Income Tax Rules 2026: What is Form 121? Big TDS Changes for Senior Citizens, No More Form 15H, 15G- How to Fill Form 121 Through e-Filing Portal

Income Tax Rules 2026: From April 1, 2026, banking and tax processes have become much simpler for crores of senior citizens and pensioners across the country. The central government has introduced the new Income Tax Act 2025, bringing several changes. 

One of the most important updates is the introduction of Form 121, which will replace Forms 15H and 15G  for TDS-related declarations. This means senior citizens will now have a new process to manage their tax deductions.

What Is Form 121? 

Form 121, introduced under the Income Tax Act, 2025 is a self-declaration form. It informs a bank of financial institution that your annual income is below the tax exemption limit which will prevent TDS from being deducted on your interest or other earnings. 

This form is very beneficial for senior citizens as a large portion of their income comes from fixed deposits (FDs) and savings schemes. 

What is PAN Status in Form 121? 

To improve transparency, the government has made some stricter rules for Form 121. Now, it is compulsory to provide your PAN while filling out the form. If you submit it without a PAN, it will be treated as invalid, and banks may deduct TDS at a higher rate. 

Also, every form will get a Unique Identification Number (UIN) which is a special 26-digit code generated by the bank or payer. This number will be shared directly with the Income Tax Department making it harder to avoid taxes. 

The government will also keep a close check on transactions. Banks will need to fill Part B of the form and include this information in their regular TDS report.

How to Fill Form 121 Through e-Filing Portal? 

Go to the official income tax e-filing website. 

Enter your PAN (user ID), password, and captcha to log in. 

Click on the ‘e-file’ tab and select the option for Form 121.

Choose the correct financial/assessment year.

Enter your personal details, PAN, income details, and declaration information carefully. 

Double-check all the details to avoid errors.

Click on submit after verifying everything.

Complete the process using OTP, Aadhaar, or net banking.