What Is Form 121 and How Does It Replace Form 15G and Form 15H?

If you have a fixed deposit (FD) or regularly earn interest from your savings account, there is a high chance that you have heard of and even filled Form 15G and Form 15H. These were the declarations people submitted to banks to stop unnecessary TDS deductions on their interest income. Banks made these forms accessible even on your internet banking and mobile banking platforms. interest income.

But that system has now changed. From 1st April 2026, under new Income Tax Act 2025, both Form 15G and Form 15H have been discontinued and replaced by a single common declaration called Form 121.

So if you are planning your tax declarations for FY 2026–27 and beyond, Form 121 is now the only valid form. The older Form 15G and Form 15H are no longer applicable.

Also read - Is FD Right Investment Option For You?

What Is TDS on Interest Income and Why Does It Matter?

Whenever you earn interest on a fixed deposit, recurring deposit or certain savings accounts, the bank may deduct Tax Deducted at Source (TDS) before the money reaches your account.

From FY 2026 -27,

• Banks deduct TDS at 10% if annual interest exceeds ₹50,000
• For senior citizens, the limit is ₹1,00,000
• If PAN is not submitted, the TDS rate jumps to 20%

Now, the issue arises when people whose total annual income is actually below the taxable limit still end up facing TDS deductions. The bank, by rule, cuts tax automatically even though the person may not owe any tax at all.

To recover this tax, you have to file an income tax return and wait for a refund. So, by filling Form 15G, Form 15H, and now Form 121 you tell the bank that 'My estimated tax liability for the year is nil, so please do not deduct TDS’.

What were Form 15G and 15H?

Form 15G and Form 15H were self-declaration forms used to prevent unnecessary TDS deductions on interest income. Form 15G was meant for resident individuals below 60 years, HUFs and trusts whose total income was below the basic exemption limit and whose tax liability was nil. Form 15H worked similarly but was meant for senior citizens aged 60 years and above.

Also read - How Monthly Payout FD Works For Senior Citizens

The Form 121: The New Unified Form From 1st April 2026

Form 121 is now the single unified TDS declaration form for eligible taxpayers in India. It replaces both Form 15G and Form 15H under Section 393(6) of the Income Tax Act, 2025 read with Rule 211 of the Income Tax Rules, 2026.

Why Did the Government Introduce Form 121?

The government introduced Form 121 mainly to simplify tax compliance under the new Income Tax Act. Some important changes are,

• One common form instead of separate Form 15G and 15H
• Cleaner structure with separate fields for PAN, address and income details
• ‘Tax Year’ is now used, replacing the older ‘Previous Year’
• Easier electronic filing and system integration
• Mandatory Unique Identification Number (UIN) for better tracking Overall, the new format is designed to make the process more streamlined and digital-friendly.

Who Can Submit Form 121?

Individuals Below 60, HUFs and Trusts

You can submit Form 121 if,

• Your estimated tax liability for the year is nil, and
• Your specified income does not exceed the maximum amount not chargeable to tax

For senior citizens aged 60 years or above, the rule is slightly relaxed. They can submit Form 121 as long as their estimated tax liability is nil, even if total income is relatively higher.

Who Cannot Submit Form 121?

The following are not eligible,

• Companies (both private and public limited)
• Partnership firms
• Non-residents (NRIs) (This restriction existed earlier for Form 15G and Form 15H as well).

What Incomes Are Covered Under Form 121?

Most people assume that these forms can be used only to prevent TDS on FD interest. However, in reality their scope is much wider and includes incomes from,

So if you earn any of these incomes and your tax liability is nil, you may be eligible to submit Form 121.

Structure of Form 121

Form 121 has two sections.

Part A This part is filled by the taxpayer and includes,

• Name
• PAN
• Address
• Estimated total income
• Details of income for which TDS exemption is claimed

Part B

This section is completed by the payer, such as the bank or institution. The payer verifies the declaration, allot the UIN and report the details to the Income Tax Department. This two-part structure creates accountability for both the taxpayer and the payer.

What Is the UIN?

Every Form 121 declaration receives a Unique Identification Number (UIN). This is a 26-character alphanumeric code that helps the Income Tax Department track, monitor, and verify declarations across the system.

Format of the UIN

The UIN has three components joined together:

1. Running serial number - Ten characters starting with the letter "D" followed by nine digits. For example: D000000001. This resets to 1 at the start of every financial year for each TAN.
2. Tax year - Six digits representing the tax year. For example, for Tax Year 2026-27, it is 202627.
3. TAN of the payer - Ten alphanumeric characters representing the payer's Tax Deduction Account Number. For example: MUMN12345A. Full example: For the first declaration received by a payer with TAN MUMN12345A for Tax Year 2026-27, the UIN would be: D000000001202627MUMN12345A

The UIN must be generated for every declaration, whether submitted electronically or on paper. The same sequence continues for both electronic and paper declarations. Full details of the UIN format are available in Notification No. 01/CPC(TDS)/2026 dated 28th March 2026, published on the TRACES portal at https://traces.tdscpc.gov.in.

Responsibilities of Banks and Institutions

Once Form 121 is submitted, banks and institutions must

• Verify the declaration
• Assign a UIN
• Upload declaration details to the Income Tax portal
• Report non-deduction transactions in quarterly TDS statements

The reporting deadline is the 7th of the month following each quarter. Failure to comply can attract penalties.

When and How Should You Submit Form 121?

The ideal time to submit Form 121 is at the beginning of the financial year, in April. If you open a new FD during the year, submit it immediately at the time of opening.

Important points,

• The declaration is valid only for one tax year
• A fresh form must be submitted every year
• If you have deposits with multiple banks, you must submit Form 121 separately to each bank

Modes of Submission

Online Submission Most banks including SBI, HDFC Bank and ICICI Bank allow online submission through net banking or mobile apps. Offline Submission

• Physical submission at the branch is still allowed.
• Documents Required
• PAN card
• Income details
• Investment details
• Proof of age for senior citizens
• TAN details of payer

Important Update From 1st April 2027

From April 2027 onwards, Form 121 can also be submitted electronically through depositories for,

• Securities income
• Mutual fund units
• Dividend income held in demat form This is aimed at making investor compliance fully digital.

Important Things to Remember

• Do not submit Form 121 if you are not eligible
• False declarations can lead to prosecution
• PAN is mandatory
• Without PAN, TDS may be deducted at 20%
• Submit separately to each payer
• Renew the declaration every tax year

Frequently Asked Questions

Are Form 15G and Form 15H still valid in FY 2026-27?

No. Both were discontinued on 1st April 2026. You must submit Form 121 to avoid TDS deduction from FY 2026-27 onwards.

Who is eligible to submit Form 121?

Resident individuals, HUFs, and Trusts whose total tax liability for the year is nil. Companies, firms, and NRIs are not eligible.

What happens if I do not submit Form 121?

Your bank will deduct TDS at 10%. You can claim it back while filing your ITR, but the refund process can take several months.

Can I submit one Form 121 for all my bank FDs?

No. You must submit the form separately to each bank or institution where you earn interest or other covered income.

My company has a bank FD. How do we avoid TDS?

Companies cannot use Form 121. Apply for a Lower or Nil Deduction Certificate from the Income Tax Officer using Form 13.

I am an NRI with an NRO FD. How do I reduce TDS?

Submit Form 10F and a Tax Residency Certificate to your bank to claim DTAA benefits and reduce TDS from the default 30%.

Is FD interest tax-free once I submit Form 121?

No. The interest is still taxable income. Form 121 only stops TDS deduction at source if your total tax liability is nil.