Reviewed through: 12 August 2026

Finin2min Summary

  • For a tax year beginning on or after 1 April 2026, the no-deduction declaration corresponding to Forms 15G and 15H is Form 121.
  • The legal basis is section 393(6) of the Income-tax Act, 2025. The Income Tax Department says the underlying eligibility criteria continue from the earlier framework.
  • Form 121 is a declaration for non-deduction, not an exemption from income tax. The declarant's estimated tax on total income must be nil and all statutory conditions must be satisfied.
  • The new framework removes the need to choose a separate “15G” or “15H” format; the unified form captures the relevant taxpayer attributes.
  • The Department's FAQ states that a single UIN is allotted for each PAN for a tax year, linking declarations furnished to different payers.
  • A payer should validate the declaration and UIN through the prescribed portal process; it should not suppress TDS solely because a customer clicked “Form 15G” in an old UI.

The Two-Minute Answer

Form 121 modernises the familiar 15G/15H process. It does not broaden who is allowed to avoid withholding.

The decision sequence is:

Is the recipient eligible? → Is estimated tax on total income nil? → Are the prescribed income/age/entity conditions satisfied? → Is Form 121 properly furnished for the tax year? → Can the payer validate the UIN/declaration?

If any of those steps fail, ordinary withholding rules continue to apply.

What Changed From Forms 15G and 15H?

Under the 1961 Act:

  • Form 15G was used by eligible resident individuals below 60 and certain other eligible persons, subject to statutory conditions.
  • Form 15H was used by eligible resident individuals aged 60 or more.

Under the 2025 Act, the declaration is consolidated into Form 121. The Department's FAQ says the eligibility criteria continue; the main simplification is the single form and consolidated UIN framework.

Eligibility: Do Not Reduce It to Age

Age determines one part of the old 15G/15H distinction, but Form 121 eligibility still depends on the statutory conditions.

Before accepting a declaration, test:

  • residence;
  • person/entity type;
  • age where relevant;
  • nature of income;
  • estimated total income;
  • estimated tax on total income;
  • prescribed income ceiling/conditions, where applicable;
  • tax year;
  • PAN/UIN/portal validation.

Do not publish a single threshold number as if it applies to every declarant and every income stream. The current Form 121 instructions and section 393(6) should control.

Nil Tax Is Not the Same as “Income Below TDS Threshold”

A payer's TDS threshold and the declarant's final tax liability are different concepts.

Example: a bank's interest may cross a withholding threshold, yet an eligible taxpayer can have nil estimated final tax after the complete annual computation and therefore may qualify to furnish Form 121—provided all statutory conditions are met.

The reverse can also happen: an individual may be below one payer's threshold but have substantial income elsewhere. A declaration should reflect estimated total income, not only income from that payer.

The Single-UIN Change

The Income Tax Department explains a significant operational improvement: instead of each payer generating a separate identification number for each declaration, the revised system provides a single UIN for the PAN and tax year, and declarations to different payers are linked to that UIN.

That means finance and banking systems should redesign their master data around:

  • PAN;
  • tax year;
  • department-issued UIN;
  • declaration date;
  • payer linkage;
  • validation status;
  • income type/amount;
  • cancellation/revision trail, if supported.

Do not manufacture a payer-local UIN that conflicts with the Department's consolidated identifier.

Payer Workflow

1. Receive declaration

Capture Form 121 in the prescribed mode.

2. Validate identity

Check PAN and the Department's UIN/portal record as enabled.

3. Test payer-level completeness

Ensure the declaration covers the relevant tax year and income stream.

4. Apply non-deduction only prospectively as permitted

A late declaration does not automatically reverse tax already correctly deducted. Any refund/credit follows the tax-return system.

5. Preserve evidence

Retain declaration, validation result and payer reporting trail.

6. Reconcile at year end

Ensure amounts paid/credited match the declaration and any reporting obligation.

Individual Workflow

Do not furnish Form 121 merely to improve cash flow. Prepare an estimated annual tax computation first.

Include:

  • salary/pension;
  • bank interest;
  • dividends;
  • capital gains;
  • rental income;
  • business/professional income;
  • other taxable receipts;
  • deductions/reliefs allowed for the selected regime;
  • tax already deducted/collected;
  • advance tax implications.

If estimated tax is not nil, a no-deduction declaration is not the right route. A lower/nil withholding certificate may be a different statutory mechanism in appropriate cases.

Worked Example

A resident senior citizen receives interest from two banks. The customer expects total tax for Tax Year 2026–27 to be nil after considering all income and applicable relief.

The correct process is not to submit “15H” twice using an old PDF. The customer should use the current Form 121 framework, obtain/use the Department's UIN, provide the declaration to each payer as prescribed, and retain the annual tax estimate supporting eligibility.

If later income changes and estimated tax becomes payable, the taxpayer should reassess advance-tax and return obligations rather than assume the earlier declaration permanently eliminates tax.

Common Errors

  • Treating Form 121 as an income exemption.
  • Filing it without estimating total annual tax.
  • Using old Form 15G/15H for Tax Year 2026–27 merely because a bank still displays the old label.
  • Confusing no-deduction declaration with lower/nil certificate procedure.
  • Assuming one bank's interest is the taxpayer's total income.
  • Payer creating its own duplicate UIN despite the new Department framework.
  • Failing to preserve the declaration and validation trail.
  • Ignoring changes in income during the year.

Practical Checklist for Taxpayers

  • [ ] Tax Year 2026–27 confirmed.
  • [ ] Residency and person-type eligibility checked.
  • [ ] Age condition checked where relevant.
  • [ ] Full-year total income estimated.
  • [ ] Estimated tax is nil.
  • [ ] Prescribed income conditions checked.
  • [ ] Current Form 121 furnished.
  • [ ] UIN recorded.
  • [ ] Copies/acknowledgements retained.
  • [ ] Income estimate refreshed if circumstances change.

Article-Specific Q&A

Is Form 15G valid for Tax Year 2026–27?

The Department says declarations for a tax year beginning on or after 1 April 2026 must be furnished in Form 121.

Does Form 121 mean anyone with low bank interest can stop TDS?

No. Eligibility under section 393(6) and the prescribed conditions must be satisfied.

Is there still a 15H form for senior citizens?

The revised framework uses one Form 121. Age remains relevant to eligibility conditions but not to selecting a separate form number.

Can I submit Form 121 to multiple banks?

The framework supports declarations to different payers linked to a single Department UIN for the PAN and tax year.

What if tax was already deducted?

Form 121 does not automatically reverse correctly deducted tax. Credit/refund is handled through the tax system, subject to law.

Is Form 121 the same as a lower-deduction certificate?

No. A lower/nil withholding certificate is a separate application/certificate route.

Official Sources

Relevant Finin2min Links

Finin2min Review Trigger

Refresh when CBDT publishes revised Form 121 instructions, payer reporting mechanics, UIN procedures or changes to section 393(6).

Disclaimer

This guide explains the general Form 121 framework. A taxpayer should not furnish a no-deduction declaration unless the statutory eligibility conditions are actually satisfied based on estimated total income and tax for the relevant tax year.