6 things to know about Form 121: Who can file it, documents needed and how it works

Form No. 121 is the new combined form that replaces the earlier Forms 15G and 15H. It is a self-declaration fForm furnished by individuals to ensure no deduction of tax at source (TDS) on specified incomes such as interest on bank deposits, post office deposits, or other specified incomes, when their total income is below the taxable limit. These declarations are made under Section 393(6) of the Income-tax Act, 2025, read with Rule 211 of the Income-tax Rules, 2026.

Form 121 can be filed by resident individuals, senior citizens, Hindu Undivided Families (HUFs), and certain eligible entities whose tax liability is expected to be zero. Companies and fFirms are not eligible to file Form 121. Non-residents are also not eligible to file this form.

Form 121 should be submitted before income is credited or paid, such as at the beginning of the tax year or before receiving the first interest payment. The form is usually given to the bank, financial institution, or payer. Many banks now allow online submission through internet or mobile banking, making the process faster and easier.

To complete Form 121, persons must provide personal and financial information, such as the declarant's PAN (required), the payer's TAN, proof of age, and details of income/investment for which no TDS is to be deducted. Bank account information (for interest-bearing products). The tax yYear, , estimated total income, details of the income for which the declaration is being filed, etc.

Once the form is submitted, the bank or payer verifies the details and assigns a Unique Identification Number (UIN) to each declaration. The payer then reports these details to the Income-tax Department on a monthly basis and includes the UIN in quarterly TDS returns. This ensures proper tracking and compliance.

The revised Form No. 121 will be a smart one to enhance user experience and providing ease of filing through
a. Auto-population/pre-filling of relevant details using information available from the profile.
b. Real time validations and error handling
c. Drop downs & date pickers
d. Integration with APIs & Databases
e. Check box based smart verification
f. Standardisation of name & address fields, etc.