Effective April 1, 2026, under the New Income Tax Act, 2025, the separate Forms 15G and 15H are being replaced by a single, unified Form 121.
The Key Change: Transition to Form 121
The primary change is the consolidation of age-specific forms into one age-neutral declaration.
Abolition of 15G/15H: Starting in the financial year 2026-27, Forms 15G (for those under 60) and 15H (for Older citizens) will no longer be applicable.
Introduction of Form 121: This new form serves all resident individuals, HUFs, and specified entities regardless of their age.
Simplified Reporting: Form 121 removes technical section references and redundant columns, instead using simpler language and pre-filled data to reduce administrative errors.
Comparison: Old vs. New Framework
Feature | Old (Form 15G/15H)
New (Form 121) |
Applicability | 15G (Under 60); 15H (60+) |
Unified for all ages
Legal Basis | Income Tax Act, 1961 | Income Tax Act, 2025 |
ID Requirement | PAN or Aadhaar | Only PAN is accepted |
ITR Details | Last 6 years required | Last 2 years only |
Submission | Separate to each bank/payer | Can be centralized via depositories (NSDL/CDSL) |
Eligibility and Submission Rules
The core intent of the declaration remains to prevent Tax Deducted at Source (TDS) when your final tax liability is zero.
* Nil Tax Liability: You can only file Form 121 if your estimated total income for the year results in zero tax after all deductions and rebates.
* Annual Submission: Like its predecessors, Form 121 must be submitted fresh every financial year, ideally in April, to prevent any TDS from the start of the year.
* Non-Eligibility: Non-resident Indians (NRIs), companies, and partnership firms remain ineligible for this self-declaration.
* Penalty for Falsehood: Providing a false declaration to avoid tax continues to be a criminal offence, potentially leading to imprisonment (3 months to 7 years) and a fine.
Centralized Submission Process
A significant procedural update allows investors to submit these declarations through depositories like NSDL or CDSL. Instead of reaching out to every bank or mutual fund house individually, the depository will disseminate your Form 121 to all relevant companies where you hold securities, drastically reducing paperwork.
Would you like a step-by-step guide on how to fill out the new Form 121 online?
