Form 121 FY 2026-27: New Form Replacing 15G & 15H, Eligibility & TDS Rules

If you are searching for Form 15G or Form 15H for FY 2026-27, there is an important change you should know.

From 1 April 2026, the Income-tax Act, 2025 and Income-tax Rules, 2026 have introduced a single Form 121 in place of the earlier Forms 15G and 15H.

Form 121 is used by eligible taxpayers to declare that their estimated tax liability for the relevant Tax Year will be nil and request the payer not to deduct TDS on specified incomes.

What is Form 121?

Form 121 is the new declaration for non-deduction of TDS on specified incomes from Tax Year 2026-27.

It is prescribed under Rule 211 of the Income-tax Rules, 2026 and operates under Section 393(6) and 393(7) of the Income-tax Act, 2025, corresponding broadly to the earlier Section 197A framework.

The purpose is simple: where an eligible taxpayer expects nil tax liability, unnecessary TDS can be avoided instead of paying tax through TDS and subsequently claiming a refund.

Is Form 15G or 15H applicable for FY 2026-27?

No.

For a tax year beginning on or after 1 April 2026, the declaration is required to be furnished in Form 121.

Therefore:

Earlier system	From FY 2026-27
Form 15G	Form 121
Form 15H	Form 121
Section 197A	Section 393(6)/(7)
Rule 29C	Rule 211

The major change is that the separate age-based Forms 15G and 15H have been merged into one form.

Who can file Form 121?

Eligibility depends on the taxpayer’s age and estimated tax liability.

Individuals below 60 years and other eligible persons

Form 121 can generally be furnished where:

1. Tax liability on estimated total income for the Tax Year is nil, and
2. The aggregate specified income covered by the declaration does not exceed the maximum amount not chargeable to tax.

The form can also be furnished by certain other eligible persons, subject to the conditions prescribed under Section 393(6).

Senior citizens

For a resident individual aged 60 years or more, the second income-limit condition does not apply in the same manner.

The key requirement is that the tax on estimated total income must be nil.

This means senior citizens should carefully calculate their estimated total income before submitting Form 121.

Which incomes are covered by Form 121?

Form 121 is not a general certificate for avoiding TDS on every type of income.

The prescribed form covers specified categories, including:

• Interest on bank, co-operative bank and specified post-office deposits
• Interest on securities
• Rent from specified persons
• Insurance commission
• Certain payments from recognised provident funds
• Income from specified mutual fund/unit holdings
• Life insurance policy payments, including bonus
• Dividend from a domestic company
• Certain other specified interest payments

Therefore, simply having nil tax liability does not automatically mean Form 121 can be used for every receipt.

When should Form 121 be submitted?

Ideally, Form 121 should be submitted before the income is credited or paid.

The Income Tax Department recommends submitting it preferably at the beginning of the Tax Year so that the payer can consider the declaration before deducting TDS.

If TDS has already been deducted, filing Form 121 later may not automatically reverse that deduction. The taxpayer may instead have to claim the excess TDS through the income-tax return, subject to the applicable rules.

How is Form 121 filed?

Form 121 has two broad parts.

Part A – Taxpayer’s declaration

The taxpayer provides details such as:

• Name and PAN
• Address and residential status
• Age/status
• Tax Year
• Nature of income
• Estimated income covered by the declaration
• Estimated total income
• Details of earlier Form 121 declarations, where applicable
• Relevant ITR details

Part B – Verification by the payer

The payer records and verifies the declaration and completes the required reporting details.

The declaration can be submitted in electronic or physical form, depending on the facility provided by the payer.

What is the UIN in Form 121?

One of the important compliance changes is the introduction of a Unique Identification Number (UIN).

The payer is required to allot a UIN to Form 121 declarations and report the relevant information as prescribed.

For Tax Year 2026-27, the prescribed UIN structure contains the declaration’s running serial number, Tax Year and the payer’s TAN.

This creates a clearer audit trail and allows declarations to be tracked and reported through the TDS system.

Important: Form 121 is not a way to avoid tax

Form 121 does not provide a tax exemption.

It is a declaration that the taxpayer expects their tax liability to be nil and therefore requests non-deduction of TDS on eligible income.

If the declaration is incorrect or false, the taxpayer may face consequences under the Income-tax Act, including prosecution provisions applicable to false statements.

Therefore, taxpayers should calculate their estimated total income carefully before submitting the form.

Form 121 vs Form 15G and 15H: What has changed?

The biggest change is consolidation.

Earlier, taxpayers had to decide whether Form 15G or Form 15H applied. From Tax Year 2026-27, both have been replaced by Form 121.

The new framework also uses the terminology of “Tax Year”, aligns the form with the Income-tax Act, 2025 and provides a more structured system for digital reporting.

Bottom Line

For FY/Tax Year 2026-27, taxpayers should not look for the old Form 15G or Form 15H as the applicable declaration. The relevant form is Form 121.

However, eligibility remains important. A taxpayer should submit Form 121 only after checking the applicable conditions, estimated total income and the nature of income for which TDS non-deduction is being claimed.

The change is therefore more than a simple renumbering: Forms 15G and 15H have been consolidated into Form 121 under the new Income-tax framework.

This article is for general information and educational purposes only and should not be treated as tax or legal advice. Taxpayers should verify the applicable provisions and latest notifications before taking any compliance decision.

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