Form 121 — Non Deduction of TDS
Replaces Form 15G & 15H from April 1, 2026
Understand the new declaration for eligible taxpayers requesting non-deduction of TDS and download the official Form 121 PDF for reference.
Senior citizens who previously relied on Form 15H should also understand how pension, interest income and TDS affect their return. See our guide to ITR filing for senior citizens and pensioners.
✓ Guided by CA Sagar Batra
CA Sagar Batra
Chartered Accountant & Tax Expert
1. What Is Form 121 for Non-Deduction of TDS?
Form No. 121 is the unified declaration prescribed under the Income-tax Rules, 2026 for eligible taxpayers who want specified income to be received without deduction of TDS.
From April 1, 2026, it replaces the earlier Form 15G and Form 15H framework under the Income-tax Act, 2025. Instead of separate forms based mainly on age and taxpayer category, Form 121 provides a common declaration format under Section 393(6) and Rule 211.
Used by eligible individuals below 60 and certain other eligible persons.
Used by eligible resident senior citizens.
A unified declaration for eligible persons under the new tax framework.
What Does Form 121 Actually Do?
Form 121 allows an eligible taxpayer to declare that the tax payable on their estimated total income for the relevant tax year is nil. Based on a valid declaration, the payer may make specified payments without deducting TDS.
This can be relevant for specified receipts such as eligible interest, dividends and other payments covered by Section 393(6).
Prevent eligible taxpayers with nil estimated tax liability from having unnecessary TDS deducted first and then waiting to claim the same amount back as a refund after filing their return.
Form 121 Does Not Automatically Apply to Every Type of Income
Form 121 is not a general instruction to stop TDS on every receipt you earn. It applies to the specified payments covered by the law and only when the eligibility conditions are satisfied.
For example, a retired person may have pension income as well as fixed-deposit interest. Form 121 may be relevant for eligible interest payments, but pension income itself follows its own TDS and income-tax treatment.
Suppose a retired resident earns pension income along with fixed-deposit interest. After considering the applicable provisions, the person's estimated total tax liability for the tax year is nil.
If the interest payment and taxpayer satisfy the conditions prescribed for Form 121, the declaration can be furnished to the bank so that TDS is not deducted on that eligible interest payment.
Form 121 should not be submitted merely because your bank is deducting TDS. Your estimated tax liability and the other eligibility conditions prescribed under Section 393(6) must first be checked.
One Unified Form Instead of Form 15G & Form 15H
Effective from 1 April 2026
Prescribed under Rule 211
Declaration under Section 393(6)
Used for specified income where applicable TDS need not be deducted
2. Why Form 121 Is Used
Form 121 helps eligible taxpayers avoid unnecessary TDS deduction on specified income when the prescribed conditions for non-deduction are satisfied.
The primary purpose of this form is to protect your cash flow. When a bank pays interest on a fixed deposit, it may deduct TDS at the applicable rate if the relevant threshold and tax rules are triggered.
If your estimated total tax liability for the year is nil and you satisfy the conditions for Form 121, that TDS deduction may be unnecessary. Without a valid declaration, you may have to wait until you file your Income Tax Return and claim the excess TDS back as a refund.
Avoid Unnecessary TDS and Refund Delays
By submitting Form 121 to the relevant bank or payer, an eligible taxpayer can request that TDS not be deducted from specified income covered by the declaration.
This means the eligible amount reaches you directly instead of first being reduced by TDS and later being recovered through an income-tax refund.
Why This Matters for Senior Citizens
Many senior citizens depend on monthly or quarterly fixed-deposit interest to help meet household expenses.
If TDS is deducted even though their estimated final tax liability is nil, part of that cash remains unavailable until the excess tax is claimed back through the return.
Filing a valid Form 121 early can help an eligible taxpayer avoid this unnecessary deduction on covered payments and retain more usable cash during the year.
A payer should not stop TDS merely because Form 121 is requested. The taxpayer must satisfy the applicable eligibility conditions, including the requirement relating to estimated tax liability and the nature of the payment.
Form 121 Helps Keep Eligible Income in Your Hands Instead of Waiting for a Refund
When you legitimately qualify for non-deduction of TDS, submitting the declaration to the payer can improve cash flow and reduce the need to recover excess TDS later through your ITR.
3. Who Can Apply for Form 121?
Form 121 is available only to eligible persons who satisfy the conditions for non-deduction of TDS under the applicable provisions.
Eligible Applicant Categories
Eligible resident individuals can include persons below 60 as well as senior citizens, subject to the conditions applicable to their estimated income and tax liability.
An eligible HUF may furnish Form 121 where the prescribed conditions for non-deduction of TDS are satisfied.
Certain specified persons or entities may qualify where the law permits the declaration and the relevant income and tax conditions are met.
Who Cannot Use Form 121?
Form 121 is not available to every taxpayer category. Non-residents, partnership firms and companies should check the separate TDS provisions and procedures applicable to them instead of assuming Form 121 can be used.
An NRI should not use Form 121 merely because their estimated Indian tax liability appears low or nil. Non-resident payments can follow separate withholding and lower-deduction procedures.
Form 121 Eligibility by Taxpayer Category
| Category | Eligible? | Remarks |
|---|---|---|
| Resident Individual (below 60) | Yes | Must satisfy the applicable income and estimated-tax conditions for the declaration. |
| Resident Individual (60 years or above) | Yes | Eligible where the prescribed conditions, including the relevant estimated tax-liability requirement, are met. |
| HUF (Hindu Undivided Family) | Yes | Can qualify subject to the conditions applicable to Form 121 and the relevant payment. |
| Trusts / Specified Entities | Conditional | Eligibility depends on whether that category of person is permitted to furnish the declaration and whether the prescribed conditions are met. |
| NRI (Non-Resident Indian) | No | Form 121 is not the declaration route for non-residents; separate TDS provisions and procedures may apply. |
| Partnership Firms | No | Not covered by the eligible declaration framework described for Form 121. |
| Companies (Private / Public) | No | Companies follow separate TDS provisions. Where lower or nil deduction is required, the applicable certificate procedure should be checked separately. |
You must also satisfy the income, estimated tax liability and payment-specific conditions prescribed for Form 121 before furnishing the declaration to the payer.
4. Conditions for Non-Deduction of TDS
Being eligible to use Form 121 is only the first step. The declaration works only when the prescribed income, tax-liability and timing conditions are satisfied.
You Must Be an Eligible Resident
A resident individual can furnish Form 121 subject to the prescribed conditions. Non-residents cannot use this declaration route.
Estimated Total Tax Must Be NIL
The tax payable on your estimated total income for the relevant tax year must be nil after considering the provisions that legitimately apply to your case.
Specified Payments Must Stay Within the Applicable Limit
For a person covered by the additional income-limit condition, the aggregate amount of the specified income or sums covered by Form 121 that are paid, credited or likely to be paid or credited during the tax year must not exceed the maximum amount not chargeable to tax applicable for that year.
Senior Citizens Get Different Treatment
A resident individual who is 60 years or older at any time during the tax year is not subject to the same aggregate-payment ceiling condition described above.
However, the estimated tax on total income must still be NIL.
Submit Form 121 Before the Relevant Payment
Furnish the declaration to the payer before the specified income is credited or paid if you want that payment to be made without TDS.
For recurring interest, submitting the declaration early in the tax year can help ensure the payer has it before the first applicable credit or payment.
Below 60 vs. Age 60 or Above
Form 121 is meant for eligible taxpayers whose estimated final tax liability is nil. The fact that a bank is about to deduct TDS does not by itself make you eligible to file the declaration.
Form 121 Does Not Reverse TDS Already Deducted
If TDS has already been deducted on a payment, submitting Form 121 afterwards does not automatically reverse that deduction.
You would generally need to reconcile the TDS credit and, where eligible, claim the excess tax through your Income Tax Return.
Practical approach: review your eligibility early in the tax year and submit Form 121 before the payer processes the relevant income.
Form 121 Is a Preventive Declaration — Not a Refund Form
Use it before eligible income is paid or credited, after confirming that your estimated tax position and the applicable statutory conditions allow you to request non-deduction of TDS.
5. Eligible Income Types Under Form 121
Form 121 can be furnished for specified payments covered by Section 393(6) of the Income-tax Act, 2025 when the taxpayer and payment satisfy the prescribed conditions.
The declaration is linked to specific TDS provisions. Before submitting it, identify both the nature of the payment and whether you satisfy the eligibility conditions explained earlier.
| S.No. | Nature of Income / Payment | Common Source | General TDS Treatment* |
|---|---|---|---|
| 01 | Bank FD & Deposit Interest Interest other than interest on securities | Banks, co-operative banks and eligible deposit-taking institutions | Rates in force |
| 02 | Post Office Deposit Interest Eligible notified deposit schemes | Post Office | Rates in force |
| 03 | Dividend Income Dividend declared by a domestic company | Equity shares and preference shares | 10% |
| 04 | Income from Specified Units Covered mutual-fund / specified-unit income | Mutual funds, specified undertakings or specified companies | 10% |
| 05 | Interest on Securities Where covered by the specified TDS provision | Bonds, debentures and specified securities | Rates in force |
| 06 | Taxable Life Insurance Policy Payments Only payments falling within the relevant TDS provision | LIC and private insurers | 2% of income component |
| 07 | Taxable EPF / PF Withdrawal Accumulated balance covered by Section 392(7) | EPFO / recognised provident fund | 10% |
| 08 | Insurance Commission Commission for soliciting or procuring insurance business | Insurance companies / insurance business | Rates in force |
| 09 | Rent — Specified Cases Only rent covered by the relevant Section 393 provision | Specified rent payments | 2% / 10% depending on asset |
Form 121 Mainly Covers These Payment Groups
Bank deposits, post-office deposits and specified securities.
Dividends and qualifying income from specified units.
Certain taxable PF withdrawals and qualifying life-insurance policy payments.
Insurance commission and specified rent receipts.
Form 121 prevents deduction only when a valid declaration can legally be furnished. Your estimated tax liability, taxpayer category, payment amount and other conditions must still satisfy Section 393(6).
Rate note: TDS rates, thresholds and payment conditions can change through Finance Acts and other amendments. Always verify the rate applicable to your exact payment and tax year before relying on this table. — CA Sagar Batra
6. Form 121 vs Form 128 — Key Differences
Both forms can help prevent excessive TDS, but they work very differently. Form 121 is a declaration for specified eligible income, while Form 128 is an application for an official lower or nil deduction certificate.
Under the Income-tax Rules, 2026, Form 128 is the application for a lower or nil deduction certificate under Section 395. Form 131 serves a different purpose and should not be confused with this application.
Self-Declaration Route
Used by eligible persons for receipt of specified income without TDS where the conditions under Section 393(6) are satisfied.
Lower / Nil TDS Certificate
Used to apply for an official certificate authorising lower-rate or nil deduction of tax under Section 395.
| Criteria | Form 121 | Form 128 |
|---|---|---|
| Purpose | Receive specified eligible income without deduction of TDS when the declaration conditions are satisfied. | Apply for a certificate permitting lower-rate or nil TDS / applicable lower TCS treatment. |
| Legal Provision | Section 393(6) and Rule 211. | Section 395(1) / 395(3) and Rule 213. |
| Who Can Use | Eligible resident individuals, HUFs and other persons permitted under the prescribed declaration framework. | Any eligible person, including a resident or non-resident, seeking a lower or nil deduction certificate subject to Section 395 conditions. |
| Approval | Self-Declaration No separate lower-TDS certificate from the Assessing Officer is required. | Certificate Required The application is examined by the relevant income-tax authority before a certificate is issued. |
| When to Use | When your estimated tax liability is nil and the specific payment satisfies the conditions prescribed for Form 121. | When the normal TDS rate is higher than the rate justified by your expected tax position, or where nil deduction is sought through a certificate. |
| Where Filed | Furnished to the payer in the permitted electronic or paper manner. | Filed electronically through the prescribed Income Tax / TRACES process. |
| Processing | No separate Assessing Officer certificate process, but the payer must receive and process a valid declaration before the relevant deduction. | Requires examination by the tax authority before the lower or nil deduction certificate is issued. No universal fixed processing period should be assumed. |
| Validity | Furnished for the relevant tax year and applicable specified payments. | Valid according to the period, rate, payer and conditions stated in the certificate. |
| Legacy Form | Replaces the earlier Forms 15G and 15H. | Replaces the earlier Form 13. |
| False Information | A knowingly false statement in the declaration can attract consequences, including prosecution under Section 482. | Information in the application must be true and complete. Incorrect or false information can affect the application or certificate and may attract consequences under the Act. |
Start with Your Actual Tax Position
Your estimated tax liability is nil, your income falls within the specified Form 121 payment categories, and all declaration conditions are met.
You need an official lower or nil deduction certificate because the normal withholding rate does not appropriately reflect your expected tax liability.
Use Form 121 only when you genuinely satisfy its nil-tax and payment-specific conditions. If you do not qualify for Form 121 but your normal TDS rate is higher than what your actual tax position justifies, Form 128 may be the appropriate lower or nil deduction certificate route.
Never furnish Form 121 simply to stop tax deduction when the eligibility conditions are not met.
Form 131 is a certificate relating to tax deducted at source on specified income other than salary, pension or specified senior-citizen interest. It is not the application used to request a lower or nil deduction certificate.
7. Form 121 vs Old Forms 15G & 15H — What Changed?
The transition from Forms 15G and 15H to Form 121 is a major TDS compliance change for individual taxpayers. The new form combines the earlier declaration framework into one unified format from April 1, 2026.
Unified nil-TDS declaration framework
| Feature | Form 15G (Old) | Form 15H (Old) | Form 121 (New) |
|---|---|---|---|
| Applicable To | Individuals below 60 | Senior citizens (60+) | All eligible individuals, HUFs, trusts |
| Effective From | Legacy | Legacy | April 1, 2026 |
| Age Restriction | Below 60 only | 60 and above only | No age restriction — unified |
| UIN System | No | No | Yes — Unique ID per form |
| Auto Data Sharing with IT Dept. | Manual / Batch | Manual / Batch | Real-time digital reporting |
| Governing Act | Income Tax Act, 1961 | Income Tax Act, 1961 | Income Tax Act, 2025 |
| Governing Section | Section 197A | Section 197A | Section 393(6) |
| Still Valid? | Discontinued | Discontinued | Active |
The Main Shift Is From Two Age-Based Forms to One Unified Declaration
Form 121 replaces the separate Form 15G and Form 15H declaration structure.
Eligible persons now use one common Form 121, while applicable eligibility conditions can still differ by taxpayer category.
The declaration now operates under the Income Tax Act, 2025 and Section 393(6).
The new form introduces a unified structure for declaring eligible income for non-deduction of TDS.
Form 121 removes the need for separate Form 15G and Form 15H documents, but age, taxpayer category, estimated tax liability and payment-specific conditions can still affect whether a declaration is valid.
Simple takeaway: for eligible payments from April 1, 2026 onward, taxpayers should check whether Form 121 applies instead of relying on the old Form 15G or Form 15H process.
8. How to Apply for Form 121 — Step-by-Step Guide
Complete the tax check first, fill Part A carefully and submit the declaration to each relevant payer before the income is credited or paid.
Calculate Your Estimated Total Income
Add all relevant income for the tax year — such as pension, salary, fixed-deposit interest, dividends, rental income and other taxable receipts.
Calculate estimated total income after considering eligible deductions under Chapter VIII, permitted house-property loss set-off and applicable rebate. Your estimated tax liability must satisfy the Form 121 conditions discussed above.
Download Form 121
Obtain Form 121 from the Income Tax Department's prescribed forms or use the submission facility made available by the bank, financial institution or other payer.
The payer is required to enable the declaration to be furnished either in paper form or electronically after due verification.
Download Form 121 PDF →Fill Your Declaration Details
Complete Part A carefully with your personal, income and tax-year information.
If you have already furnished another Form 121 during the same tax year, disclose the required details of those earlier declarations and the related income.
Read and Verify the Declaration
Review the declaration statements carefully before submitting Form 121. The information must correctly reflect your residential status, estimated income, previous declarations and expected tax liability.
If the payer provides an electronic process, complete the prescribed electronic verification. If you use the paper route, complete the declaration in the manner required on the form.
Do not submit Form 121 if the declaration is not true for your actual estimated tax position.
Submit Form 121 to Each Relevant Payer
Furnish the declaration to every bank, institution or other payer from whom you expect a specified payment without deduction of TDS.
Submission may be made in paper form or through the electronic process enabled by that payer.
Submit before the relevant payment or credit so the payer can rely on the declaration before deducting TDS.
Keep the UIN and Submission Record
The payer allots a Unique Identification Number (UIN) to each Form 121 declaration received.
Keep the UIN and your submission acknowledgement for your records. The payer uses the declaration details and UIN when completing the prescribed TDS reporting and Part B requirements.
Keep a copy of Form 121, the UIN and any acknowledgement issued by the payer.
Declarant vs Payer Responsibilities
- Check eligibility
- Calculate estimated income and tax
- Fill Part A accurately
- Submit to the relevant payer
- Keep acknowledgement and UIN
- Receive and process the declaration
- Allot a UIN
- Complete prescribed payer verification
- Report declaration details in TDS reporting
- Retain declaration for prescribed verification
The payer may rely on your declaration for non-deduction of tax. Recheck PAN, estimated total income, tax liability, income amount and previous Form 121 declarations before submission.
9. Form 121 Filled Sample — For Reference
The example below shows how a resident senior citizen may fill Part A of Form 121 for eligible bank interest income. The details are illustrative only and must not be copied into your actual declaration.
Names, PAN, income figures, acknowledgement numbers and other details below are dummy examples created only to explain the form structure.
FORM NO. 121
[See Rule 211]
Declaration under section 393(6) for receipt of certain incomes without deduction of taxThis NIL-tax conclusion is shown separately for explanation. It is confirmed through the declaration rather than being an additional field inside Column 13.
| Sl. | Tax Year | Acknowledgment Number | Return Income |
|---|---|---|---|
| 1 | 2024-25 | 123456789012345 | ₹2,75,000 |
| 2 | 2025-26 | 987654321098765 | ₹2,90,000 |
I, Anil Kumar Sharma, having Permanent Account Number AGXPS1234K, declare that:
To the best of my knowledge and belief, the information stated above is correct, complete and truly stated.
The incomes referred to in this form are not includible in the total income of another person under sections 96 to 99.
Tax on my estimated total income referred to in Column 13, including the income covered by Column 12, for Tax Year 2026-27 will be NIL.
The Column 12 income-limit declaration is not applicable in this example because the declarant is a resident individual aged 60 years or more during the tax year.
If this declaration is found to be false, the declarant may be liable to prosecution or penalty under the Income-tax Act, 2025.
Part B Is Completed by the Bank / Payer
The person responsible for paying the income completes the prescribed payer verification. This includes declarant details, income figures, date of receipt and the Unique Identification Number (UIN) allotted to the declaration.
Calculate your own estimated income and tax position before filing. Do not use the ₹3,00,000 figure, PAN, income details or previous-return details shown in this example.
10. Common Mistakes to Avoid
Based on practical tax-filing experience, these are some of the most common mistakes taxpayers should avoid while preparing and submitting Form 121.
Form 121 is a declaration for non-deduction of TDS. It does not remove an actual tax liability if your final income or tax position changes during the year.
| Mistake | Possible Consequence | How to Avoid It |
|---|---|---|
|
01
Submitting After TDS Is Deducted
|
TDS already deducted may not be reversed through Form 121, and the excess may need to be claimed through your ITR. | Submit the declaration before the relevant payment or interest credit on which TDS would otherwise apply. |
|
02
Forgetting Other Banks or Institutions
|
A bank or payer that has not received your declaration may continue deducting TDS. | Maintain a list of every bank or payer from whom you expect income and confirm submission separately. |
|
03
Incorrect or Mismatched PAN
|
The declaration can face validation or processing problems if PAN details do not match official records. | Cross-check your PAN, name and other identification details before submission. |
|
04
Assuming Form 121 Means Tax Exemption
|
Tax may still become payable if your income or tax position changes later during the tax year. | Recalculate your estimated income and tax whenever there is a major change in salary, interest, investments, rent or other income. |
|
05
Not Saving the UIN
|
It may become harder to prove or track the declaration if a TDS discrepancy arises later. | Save the UIN, acknowledgement and a copy of the submitted declaration in your tax records. |
|
06
Ignoring a Change in Residential Status
|
Your eligibility can change if you no longer satisfy the residential-status conditions applicable to Form 121. | Recheck eligibility and inform the relevant payer if your residential status changes during the year. |
|
07
Using the Wrong Income Figure
|
An incorrect estimate can lead to a wrong eligibility conclusion or an inaccurate declaration. | Calculate estimated total income carefully after considering the deductions, rebate and other adjustments applicable to your case. |
Your Tax Position Can Change During the Year
New fixed deposits or higher interest income
Additional salary, pension or rental income
Dividend or investment income increases
Deductions or rebate eligibility changes
If any major income figure changes after submitting Form 121, recalculate your estimated tax liability instead of assuming the original declaration remains appropriate.
The safest approach is to calculate your expected income first, submit Form 121 before the relevant payment or credit, and then review your tax position again if your income changes materially during the year.
Simple rule: never treat Form 121 as a shortcut to avoid tax. Use it only where your declaration is accurate and you satisfy the applicable conditions for non-deduction of TDS.
11. Latest Updates — Income-tax Act & Rules 2026
From April 1, 2026, the new Income-tax Act, 2025 and Income-tax Rules, 2026 changed the declaration framework previously used through Forms 15G and 15H.
Form 121 is now the prescribed declaration under Section 393(6) for eligible persons seeking receipt of specified income without deduction of tax.
One Unified Form
Form 121 replaces the earlier Forms 15G and 15H from Tax Year 2026-27 onward.
Instead of maintaining separate declaration forms mainly based on age, eligible declarants now use a common Form 121 framework.
Unique Identification Number
The payer must allot a Unique Identification Number (UIN) to each Form 121 declaration received.
Under the prescribed 2026 procedure, the UIN is a 26-character identifier used for tracking and reporting the declaration.
Structured Electronic Reporting
Declaration information is now tied to the allotted UIN and reported electronically by the payer.
The payer furnishes Part B and also reports declaration particulars with the UIN in the prescribed quarterly TDS statement.
Electronic or Paper Submission
Form 121 may be furnished to the payer electronically after due verification or in paper form.
The exact submission facility available to you can depend on the bank, financial institution or other payer receiving the declaration.
Section 393(6) Replaces the Old Framework
Forms 15G and 15H operated under Section 197A of the Income-tax Act, 1961.
Form 121 is prescribed under the corresponding framework of Section 393(6) and Section 393(7) of the Income-tax Act, 2025.
New Rule 211
Rule 211 of the Income-tax Rules, 2026 prescribes Form 121 and the procedure relating to its submission, UIN allotment and payer reporting.
Form 121 Compliance Flow
Submits Form 121 to the payer
Verifies declaration
Unique number allotted
Details uploaded electronically
UIN and transaction details reported
Form 121 creates a stronger digital audit trail, but the prescribed process should not be described as real-time reporting. Payers furnish Part B electronically and report relevant declaration details and UINs through the required reporting process.
Old Framework vs New 2026 Framework
- Income-tax Act, 1961
- Section 197A
- Rule 29C
- Separate Form 15G / 15H structure
- Income-tax Act, 2025
- Section 393(6) / 393(7)
- Rule 211
- Unified declaration + UIN reporting
The UIN-based reporting system creates a clearer record of declarations submitted to different payers. Taxpayers should therefore ensure that estimated income, previous Form 121 declarations and other information disclosed in every form are complete and consistent.
Do not use old Form 15G or Form 15H for a tax year beginning on or after April 1, 2026. Check Form 121 eligibility and furnish the prescribed declaration to the relevant payer.
12. Practical Form 121 Scenarios
These simplified examples show when Form 121 may or may not be appropriate. Actual eligibility depends on your complete estimated income, tax liability and the nature of the payment.
Form 121 eligibility is checked using your estimated tax position for the entire tax year. Salary, pension, rent, business income, dividends, interest and other relevant income may all affect the result.
Before reviewing whether a non-deduction declaration may apply, you can check your FD interest before TDS to estimate the interest your deposit may generate.
Retired Senior Citizen with Multiple FDs
Mrs. Iyer, age 67, has fixed deposits with three different banks. Her total annual FD interest is ₹3.5 lakh.
After considering her complete estimated income and the provisions applicable to her, her estimated tax liability for the tax year is NIL.
As a resident individual aged 60 or above, she can potentially furnish Form 121 for eligible interest payments if the other prescribed conditions are met.
She should furnish the declaration separately to each relevant bank before the applicable interest payment or credit.
Young Professional with Limited Income
Rohit, age 28, expects ₹1.5 lakh of eligible FD interest and ₹70,000 of other income during the tax year.
His estimated total tax liability is NIL and the aggregate specified income covered by Form 121 remains within the applicable maximum amount not chargeable to tax.
Both the NIL-tax condition and the additional specified-income ceiling applicable to him are satisfied in this illustration.
He may furnish the declaration to the bank for the eligible interest payment.
Taxpayer with Actual Tax Payable
Kavita earns salary as well as ₹2.8 lakh of FD interest. After calculating her complete estimated income and applicable tax treatment, her final estimated tax liability is not NIL.
She cannot legitimately use Form 121 merely because she wants the bank to stop deducting TDS.
The core NIL estimated-tax condition is not satisfied. A declaration containing knowingly false information can attract consequences under the Act.
Normal TDS provisions continue to apply unless another lawful lower or nil deduction mechanism is available.
HUF with Eligible Interest Income
The Gupta HUF expects ₹2.1 lakh of eligible FD interest during the tax year.
Its estimated total tax liability is NIL and the aggregate specified income covered by the declaration is within the applicable maximum amount not chargeable to tax.
If all other Form 121 requirements are satisfied, the declaration may be furnished on behalf of the HUF with the taxpayer status correctly stated as HUF.
Both the NIL-tax condition and the applicable aggregate specified-income condition must continue to be satisfied.
4 Things That Decide Whether Form 121 Works
The taxpayer must fall within an eligible resident category.
Tax on estimated total income must be NIL.
The payment must be one of the specified categories covered by Form 121.
Below-60 individuals and other applicable persons must also satisfy the aggregate specified-income limit.
Resident individuals aged 60 years or more receive relief from the additional aggregate specified-income ceiling, but their estimated tax liability must still be NIL before Form 121 can be validly furnished.
Never decide Form 121 eligibility only from the amount shown on one fixed deposit. First calculate your complete estimated income and tax liability for the year, then check the Form 121 conditions applicable to your age and taxpayer category.
Illustrative examples only: these scenarios simplify the facts for explanation. Actual eligibility can change depending on income composition, deductions, special-rate income, residential status and other provisions applicable to the taxpayer.
13. Form 121 vs Form 128 (Earlier Form 13)
Both forms can help reduce unnecessary TDS, but they work differently. Form 121 is a declaration furnished directly to the payer, while Form 128 is an application for an official lower or nil deduction certificate.
Under the Income-tax Rules, 2026, Form 128 is the corresponding form for the earlier Form 13. It is used to apply for a certificate for lower or nil deduction of income-tax under Section 395(1), and lower collection under Section 395(3).
Self-Declaration
Used for specified payments when the taxpayer satisfies the Form 121 conditions, including the applicable NIL estimated-tax requirement.
Certificate Application
Used where a taxpayer wants an official certificate authorising deduction at a lower rate or NIL rate.
| Aspect | Form 121 | Form 128 (Earlier Form 13) |
|---|---|---|
| Who Files? | Eligible taxpayer furnishes a declaration directly to the relevant payer. | Eligible taxpayer files an electronic application for the lower / nil deduction certificate. |
| Purpose | Receive specified eligible income without deduction of TDS where the declaration conditions are satisfied. | Obtain a certificate authorising lower or NIL TDS; it can also cover lower TCS where applicable. |
| Legal Route | Section 393(6) and Rule 211. | Section 395(1) / 395(3) and Rule 213. |
| Tax Position | Estimated tax liability must satisfy the prescribed NIL-tax condition along with other payment-specific requirements. | Lower or NIL deduction can be requested based on the applicant's estimated income and expected tax liability. |
| Income-tax Officer Approval | Not Required It operates as a declaration furnished to the payer, subject to statutory eligibility and processing. | Required The application is processed and the lower / nil deduction certificate is issued where approved. |
| NRI / Non-Resident | Not Available Form 121 is based on the eligible resident declaration framework. | Available Resident as well as non-resident applicants may apply where Section 395 conditions are satisfied. |
| Filing Method | Furnished to the payer through the permitted paper or verified electronic process. | Filed electronically through the prescribed TRACES process with supporting information. |
| Supporting Documents | Primarily a prescribed declaration containing income and tax-estimation details. | May require estimated income and tax computation, payer details, previous returns, financial statements and other supporting information. |
| Processing | No separate Assessing Officer certificate process. The payer receives and processes the declaration. | Requires processing by the Assessing Officer / prescribed system before the certificate becomes available. |
| Time to Obtain | No separate certificate needs to be obtained, although the declaration should be submitted before the relevant TDS event. | Processing time can vary depending on verification, facts and documents. Do not assume a fixed 30-day period. |
| Validity | Declaration relates to the relevant tax year and specified payments covered by it. | Certificate remains valid for the period and conditions stated in it, unless modified or withdrawn earlier. |
| Earlier Form | Replaces the earlier Forms 15G and 15H. | Corresponding new form for Form 13. |
Which Form Should You Consider?
- You are an eligible resident taxpayer
- The payment is covered by Form 121
- Estimated tax liability satisfies the NIL-tax requirement
- Other income-limit conditions are met where applicable
- Standard withholding may be excessive
- Your expected tax position supports a lower or NIL deduction
- You may be resident or non-resident
- You can provide the required income, tax and payer details
Understand the Difference Practically
Resident Senior Citizen with NIL Estimated Tax
An eligible resident senior citizen has bank interest covered by Form 121 and estimated total tax liability is NIL.
→ Form 121 may be the relevant declaration route.Taxpayer Whose Normal TDS Rate Is Excessive
A taxpayer expects some tax liability, but the normal withholding rate would result in substantially higher deduction than the expected final tax.
→ Form 128 may be used to seek a lower-rate certificate.The difference is not simply “Form 121 = zero TDS” and “Form 128 = reduced TDS.” Form 128 can also result in a NIL-deduction certificate where justified. The key difference is that Form 121 is a prescribed declaration, whereas Form 128 involves an application and certificate process.
If you clearly satisfy Form 121's declaration conditions for the specified income, the self-declaration route may be enough. If your case requires an official lower or NIL withholding certificate based on your expected tax liability, Form 128 is the appropriate route to examine.
2026 terminology: when searching for the old “Form 13 lower TDS certificate,” look for Form 128 (Earlier Form 13) under the Income-tax Rules, 2026.
14. Frequently Asked Questions
Quick answers to common questions about Form 121, eligibility, submission, UIN, TDS and the new 2026 declaration framework.
It can prevent TDS on specified eligible payments when the statutory conditions are satisfied. Your actual income-tax liability is still determined separately.
01 What is Form 121? +
Form 121 is the prescribed declaration under Section 393(6) of the Income-tax Act, 2025 and Rule 211 of the Income-tax Rules, 2026 for receipt of specified income without deduction of tax.
It can be furnished only when the declarant and the payment satisfy the applicable eligibility conditions, including the required estimated-tax test.
02 Has Form 121 replaced Form 15G and Form 15H? +
Yes. From the new 2026 tax framework, Form 121 is the corresponding unified declaration replacing the earlier Forms 15G and 15H.
The old forms operated under Section 197A of the Income-tax Act, 1961, while Form 121 operates under Sections 393(6) and 393(7) of the Income-tax Act, 2025.
03 Can an NRI file Form 121? +
Form 121 is not the declaration route for an NRI / non-resident individual. Non-resident income follows separate withholding provisions.
Depending on the facts, an NRI may need to examine applicable DTAA provisions or a lower / nil deduction certificate route such as Form 128 (Earlier Form 13).
04 Is it mandatory to file Form 121? +
No. Form 121 is not mandatory. It is used when an eligible taxpayer wants a specified payment to be made without TDS and satisfies the declaration conditions.
If no valid Form 121 is furnished and the payment otherwise attracts TDS, the payer will generally deduct tax according to the applicable provisions. Any excess TDS can later be claimed as tax credit and, where eligible, refunded through the ITR process.
05 When should I submit Form 121? +
Submit Form 121 before the relevant income is credited or paid if you want the payer to rely on the declaration before deducting TDS.
For recurring interest, reviewing eligibility early in the tax year can be practical. However, there is no universal statutory rule requiring every taxpayer to submit it specifically by April 10.
06 Can Form 121 be submitted online? +
Yes. Rule 211 allows Form 121 to be furnished electronically after due verification through an electronic process. Paper submission is also permitted.
The actual electronic facility available to you depends on the bank, financial institution or other payer receiving the declaration. The form should therefore be submitted through the process supported by that payer.
07 Who generates the UIN for Form 121? +
The payer / deductor receiving Form 121 is responsible for allotting a Unique Identification Number (UIN) to each declaration in accordance with the prescribed procedure.
The payer also reports the declaration particulars together with the UIN through the prescribed TDS reporting process.
08 What if TDS was already deducted before I filed Form 121? +
Form 121 does not automatically reverse TDS that has already been deducted.
The deducted amount should normally be reconciled with your tax records and can be claimed as TDS credit in your Income Tax Return. If the credit exceeds your final tax liability, the eligible excess may be processed as a refund.
Refund processing time can vary, so a fixed 3–6 month timeline should not be assumed.
09 What happens if I give false information in Form 121? +
Form 121 requires the declarant to confirm that the information furnished is true, correct and complete.
The official form specifically states that a person making a false statement in the declaration may be liable to prosecution under Section 482 of the Income-tax Act, 2025.
10 Do I need to submit Form 121 every year? +
Form 121 is furnished with reference to a particular tax year. Your income, tax liability and eligibility should therefore be reassessed for each new tax year.
Where you expect eligible payments from multiple payers, the relevant declaration must be furnished to each payer that needs to rely on it for non-deduction of TDS.
11 Can a senior citizen use Form 121 if interest is high? +
A resident individual who is 60 years or more at any time during the tax year is not subject to the same aggregate specified-income ceiling that applies to other Form 121 declarants.
However, the tax on the person's estimated total income must still be NIL. Age 60+ does not create automatic eligibility.
12 Does Form 121 mean I do not have to file an ITR? +
No. Form 121 only deals with non-deduction of TDS on specified payments.
Whether you are required to file an Income Tax Return is determined separately under the applicable return filing provisions and your individual tax situation.
Your Form 121 declaration should match your expected income, previous declarations and actual eligibility for the relevant tax year. If your income changes materially, review the position again.
15. Quick Checklist Before You Submit Form 121
Use this final checklist before furnishing Form 121 to your bank, financial institution or other relevant payer.
Form 121 should be submitted only after confirming that your estimated income, tax liability and payment-specific conditions satisfy the declaration requirements.
Include all relevant income expected during the tax year — such as salary, pension, interest, dividends, rent and other taxable receipts.
Apply eligible deductions, set-offs and rebates under the Income-tax Act, 2025 according to your applicable tax regime and individual circumstances.
The tax payable on your estimated total income for the relevant tax year must satisfy the NIL-tax condition required for Form 121.
If you are below 60 or otherwise covered by the additional ceiling condition, confirm that the aggregate specified payments do not exceed the applicable maximum amount not chargeable to tax.
Verify that the PAN entered in Form 121 is correct, valid and operative, and that your name and other identification details match your records.
Keep the payer's TAN, details of the relevant income or investment, and applicable bank-account information ready before completing the declaration.
If you are declaring that you are aged 60 years or more at any time during the tax year, keep appropriate proof of age available.
Furnish Form 121 to each bank, institution or other payer that needs to rely on the declaration before making the specified payment without TDS.
Do not rely on an assumed April 30 deadline. Submit Form 121 before the relevant income is credited or paid so the payer can process it before TDS arises.
Confirm that your residential status for the relevant tax year supports Form 121 eligibility. Do not rely automatically on your status from the previous year.
Recheck income figures, tax year, PAN, taxpayer status, age declaration, contact details and information about the income for which non-deduction is requested.
After submission, preserve your Form 121 copy and acknowledgement. The payer allots the Unique Identification Number (UIN) for the declaration — keep it safely for future reference.
Important Details & Documents
Don't Wait for a Fixed Calendar Deadline
For recurring interest income, completing this process near the beginning of the tax year can be practical, provided you have first made a reasonable estimate of your annual income and tax position.
Save the acknowledgement, UIN and a copy of the declaration in one folder. If submitted electronically, you can also retain the confirmation screen or downloadable receipt provided by the payer.
Final check: if your income increases or your tax position changes after Form 121 is submitted, recalculate your estimated tax liability instead of assuming the declaration remains appropriate for the entire year.
16. Related Tax Topics You Should Know
Understanding Form 121 is only one part of managing TDS and your overall tax position. These related topics can affect your estimated income, tax liability and the amount of TDS reported during the year.
From April 1, 2026, the Income-tax Act, 2025 applies. Older section numbers such as 80TTA, 80TTB and 44AD remain useful search terms, but the new Act consolidates and reorganises several of these provisions.
| Tax Topic | Why It Matters for Form 121 |
|---|---|
|
01
Interest Deduction
Section 153
Legacy Sections 80TTA / 80TTB
|
The new Act consolidates the earlier interest-deduction provisions for eligible individuals, senior citizens and HUFs. Where a deduction is actually available under your tax regime, it can affect estimated total income and therefore your Form 121 tax computation. |
|
02
Bank Interest TDS
TDS on FD & Deposit Interest
Legacy reference: Section 194A
|
Interest paid by banks and other specified institutions can attract TDS when the applicable conditions and thresholds are triggered. A valid Form 121 may allow eligible specified interest to be received without TDS. |
|
03
Tax Calculation
New Regime vs Old Regime
|
Your applicable tax regime affects deductions, exemptions and the final tax computation. Because Form 121 requires the relevant estimated tax condition to be satisfied, the regime used in your computation can materially change the result. |
|
04
Income Reporting
Annual Information Statement (AIS)
|
AIS can contain information reported by banks, companies and other reporting entities about interest, dividends and other financial transactions. Use it to reconcile your declared income and ensure the income used in your Form 121 estimation is complete. |
|
05
TDS Records
Form 26AS
|
Form 26AS helps you check tax deducted and reported against your PAN. If a payer deducted TDS despite your declaration, review the credit in your tax records before filing the return and claiming any eligible refund. |
|
06
Return Filing
ITR-1 / ITR-2 Filing
|
Form 121 does not replace an Income Tax Return. ITR filing requirements are determined separately based on your income and other applicable conditions. If excess TDS has already been deducted, the relevant TDS credit can be claimed while filing the appropriate return. |
|
07
Business Income
Section 58 — Presumptive Taxation
Legacy Sections 44AD / 44ADA / 44AE
|
The Income-tax Act, 2025 consolidates the earlier presumptive taxation schemes for eligible businesses, professionals and goods carriage businesses into Section 58. Business income must still be included when determining your complete estimated tax position for Form 121. |
|
08
Senior Citizens
Senior Citizen Savings Scheme (SCSS)
|
SCSS interest forms part of the senior citizen's income and can be relevant for TDS and estimated-tax calculations. Where the payment and taxpayer satisfy Form 121 conditions, the declaration may be relevant for avoiding TDS on eligible interest. |
Form 121 Depends on Your Complete Tax Picture
Interest, salary, pension, rent, business income and investments
Regime, deductions, rebates and other applicable provisions
Determine estimated total income and final estimated liability
Apply taxpayer and payment-specific eligibility conditions
Do not estimate income only from one bank statement. Review all relevant interest, dividend and TDS information available to you so that the figures used in Form 121 are reasonable and complete.
Common Old Section Names vs New Act
These topics influence different parts of your tax computation. Form 121 should be used only after your complete estimated income and tax position for the relevant tax year have been checked.
17. Expert Tip: Tax Planning Calendar for Form 121 Users
A simple year-round review can help you keep your Form 121 declaration aligned with your actual income and estimated tax position.
Don't treat Form 121 as a one-time April activity. Estimate carefully at the beginning of the year and review your position whenever income materially changes.
Estimate Income & Check Form 121 Eligibility
Estimate your expected income for the complete tax year, including interest, salary, pension, rent, dividends, business income and other relevant receipts.
Calculate estimated tax after considering provisions genuinely available to you and confirm that the Form 121 conditions are satisfied.
Furnish Form 121 to each relevant payer before the first payment or credit on which TDS could arise.
Monitor Income, TDS & New Investments
Compare actual income received with your original estimate. Watch for new fixed deposits, bonuses, dividends, rent, additional pension receipts or other income sources.
Review available AIS, Form 26AS, bank statements and your own records to identify any unexpected TDS or additional income.
Don't assume your April estimate will remain correct if your income changes during the year.
Recalculate Your Estimated Tax Position
Rework your expected total income and tax liability using the latest figures rather than continuing with the estimate made at the beginning of the year.
If you no longer satisfy Form 121 conditions, contact the relevant payer promptly and clarify how future payments and TDS should be handled.
If advance tax becomes payable, review the applicable instalment requirements rather than waiting until return filing.
Finalise Your Annual Tax Computation
Reconcile actual interest, pension, salary, investment and other income earned during the year with your original Form 121 estimates.
Review any deductions, exemptions or qualifying investments available under your applicable tax regime and determine your expected final tax liability.
Check whether any TDS was deducted despite your declaration so it can be reconciled when preparing your return.
Close the Tax Year & Prepare for the Next One
March 31 marks the end of the tax year, but it is not a universal Form 121 submission deadline. Form 121 timing is connected to the relevant payment or credit on which TDS would otherwise arise.
Preserve your declarations, UINs, acknowledgements and tax calculations, then prepare a fresh estimate for the next tax year.
For the next tax year, reassess eligibility before submitting a fresh Form 121 to relevant payers.
Don't Wait for the Next Calendar Checkpoint
The practical objective is to furnish the declaration before the relevant income is credited or paid so that the payer can process it before deducting tax. Filing near the beginning of the tax year is useful where recurring payments are expected.
Essential Tax Forms & Resources
Explore useful income-tax forms, TDS/TCS certificates, returns and other documents to understand your tax filing and compliance requirements.
TDS & TCS Certificates
Returns & Statements
Applications & Notices
Important: Different tax forms serve different purposes. Form 121 is used for eligible non-deduction declarations, whereas Form 144 concerns specified TDS reporting on non-resident payments. Always confirm the relevant tax year, eligibility and filing instructions through the official Income Tax Department portal.