Form 121 in 2026: New Form Replacing 15G/15H for TY 2026-27

Form 121 is the unified declaration that replaces Forms 15G and 15H for Tax Year 2026-27 under the Income-tax Act, 2025. The change applies for a tax year beginning on or after 1 April 2026—not from June 2025. It is prescribed under the Income-tax Rules, 2026 and corresponds to Section 393(6) of the Income-tax Act, 2025.

When did Form 121 become applicable?

For declarations relating to a tax year beginning on or after 1 April 2026, the declaration that was historically furnished through Form 15G or Form 15H is to be furnished in Form 121. Articles claiming that Form 121 started on 1 June 2025 confuse the new Act's later commencement with its earlier enactment/preparation period.

Form 15G/15H vs Form 121

Who can use Form 121?

The Income Tax Department's transition FAQ says the eligibility criteria continue to be the same in substance as the old Form 15G/15H framework. Under that framework, Form 15G was available to qualifying resident persons other than a company or firm, subject to statutory conditions, while Form 15H was for qualifying resident individuals aged 60 years or more. The current unified form removes the need to choose between two differently numbered forms, but it does not mean that every taxpayer with any type of income can automatically stop TDS.

Important: Do not use Form 121 as a blanket substitute for a lower/nil deduction certificate. Where a self-declaration is not legally available for the relevant payment or taxpayer, the current lower/nil withholding certificate route uses Form 128, subject to its conditions.

What does the declarant state?

According to the official Form 121 user manual, the taxpayer declares that the tax liability on estimated total income for the relevant tax year is nil. The declaration should be furnished to the deductor in time so tax is not deducted in the first place—ideally before the relevant income is credited or paid.

How the deductor files Form 121

1. The deductor logs into the e-Filing portal using TAN credentials.
2. Go to e-File → Income Tax Forms → File Income Tax Forms.
3. Select the Income-tax Act, 2025 category and Form 121.
4. Select filing type, tax year and quarter.
5. Complete payer details.
6. Upload declarant/declaration details in the prescribed CSV format.
7. Complete the declaration section, preview and e-verify.
8. Save the acknowledgement number and transaction ID.

Current filing timeline for deductors

The official Form 121 user manual states that filing by the deductor is due on the 7th of the month following the quarter. Taxpayers should submit their declaration to the payer early enough for the payer to process non-deduction correctly and complete its reporting obligation.

What changed in the UIN system?

Income Tax Department FAQs explain that the revised framework is designed to avoid multiple separate UINs for the same taxpayer across payers. The department describes a consolidated approach for a PAN for a given tax year, with declarations linked through the new framework. Deductors should follow the portal's current UIN instructions rather than carrying forward old 15G/15H spreadsheet logic without modification.

Example

A qualifying resident taxpayer expects nil tax liability for TY 2026-27 and receives income for which the statutory self-declaration route is available. Instead of choosing between old Form 15G and Form 15H, the taxpayer furnishes the prescribed Form 121 declaration to the deductor. The deductor then processes and reports the declaration through the current portal workflow.

Common mistakes

• Using Form 15G/15H for TY 2026-27 without checking the new Form 121 framework.
• Claiming Form 121 became effective in June 2025.
• Assuming Form 121 is available for every TDS section or every taxpayer.
• Confusing a self-declaration with Form 128 lower/nil withholding certificate.
• Submitting the declaration only after tax has already been deducted.
• Using outdated basic-exemption-limit tables as the only eligibility test.

Frequently asked questions

Official references

• Income Tax Department — Form 121
• Income Tax Department — Form 121 User Manual
• Income Tax Department — Income Tax Forms FAQs