New Form 121 Replaces 15H and 15G for TDS Exemption

Effective from April 1, 2026, senior citizens and other individuals seeking to avoid Tax Deducted at Source (TDS) on income below the taxable threshold will benefit from the introduction of Form 121. This new form replaces both Form 15H and Form 15G, creating a unified and simplified declaration system for all taxpayers, irrespective of age.

Streamlining Declarations for Taxpayers

Previously, senior citizens relied on Form 15H, while other eligible individuals used Form 15G, to declare that their income was below the taxable limit, thereby preventing TDS on interest income and other sources. The consolidation into a single Form 121 is a key reform aimed at reducing compliance complexities and enhancing user experience under the new Income Tax Act, 2025.

How Form 121 Benefits Senior Citizens

The introduction of Form 121 is particularly beneficial for senior citizens, as it streamlines the process of ensuring that TDS is not deducted unnecessarily from their incomes, especially interest from fixed deposits and other investments, when their total taxable income falls below the prescribed limits. This simplification is part of broader efforts to make tax compliance more accessible and less cumbersome.