Understanding Form 121: The New Way to Save Your Income from TDS
If you have ever had a bank deduct tax from your hard-earned fixed deposit interest, you probably know how frustrating it is to wait months for a tax refund. For years, taxpayers relied on Forms 15G and 15H to prevent these unnecessary deductions. However, under the Income-tax Act, 2025, the tax department has introduced a major update: Form No. 121.
This brand-new form completely replaces the old system, acting as a single, unified self-declaration.
The Big Change: Instead of figuring out whether you need Form 15G or 15H based on your age, everyone now uses Form 121.
Who Can File Form 121?
Under 60 Years (and HUFs/Trusts)
You qualify if your net tax liability is zero.
Senior Citizens (60+ Years)
You can submit Form 121 if your final tax liability is zero.
Incomes You Can Protect
- Fixed deposit and savings interest
- Dividends from domestic companies
- Mutual fund payouts
- EPF withdrawals
- Rental income and insurance commissions
Essential Ground Rules for Filing
- PAN must be active
- Submit early in the financial year
- Separate form for each bank or payer