Income-tax returns: New Form 121 replaces 15G, 15H — Eligibility, download link and TDS rules explained
Summary: A quiet but powerful change has arrived for millions of Indians who struggle with unnecessary TDS cuts despite earning below the taxable limit. The government has now replaced Forms 15G and 15H with a unified Form 121, promising a simpler, cleaner and more transparent process. This detailed guide explains who can use it, how to download it, how to submit it, and how to avoid unwanted TDS deductions this year.
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| Income-tax returns New Form 121 replaces 15G, 15H |
A common problem that needed a fix
Picture this.
Meera, a 62-year-old retired teacher, keeps her savings in fixed deposits. Her total income is well below the tax slab. Yet her bank cuts TDS every quarter. She rushes to the branch, fills old forms, argues with the officer, and still waits months for a refund.
This is the story of crores of Indians.
To end this confusion, the government has now introduced Form 121, replacing Form 15G and Form 15H for FY 2024-25 and onward. The move brings one simple promise — no more complex paperwork if your income is below the taxable limit.
The change matters because taxpayers lose over ₹3,000 crore every year in avoidable TDS, according to industry estimates. Many never file returns, so the money remains stuck.
What exactly is Form 121?
Form 121 is a self-declaration submitted to banks, post offices, mutual fund houses, and other financial institutions.
Its purpose is simple:
To inform them NOT to deduct TDS if your taxable income is below the basic exemption limit.
It replaces:
- Form 15G (for individuals below 60)
- Form 15H (for senior citizens above 60)
The new form is issued by the Income Tax Department under the updated TDS/TCS administration process.
Who is eligible to submit Form 121?
You can submit Form 121 only if all conditions below are met:
✔ Your total taxable income is below the tax exemption limit
- Under new regime: ₹3 lakh
- Under old regime: ₹2.5 lakh
✔ You are a resident individual in India
✔ Your tax liability is NIL for the financial year
✔ You earn income where TDS is normally deducted
Examples:
- Bank fixed deposits
- Post office deposits
- Interest on bonds
- Dividends
- PF withdrawals (if applicable)
- Corporate deposits
- Mutual fund payouts
✔ You do NOT have a large capital gain or business income
Such incomes may disqualify you.
Senior citizens receive special benefit:
Even if their interest income crosses ₹50,000, they can file Form 121 if their total income still remains below the taxable limit.
Read Also: May 2026 Tax Deadlines: Key Dates Every Taxpayer Must Track
Where to download Form 121?
You can download Form 121 (PDF) from:
- Income Tax Department’s official website
- Bank websites under the TDS/Forms section
- Post Office portal
- Your net banking dashboard
- Branch counter on request
As of now, the form is available under the TDS section for FY 2024-25.
How to submit Form 121 and avoid TDS cuts
Submitting Form 121 is easy and can be done online or offline:
1. Online method (preferred)
Most banks allow submission via net banking:
- Log in
- Go to TDS / Form 121
- Pre-filled details appear
- Confirm and submit
- Download acknowledgement
2. Offline method
Submit a signed copy at your bank/post office branch with:
- PAN
- Aadhaar
- Account details
- Estimated income calculation
Always take a stamped acknowledgement.
3. One submission per financial year
You must submit this form every year, usually in April.
4. Submit Form 121 for every institution
If you have 3 fixed deposits in different banks, you must submit it in all three.
Why this change matters for taxpayers
The biggest pain point earlier was the difference between Forms 15G & 15H, which confused crores of people.
Now, the government wants a unified structure that is:
- Simple to understand
- Easy to verify
- Less prone to misuse
- Faster to process
- Quick to match with PAN-based TDS systems
Experts say this change will reduce paperwork by almost 40% and help prevent crores in unnecessary TDS cuts.
Expert Insight:
“Form 121 brings long-pending clarity to India’s TDS system. One form means fewer errors and faster processing,” says CA Raghav Sinha, Tax Consultant with 15+ years’ experience.
Key differences: Old Forms vs New Form 121
| Feature | Form 15G | Form 15H | New Form 121 |
|---|---|---|---|
| Eligible age | Below 60 | 60+ | All ages |
| Purpose | Avoid TDS | Avoid TDS | Avoid TDS uniformly |
| Complexity | Two forms | Two different forms | One simple form |
| Income limit | Below exemption | Below exemption | Below exemption |
| Submission | Annual | Annual | Annual |
| PAN mandatory | Yes | Yes | Yes |
| Senior citizen benefit | No | Yes | Included within single form |
Common mistakes that trigger unwanted TDS
Most taxpayers lose money because of these avoidable errors:
❌ Declaring wrong income estimates
Banks verify them later. Mismatch = TDS.
❌ Not linking PAN with account
PAN mismatch almost always leads to 20% TDS.
❌ Forgetting to submit Form 121 every year
Forms expire every 31 March.
❌ Submitting only to one bank
TDS cuts continue from other accounts.
❌ Not checking old fixed deposits
Many old FDs still use outdated form records.
What you should do now
Follow these steps to avoid TDS deductions this year:
- Calculate your estimated income for FY 2024-25
- Confirm it is below the taxable limit
- Download Form 121
- Submit it to all banks and financial institutions
- Take acknowledgment copies
- Check your Form 26AS after 15 days
- Ensure no TDS entries appear
- Report discrepancies immediately
Your goal is simple:
Zero TDS if your tax liability is zero.
Read Also: How Much Cash You Can Deposit to Prepay Home Loan Without I-T Notice
FAQs
1. Is Form 121 mandatory?
Not mandatory, but needed to avoid TDS when your income is below the taxable limit.
2. Do senior citizens still get special benefits?
Yes. They can file Form 121 even with higher interest income as long as total income is non-taxable.
3. Can NRIs file Form 121?
No. Only resident individuals can file it.
4. Will banks accept Form 15G and 15H now?
No. Form 121 has now replaced both.
5. What if TDS is still deducted?
You must claim a refund while filing your income-tax returns.
Conclusion
Form 121 is a welcome relief for millions of taxpayers. It reduces chaos, saves money and makes compliance smooth. If your income is below the exemption limit, filing Form 121 early in the year is the smartest financial step you can take today.
Take action before your bank deducts the next TDS cycle.
Disclaimer: Edutaxtuber and its affiliates are not responsible for any losses or actions taken based on this article. This is strictly for educational and informational purposes only.
