If you earn interest from bonds, fixed deposits, or savings accounts, you’ve probably come across Forms 15G and 15H.
From FY 2026–27, those are no longer used.
The Central Board of Direct Taxes has introduced Form 121, a single form that replaces both.
At first, it might look like just another tax form.
But once you understand what it’s asking, it’s actually quite straightforward.
What is Form 121?
Form 121 is a self-declaration you give to the payer (bank, NBFC, or bond issuer).
It simply says:
“Based on my estimated income this year, my tax liability is expected to be NIL.”
If you’re eligible, this allows you to request non-deduction of TDS on certain income, like interest.
Who can use Form 121?
You may be eligible if:
- You are a Resident Individual or HUF
- Your estimated total tax liability is NIL (after deductions/rebate, if applicable)
Non-residents cannot use this form.
👉 Also important:
Form 121 does not reduce your tax. It only helps avoid upfront TDS, if applicable.
How is the form structured?
Form 121 has two parts:
- Part A → Filled by you
- Part B → Filled by the payer and reported to the tax department
As an investor, you only need to fill Part A.
Let’s fill Part A
Part A has two sections:
1. Your details
This is basic information:
- Name (as per PAN)
- PAN (mandatory)
- Address
- Email and mobile number
- Status (Individual/HUF)
- Residential status (Resident)
- Age (above or below 60)
- Tax year (2026–27)
Nothing complicated here—just make sure everything matches your records.
2. Your income details
This is the important part.
Nature of income
Usually: Interest income (FDs, bonds, etc.)
Income from this payer
Enter the income you expect from this specific issuer during the year.
Other Form 121 submissions
If you’ve already submitted Form 121 elsewhere:
- Mention how many times
- Mention the total income declared earlier
Total declared income
Add:
- Income from this payer
- Income declared in other forms
Estimated total income (key field)
This includes everything:
- Salary
- Interest (all sources)
- Rental income
- Any other income
👉 The key condition:
Your final tax liability should be NIL under the Income Tax Act 1961.
ITR details (last 2 years)
You’ll need:
- Tax year
- ITR acknowledgement number
- Taxable income
If not filed, mention “Not Applicable”.
Final step: Declaration
Before submitting, you confirm:
- The details are correct
- Your tax liability is expected to be NIL
- You understand the consequences of incorrect declaration
Then add:
- Place
- Date
- Signature
A quick example
Let’s say:
- Salary: ₹2.2 lakh
- Interest income: ₹40,000
Total income = ₹2.6 lakh
After rebate, tax liability = NIL
👉 In such a case, you are eligible to submit Form 121.
Things to keep in mind
- Submit Form 121 separately to each payer
- Acceptance is subject to verification by the payer
- Incorrect details may lead to TDS deduction or further action
One simple way to think about it
Form 121 doesn’t save tax.
It simply tells the payer:
“I don’t expect to owe tax this year, so TDS may not be required.”
Sources
- Central Board of Direct Taxes
- Income Tax Department of India
- Income Tax Act, 1961
