Form 121 income tax declaration is the single form that replaced Forms 15G and 15H from 1 April 2026: a resident whose tax for the year will be nil gives it to the bank or other payer, and the payer then does not deduct TDS on interest, dividends and similar income. Form no 121 of income tax law is prescribed by rule 211 of the Income-tax Rules, 2026, read with section 393(6) of the 2025 Act.
For FY 2025-26, declarations already given in Form 15G (below 60) or Form 15H (60 and above) stay valid for that year's income. For tax year 2026-27 onward, Form 121 is the one to use, whatever your age. It only stops the deduction; the income is still taxable and must go in your return. The basics of deduction are on our what is TDS page.
Quick facts
Replaces
Form 15G and Form 15HFrom
Tax year 2026-27 (1 April 2026)Law
Section 393(6), Income-tax Act, 2025; rule 211, Income-tax Rules, 2026Who can file
Resident individuals and HUFs with nil tax for the yearWho cannot
Companies, firms, non-residentsPAN
Must be quoted, or the form is invalidValidity
One tax year, given to each payer separately
What is Form 121 in income tax, and what changed
| Point | FY 2025-26 (1961 Act) | Tax year 2026-27 (2025 Act) |
|---|---|---|
| Form | 15G below 60, 15H for 60 and above | Form 121 for everyone eligible |
| Legal basis | Section 197A and rule 29C | Section 393(6) and rule 211 |
| Effect | Payer does not deduct TDS | Same |
| Payer reporting | Declarations reported by the payer | Payer allots a unique number and quotes it in the TDS statement (Form 140) |
Banks and other payers have built Form 121 into their deposit forms and net banking. Paper copies remain fine where the payer accepts them.
Who can file Form 121 for TDS
| Declarant | Condition |
|---|---|
| Resident individual below 60, or HUF | Tax on estimated total income for the year is nil, and the total of the incomes covered by such declarations stays within the basic exemption limit |
| Resident individual aged 60 or more | Tax on estimated total income for the year is nil after rebate |
| Company, firm or non-resident | Cannot use the form |
The basic exemption limit is ₹4 lakh in the new regime and ₹2.5 lakh in the old regime for those below 60. The rebate matters a lot here: with the rebate under 87A, now section 156, a resident's tax can be nil up to ₹12 lakh of income in the new regime, but a person below 60 still fails the second test once the covered income passes the exemption limit.
Examples: when the declaration works and when it does not
A retired teacher, age 66. Pension ₹3,00,000 and deposit interest ₹2,40,000 a year, no other income, new regime.
Taxable income: ₹5,40,000 minus the ₹75,000 standard deduction on pension = ₹4,65,000.
Tax: 5% on ₹65,000 above ₹4 lakh = ₹3,250. The rebate wipes it out, so tax is nil.
She can give the declaration (Form 15H for FY 2025-26, Form 121 from tax year 2026-27). Without it the bank would deduct 10% on ₹2,40,000, which is ₹24,000, because interest is above the ₹1 lakh senior citizen limit.
A 45-year-old with only deposit interest. Interest ₹4,50,000, nothing else, new regime.
Tax works out to ₹2,500 before rebate and nil after it.
But the covered income of ₹4,50,000 is above the ₹4 lakh exemption limit, so the declaration is not valid. The bank deducts ₹45,000, and he claims it back as a refund in his return.
How to fill Form 121 income tax online or on paper
- Get the form from your bank's net banking or branch, or from the Forms section of incometaxindia.gov.in.
- Fill your name, PAN, status, residential status, address and contact details.
- State the tax year, whether you were assessed to tax earlier and for which year.
- Enter the estimated income covered by this declaration and your estimated total income for the year.
- List other Form 121 declarations given in the year and the income they cover.
- Sign or verify online, and keep the acknowledgement with the unique number the payer allots.
Submit it early, before the first interest credit of the tax year. A declaration given after TDS has been deducted does not bring that tax back; you then claim it through a TDS refund in the return.
Incomes the declaration can cover
- Interest on bank and post office deposits, and other interest
- Dividends
- Withdrawals from the provident fund where TDS would apply
- Rent where the payer must deduct
- Insurance commission and payments under a life insurance policy
- Income from mutual fund units
Give a separate declaration to each bank or payer. One form filed with one bank does not stop TDS at another.
Mistakes with Form 121 and how to avoid them
| Mistake | Better way |
|---|---|
| Filing when income is above the limits | Work out the tax first; a declaration you are not entitled to is a false statement and an offence |
| Leaving out PAN | Quote PAN; without it the payer must deduct at 20% |
| Assuming the income becomes tax free | Show all interest in your return; the declaration only stops TDS |
| Giving it once and forgetting | Give a fresh declaration every tax year |
| Non-resident filing it | Non-residents cannot use the form; check lower deduction options instead |
This is a general explanation of the Form 121 declaration, not tax advice for you. Rules and form layouts are revised from time to time; confirm with your bank, the department's site or a chartered accountant.
Sources we checked
- Income-tax Act, 2025, section 393(6)
- Income-tax Rules, 2026, rule 211
- Income-tax Act, 1961, section 197A
- Income Tax Department, Form 121 FAQs
Frequently asked questions
What is Form 121 in income tax?
It is a self-declaration that your tax for the year will be nil, so the payer should not deduct TDS. It replaced Forms 15G and 15H from tax year 2026-27.
Where can I get the form 121 income tax PDF download?
The form is in the Forms section of incometaxindia.gov.in, and most banks offer it inside net banking or at the branch. Use the version your payer accepts.
Is Form 15G still valid?
For FY 2025-26 income, a Form 15G or 15H given for that year stays valid. For tax year 2026-27 onward, the declaration is Form 121.
Can a senior citizen use Form 121 instead of Form 15H?
Yes. Form 121 is one form for all ages. A resident aged 60 or more can file it if tax on the year's total income is nil.
Can an NRI file Form 121?
No. The declaration is only for residents. A non-resident who expects lower tax must look at a lower or nil deduction certificate instead.