New Income Tax Form 121 Introduced to Replace Forms 15G and 15H
Income-tax returns: Form 121 replaces Form 15G, 15H — Who is eligible, where to download and how to avoid TDS, explained
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The Income-Tax Act (ITA) 2025 has introduced Form 121, replacing Forms 15G and 15H to simplify tax processes in India. This unified form is applicable for taxpayers to avoid Tax Deducted at Source (TDS) on various incomes, provided they meet specific eligibility criteria. Taxpayers should submit Form 121 annually before interest is credited to avoid TDS deductions.
- 01Form 121 replaces Forms 15G and 15H for TDS declarations.
- 02Applicable for individuals and Hindu Undivided Families (HUFs) to prevent TDS on incomes below taxable limits.
- 03Eligibility includes being an Indian resident with zero tax liability after exemptions.
- 04Form 121 must be submitted annually before interest is credited to avoid TDS.
- 05Taxpayers can download Form 121 from the Income Tax Department's website.
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The Income-Tax Act (ITA) 2025, effective from April 1, 2025, has streamlined India's tax forms by introducing Form 121, which replaces the previous Forms 15G and 15H. This new form is designed for individuals and Hindu Undivided Families (HUFs) to prevent the deduction of Tax Deducted at Source (TDS) on dividends, interest, and other incomes when their earnings are below the taxable threshold. The basic exemption limit is ₹2.5 lakh for individuals under 60 years and ₹3 lakh for senior citizens under the old regime, while the new regime sets it at ₹4 lakh for all individuals. To avoid TDS, taxpayers must submit Form 121 before interest is credited, ideally in April for the tax year 2026-27. If TDS is deducted due to non-submission, taxpayers can claim a refund after processing their Income Tax Return (ITR). Form 121 can be downloaded from the Income Tax Department's website.
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The introduction of Form 121 simplifies the process for taxpayers to avoid TDS on their income, potentially increasing their net earnings if they qualify under the exemption limits.
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