Form 121 Replaces 15G & 15H — What You Must Know
The new Income-Tax Act 2025 has replaced the old Form 15G and Form 15H with a single unified form called Form 121. If your income is below the taxable limit, this form helps you tell your bank or employer not to deduct TDS on your interest or other income. Here's who qualifies, how to use it, and why it matters for your savings.
A senior citizen with ₹5 lakh in fixed deposits earning around ₹40,000 in annual interest could lose nearly ₹4,000 to TDS every year — just by not submitting the right form on time. That's enough to cover a month's electricity bill.
By submitting Form 121 on time, you can prevent your bank from cutting TDS on your FD or savings interest — keeping that money directly in your pocket instead of waiting months for a tax refund.
Key Takeaways
Submit Form 121 at the start of every financial year (April) to your bank, post office, or employer — don't wait until TDS is already deducted, because getting a refund means waiting for your ITR to be processed.
Check your eligibility before filing: your estimated total income for the year must fall below the basic exemption limit (₹2.5 lakh for general taxpayers, ₹3 lakh for senior citizens, ₹5 lakh for super senior citizens aged 80+).
Download Form 121 from the official Income Tax Department portal at incometax.gov.in — submit it to every institution that pays you interest or income, including multiple banks and your employer if applicable.
If you have a fixed deposit, a recurring deposit, or even a high-balance savings account, your bank is required by law to deduct Tax Deducted at Source (TDS) on the interest you earn — unless you tell them not to. That's exactly what Form 15G and Form 15H used to do. And now, under the new Income-Tax Act 2025, both forms have been merged into a single, simplified document called Form 121.
The logic is straightforward. If your total income for the financial year is below the taxable threshold, you shouldn't have to pay any tax — and therefore, no TDS should be deducted in the first place. Form 121 is your official declaration to institutions like banks, post offices, and NBFCs that your income doesn't attract tax, so please don't cut it at source.
Who can use Form 121? Any individual whose estimated annual income falls below the basic exemption limit. For most salaried employees or retirees, this means income under ₹2.5 lakh (or ₹3 lakh for those aged 60 and above). Crucially, you must also ensure that the tax on your total income — after all deductions — works out to zero. If you're unsure whether you qualify, a quick check on GoCredit's financial planning tools can help you estimate your taxable income before you fill in any declarations.
The mistake most people make is submitting the form too late. Banks typically deduct TDS quarterly. If you miss April, you may have already lost money by June. Submitting Form 121 early ensures clean, uninterrupted interest income throughout the year.
Pro tip: Submit Form 121 separately to every bank or financial institution where you hold an interest-bearing account. One submission does not cover all your accounts — each institution needs its own copy, and you'll need to renew it every financial year.
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