India Scraps Forms 15G and 15H: New Unified Form 121 to Simplify Tax Declarations
From April 2026, taxpayers will use a single self-declaration form to avoid unnecessary TDS deductions.
Form 121 replaces age-based distinctions, making compliance easier for individuals and institutions.
By Legal Reporter
New Delhi: February 28, 2026:
In a major reform aimed at simplifying tax compliance, the Government of India has announced that Forms 15G and 15H will be scrapped from April 1, 2026. These forms, long used by taxpayers to declare that their income falls below the taxable threshold and to request non-deduction of tax at source (TDS), will now be replaced by a single, unified Form 121. This change eliminates age-based distinctions and streamlines the process for millions of taxpayers across the country.
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Background: What Were Forms 15G and 15H?
- Form 15G: Used by individuals below 60 years of age and Hindu Undivided Families (HUFs) to declare that their income is below the taxable limit.
- Form 15H: Specifically for senior citizens (60 years and above) to make the same declaration.
- Purpose: Both forms allowed taxpayers to avoid TDS on incomes such as fixed deposit interest, recurring deposit interest, dividends, and certain provident fund withdrawals.
While effective, the dual-form system often created confusion, especially for those transitioning into senior citizen status or for institutions processing large volumes of declarations.
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Why Form 121 Was Introduced
The government’s rationale for introducing Form 121 is rooted in simplification and modernization:
- Unified Declaration: Removes the need to distinguish between age groups.
- Ease of Compliance: Taxpayers only need one form regardless of age or category.
- Digital Push: Aligns with India’s broader move toward digitized tax filing and streamlined processes.
- Clarity for Institutions: Banks and financial institutions will now process a single format, reducing administrative errors.
Key Features of Form 121
- Self-Declaration: Taxpayers confirm that their total estimated income for the year is below the basic exemption limit.
- Nil Tax Liability: Declaration ensures that no TDS is deducted since the final tax liability is expected to be zero.
- Applicable to All Individuals: Whether young professionals, retirees, or senior citizens, the same form applies.
- Digital Filing Encouraged: The Income Tax Department is expected to integrate Form 121 into its online systems for easier submission.
Impact on Taxpayers
- Simplified Process: No more confusion about which form to use.
- Reduced Errors: Banks and deductors will have a single format to process.
- Senior Citizens Benefit: They no longer need a separate form, making compliance smoother.
- Young Earners: Students and first-time job holders with incomes below the threshold will find the process easier.
Impact on Institutions
- Banks and NBFCs: Streamlined paperwork and reduced administrative burden.
- Mutual Funds and Companies: Easier compliance when handling dividend payouts.
- Provident Fund Authorities: Simplified declarations for withdrawals.
Expert Views
Tax experts have welcomed the move, calling it a “long overdue simplification.” According to financial analysts, the shift to Form 121 will reduce taxpayer anxiety and improve efficiency in the financial system. However, they caution that awareness campaigns will be crucial to ensure smooth adoption, especially among senior citizens who may not be familiar with digital filing.
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Practical Guidance for Taxpayers
- Check Eligibility: Ensure your income is below the taxable threshold before filing Form 121.
- Submit Early: File the form at the start of the financial year to avoid TDS deductions.
- Use Digital Platforms: The Income Tax Department’s online portal will likely be the easiest way to file.
- Keep Records: Maintain copies of the submitted form for future reference.
Broader Context
This reform is part of India’s ongoing efforts to simplify tax compliance and encourage voluntary participation in the tax system. Alongside revised tax slabs and digitization initiatives, Form 121 represents a step toward a more transparent and taxpayer-friendly regime.
Conclusion
The scrapping of Forms 15G and 15H and the introduction of Form 121 marks a significant milestone in India’s tax administration. By removing age-based distinctions and streamlining compliance, the government has taken a decisive step toward making taxation simpler, fairer, and more efficient. For taxpayers, this means less confusion and more clarity; for institutions, it means smoother operations. As India continues its digital transformation, Form 121 is poised to become a cornerstone of simplified tax compliance.
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