applicable for FY 2025-26:

Mr. Verma, aged 45, has fixed deposit interest of Rs. 1,00,000 expected for FY 2025-26, along with freelance income that keeps his total estimated income below the basic exemption limit. He submits Form 15G to his bank in April 2025, since he is below 60. Separately, his mother, aged 68, has FD interest of Rs. 5,00,000 and pension income of Rs. 3,00,000, and her total tax liability works out to nil after applicable deductions and the senior citizen exemption limit. She submits Form 15H to her bank, the age-specific version meant for senior citizens.

New position, Form 121, applicable from FY 2026-27:

Both Mr. Verma and his mother need to submit fresh declarations for FY 2026-27, since their FY 2025-26 Form 15G and Form 15H submissions do not carry forward automatically. Both now use the identical Form 121, with no distinction based on age. Mr. Verma submits Form 121 to his bank declaring his estimated nil tax liability. His mother does the same, using the same form, same format, same submission process, the only difference being the income figures and her age entered as data fields rather than determining which form to use in the first place. The bank issues a UIN for each declaration and reports both, along with quarterly TDS filings, even though no TDS is actually being deducted.

Why This Matters for Filing

• Advise every client who filed 15G or 15H for FY 2025-26 to submit fresh Form 121 declarations for FY 2026-27, ideally in April, before the first interest credit date of the year, since the old declarations expire and do not carry forward.
• Each payer needs a separate submission. A client with fixed deposits across three banks needs to file Form 121 with each bank individually, exactly as was required under the old forms, and this has not changed with consolidation.
• Double check PAN accuracy before submission, since an incorrect PAN invalidates the declaration entirely and can trigger TDS at the higher rate applicable for missing or incorrect PAN, defeating the entire purpose of filing the declaration.
• Submitting Form 121 does not exempt income from tax. It only prevents upfront deduction. Clients still need to include this income in their ITR and pay tax on it if their actual income during the year turns out to exceed the nil-liability estimate they declared.

Bottom Line

Forms 15G and 15H have been retired and replaced by a single unified Form 121, removing the age-based distinction that existed for decades. The underlying purpose has not changed, a taxpayer with nil expected tax liability can still prevent TDS from being deducted at source. What has changed is that everyone now uses one form, old declarations do not carry forward into the new tax year, and PAN accuracy and per-payer submission discipline matter more than ever under the new UIN-based tracking system.