Form No. 121: The New 15G & 15H — What Your Bank's SMS Is Really Telling You
If your bank has been sending you reminders to submit Form 15G or Form 15H — you need to read this carefully. The rules have changed. Under the new Income Tax Act, 2025, Forms 15G and 15H have been merged into a single new form called Form No. 121, effective from the Tax Year 2026-27.
Your bank's reminder is valid and time-sensitive. Here is everything you need to know about Form 121, who must file it, and how to do it correctly.
What Is Form No. 121?
Form No. 121 is a self-declaration form that allows eligible individuals to receive certain incomes — like bank fixed deposit interest, post office deposit interest, and other specified incomes — without any TDS (Tax Deducted at Source) being deducted.
It replaces both the old Form 15G and Form 15H under the new Income Tax Act, 2025, governed by Section 393(6) and Rule 211 of the Income Tax Rules, 2026.
| Detail | Old Law (IT Act, 1961) | New Law (IT Act, 2025) |
|---|---|---|
| Form Name | 15G and 15H (two separate forms) | Form No. 121 (single unified form) |
| Section | 197A(1), 197A(1A), 197A(1C) | Section 393(6) |
| Rule | Rule 29C of IT Rules, 1962 | Rule 211 of IT Rules, 2026 |
| Purpose | Prevent TDS on interest income | Same — prevent TDS on specified incomes |
Why Are Banks Sending Reminders?
Banks are legally required to deduct TDS on interest income if they do not receive a valid declaration from you. If you earned FD interest and your total income is below the taxable limit, submitting Form 121 ensures no TDS is cut from your interest — saving you the hassle of filing for a refund later.
Around 90 lakh declarations for the old Form 15G and 1 crore declarations for Form 15H used to be submitted every year. Banks take this very seriously. If you ignore the reminder, TDS will be deducted automatically.
⚠️ Important: Submitting Form 121 does NOT make your income tax-free. It only prevents TDS from being deducted at source, provided you meet the eligibility conditions.
Who Should File Form No. 121?
The following persons are eligible to file Form 121:
- ✅ Resident individuals below 60 years — with no tax liability for the year AND total interest income below the basic exemption limit
- ✅ Resident senior citizens aged 60 years and above — with estimated total income below the taxable limit after deductions
- ✅ Hindu Undivided Families (HUFs)
- ✅ Other specified eligible entities like certain trusts
Who CANNOT file Form 121:
- ❌ Companies
- ❌ Partnership Firms or LLPs
- ❌ Non-Resident Indians (NRIs)
What Has Changed from 15G / 15H to Form 121?
1. Single Unified Form
The biggest change — Forms 15G and 15H have been merged into one form. Whether you are below 60 or above 60, you now submit the same Form 121. The form intelligently adapts based on your age and status.
2. Smarter, Digital-First Design
Form 121 is designed as a smart digital form with:
- Auto-population of your details from your income tax profile
- Real-time validations and error alerts
- Drop-down menus and date pickers
- Integration with government APIs and databases
- Checkbox-based smart verification
- Standardised name and address fields
3. Language and Terminology Updates
- "Assessment Year" and "Financial Year" replaced with "Tax Year"
- "Rs." replaced with "₹"
- All sections updated to align with Income Tax Act, 2025
- Redundant columns removed; cleaner layout with explanatory notes
Structure of Form No. 121
Part A — Filled by the Declarant (You)
- Name, Address, PAN, Status, Residential Status
- Date of Birth, Email ID, Contact Number
- Tax Year for which declaration is made
- Nature and estimated amount of income
- Whether other Form 121s were filed during the year
- Aggregate income across all declarations
- Estimated total income for the tax year
- Details of ITR filed for the previous two tax years
- Signed declaration
Part B — Filled by the Bank / Payer
- Name, Address, TAN, PAN of the paying institution
- Details of each declarant — name, PAN, UIN, income details
- Date on which the declaration was received
- Declaration by the bank/institution
Documents You Need to File Form 121
- PAN card (mandatory)
- Proof of age (for senior citizens)
- Details of income / FD investment for which no TDS is sought
- Bank account details for interest-bearing instruments
- TAN of the bank or paying institution
Step-by-Step: How to File Form 121
Step 1 — Check Your Eligibility
Your estimated tax liability for the tax year must be NIL. This means your total income — including all interest income — after applicable deductions should result in zero tax. A valid PAN is mandatory.
Step 2 — Get the Form
Download Form 121 from the Income Tax Department's official website or your bank's website. Many banks now offer online submission via internet banking or mobile banking apps.
Step 3 — Fill in the Declaration
Provide your name, PAN, residential status, tax year, estimated total income, and details of the income for which you are filing the declaration. Be accurate — false declarations attract prosecution under the Income Tax Act.
Step 4 — Submit to Your Bank / Payer
Submit the form before the income is credited or paid — ideally at the start of the tax year. Submission can be physical or online depending on your bank's facility. The form is valid only for that specific tax year — you must resubmit every year.
⚠️ Do not wait until TDS is already deducted. Once deducted, you will have to file an ITR and wait for a refund — which can take months.
What Happens After You Submit?
For You (the Declarant)
- No TDS is deducted on your eligible interest or specified income
- Your submission is reflected in Form 168 / AIS — confirming linkage with your PAN
- Reduces refund claims and simplifies your ITR filing
For the Bank / Institution
- The bank assigns a Unique Identification Number (UIN) to each Form 121 received
- The bank uploads a monthly consolidated statement of all Forms 121 to the Income Tax Department via TAN login on the e-filing portal
- The UIN is quoted in the quarterly TDS return (Form No. 140) for reconciliation
- Non-compliance by the bank attracts penalties
Key Deadlines
| Action | Who | Due Date |
|---|---|---|
| Submit Form 121 | Declarant (you) | Before income is credited — ideally start of Tax Year |
| Monthly statement of declarations received | Bank / Payer | On or before 7th of the following month |
| Quote UIN in TDS return | Bank / Payer | Along with Form No. 140 (Quarterly TDS Return) |
Common Mistakes to Avoid
- ❌ Submitting after TDS is deducted — the form must be submitted before payment or credit
- ❌ Filing when you are not eligible — if your tax liability is not NIL, submitting Form 121 is a false declaration and attracts penalties
- ❌ Not resubmitting every year — Form 121 is valid only for one tax year
- ❌ Wrong PAN — PAN is mandatory and must be accurate
- ❌ NRIs filing this form — NRIs are not eligible. NRIs must submit Form 10F and rely on DTAA benefits instead
- ❌ Ignoring bank reminders — if you don't respond, TDS will be deducted automatically and you'll have to file for a refund
Quick Summary: Form 121 at a Glance
| Question | Answer |
|---|---|
| What is Form 121? | Replaces old Forms 15G and 15H under IT Act 2025 |
| Who files it? | Resident individuals, HUFs with NIL tax liability |
| Who cannot file? | Companies, Firms, NRIs |
| What does it prevent? | TDS deduction on FD interest and specified incomes |
| How long is it valid? | One tax year only — must resubmit annually |
| Where to submit? | Your bank, financial institution, or employer |
| When to submit? | Before income is credited — start of the tax year |
| PAN mandatory? | Yes — absolutely mandatory |
Got a Bank Reminder? Here's What to Do Right Now
- Check if your estimated total income for Tax Year 2026-27 is below the taxable limit
- If yes — download Form 121 from your bank's app or the Income Tax portal
- Fill in your PAN, income details, and tax year
- Submit it to your bank before your next FD interest credit date
- Keep a copy of the acknowledgement for your records
If you are unsure whether you are eligible, or if your income situation is complex — don't guess. A wrong declaration is a false statement under the Income Tax Act and can attract serious penalties.
Need Help? EFileTax Is Here
At EFileTax, we help individuals, senior citizens, HUFs, and businesses across Chennai, Bangalore, Hyderabad and Guntur with:
- Form 121 eligibility assessment
- ITR filing for all categories
- TDS refund claims
- Tax planning for FDs, investments, and retirement income
Don't let a missed form cost you money. Contact efiletax today and let our experts handle it for you.