What is new Form 121 for tax filing
What's the story
In a bid to simplify the tax filing process, the government has introduced a new combined form, Form No. 121. The new form replaces the previously used Forms 15G and 15H under the Income Tax Rules, 2026. The revised document is aimed at individuals and senior citizens with income below taxable limits. It allows eligible taxpayers to avoid tax deduction at source on interest income using this single form.
Tax exemption
Understanding Form 121
Form 121 serves as a self-declaration form for individuals to ensure no TDS is deducted on specified incomes like bank interest, post office deposits. This is applicable when their total income falls below the taxable limit. The declaration is made under Section 393(6) of the Income-tax Act, 2025, read with Rule 211 of the Income Tax Rules, 2026.
Filing requirements
Who can file it?
Form 121 needs to be filed by individuals (below or above 60 years), Hindu Undivided Families (HUFs), and other specified eligible entities meeting the criteria. However, companies and firms are not eligible to file this form. Non-residents also do not qualify for filing Form 121. The new document simplifies the process of declaring income below taxable limits for these groups.
Documentation
Documents required to file the form
To file Form 121, taxpayers need to provide a few documents/details. These include the PAN of the declarant (mandatory), TAN of the payer, proof of age, details of income/investment for which no TDS is to be deducted and bank account details (for interest-bearing instruments). The new form aims at streamlining reporting and reducing administrative complexity by combining Forms 15G and 15H into one.
Improvements
Key features of the new form
Form 121 comes with structural changes, including removal of redundant columns. Explanatory remarks have been added to guide users in filling out the form correctly. The revised document also offers an improved user experience with features like auto-population and real-time validations. It integrates APIs and databases for seamless filing, making it a smart choice for taxpayers looking to simplify their tax declaration process.