{"id":9972,"date":"2026-04-09T12:10:35","date_gmt":"2026-04-09T12:10:35","guid":{"rendered":"https:\/\/www.biddeasy.com\/blog\/?p=9972"},"modified":"2026-04-09T13:09:44","modified_gmt":"2026-04-09T13:09:44","slug":"form-121-what-investors-need-to-know","status":"publish","type":"post","link":"https:\/\/www.biddeasy.com\/blog\/form-121-what-investors-need-to-know\/","title":{"rendered":"Form 121: What Investors Need to Know"},"content":{"rendered":"

Every April, millions of FD holders and bond investors walk into their bank branch or log into net banking to do one thing: submit a declaration saying their tax liability is zero and ask the bank not to deduct TDS on their interest income.<\/span><\/p>\n

For years that meant picking up either Form 15G or Form 15H. From this financial year, both are gone. They’ve been replaced by a single form \u2014 Form 121 \u2014 under the new Income Tax Act, 2025.<\/span><\/p>\n

The core purpose hasn’t changed at all. But there are some procedural shifts worth knowing, especially if you hold FDs across multiple banks or invest in bonds.<\/span><\/p>\n

Why were the old forms replaced?<\/b><\/h2>\n

The two-form system was unnecessarily confusing. Your eligibility depended on whether you were above or below 60, but the conditions attached to each form were different in a subtle way.<\/span><\/p>\n

Form 15G, meant for those below 60, required that your total income including the interest you were protecting shouldn’t exceed the basic exemption limit. Form 15H for senior citizens had no such income cap \u2014 it only required that your final tax liability be nil.<\/span><\/p>\n

That difference caused genuine confusion in practice. The Income Tax Department’s own documentation acknowledges that taxpayers often weren’t sure which form to file. The merged Form 121 removes that problem entirely.<\/span><\/p>\n

What is Form 121?<\/b><\/h2>\n

Form 121 is a self-declaration you submit to your bank, bond issuer, or any other payer before they pay you income. You’re declaring that your estimated total tax for the year will be nil, so TDS should not be deducted.<\/span><\/p>\n

It replaces Form 15G and Form 15H for all tax years starting 1 April 2026. The legal basis has shifted from Section 197A of the old Income Tax Act, 1961 to Section 393(6) of the Income Tax Act, 2025, but the purpose is identical.<\/span><\/p>\n

One important thing to be clear about: Form 121 does not make your income tax-free. It only prevents the bank from deducting TDS at source. If your income ends up being taxable, you owe the tax when you file your ITR.<\/span><\/p>\n

Who can use it?<\/b><\/h2>\n

Eligible filers:<\/span><\/p>\n