Form 15G and 15H in 2026: What Changed with Form 121?
For years, Indian depositors knew a familiar routine: younger eligible residents submitted Form 15G, senior citizens used Form 15H, and the bank considered the declaration before deducting tax from eligible interest payments. From tax year 2026–27, the form name and reporting structure have changed.
The Income Tax Department says that for a tax year beginning on or after 1 April 2026, the declaration must be furnished in unified Form 121 under the Income Tax Rules, 2026. The earlier eligibility distinction has not disappeared; the department says the substantive eligibility criteria continue under the new framework. What changed most visibly is that two familiar forms are now merged into one declaration and the reporting process uses a consolidated identification system.
This guide explains the change for fixed-deposit holders, salaried families and senior citizens. It also explains the most important point: a nil-TDS declaration does not make interest tax-free. You must estimate total income and tax honestly before submitting it.
Form 121 changes the declaration format, but eligibility still depends on the taxpayer's full-year income and estimated tax position.
Table of contents
The 2026 change in one minute
Before April 2026
Eligible non-senior residents generally used Form 15G, while eligible resident senior citizens used Form 15H.
From April 2026
The Income Tax Department says declarations for tax year 2026–27 use unified Form 121.
What did not change
The declaration is only for a person whose estimated total tax liability for the tax year is nil and who meets the applicable eligibility conditions.
Under the earlier Income Tax Act, 1961 framework, Forms 15G and 15H operated under section 197A. Under the Income Tax Act, 2025, the department identifies section 393(6) as the corresponding provision. It permits a recipient of income to furnish a written declaration that tax on estimated total income for the tax year will be nil.
Form 15G, Form 15H and Form 121 compared
| Feature | Earlier Form 15G | Earlier Form 15H | Form 121 from 2026–27 |
|---|---|---|---|
| Typical user | Eligible resident below 60 or other eligible person excluding company or firm | Eligible resident individual aged 60 or more | Unified form covering the continuing eligible categories |
| Main purpose | Request non-deduction of TDS on specified income | Same purpose for eligible seniors | Same core nil-TDS declaration under the 2026 framework |
| Core tax condition | Estimated tax liability must be nil, plus applicable threshold conditions | Estimated tax liability must be nil | Estimated total tax liability for the tax year must be nil |
| Identification | Separate UINs could arise for declarations received by different payers | Same earlier reporting structure | Department says one UIN per PAN for a tax year links declarations across payers |
| Applicable period | Old statutory framework | Old statutory framework | Tax year beginning on or after 1 April 2026 |
The unified form reduces confusion about choosing between two form numbers, but it does not create automatic eligibility. Your age, residence, taxpayer type, estimated income and tax calculation remain important. A bank accepting the declaration does not certify that your tax estimate is correct; the declaration is your responsibility.
Who may be eligible to furnish the declaration?
The department's transition guidance says the earlier eligibility criteria continue. The Form 15G category covered a resident individual below 60 and certain other eligible persons, excluding companies and firms, subject to prescribed income thresholds. The Form 15H category covered a resident individual aged 60 or more. Both are now addressed through unified Form 121 for tax year 2026–27.
Younger resident depositor
Check resident status, age, the applicable income condition and whether the estimated tax on total income is nil. Do not look only at one fixed deposit.
Resident senior citizen
Age 60 or more may place the individual in the former Form 15H category, but the estimated total tax liability must still be nil.
Non-resident depositor
The resident declaration should not be used merely to stop TDS on NRO or other non-resident income. Check the specific non-resident rules.
Company or firm
The department says the earlier Form 15G eligibility excluded companies and firms; the new form does not turn them into eligible declarants.
Estimate all relevant income for the tax year: salary or pension, interest from every bank, post-office income, rent, taxable investment income and other receipts. Then apply the current tax rules, deductions, rebate conditions and regime choice relevant to you. If the calculation is uncertain, ask a qualified tax professional to review it.
TDS threshold and final tax are not the same
A TDS threshold tells a payer when deduction may be required under the applicable provision. It does not decide whether the income itself is taxable. From 1 April 2025, the section 194A threshold for interest paid by a bank, co-operative bank or notified post-office deposit was increased to ₹50,000 for others and ₹1,00,000 for senior citizens under the 1961 Act framework. Rules and section references under the new Act should be checked for the relevant 2026–27 payment.
Suppose a depositor earns ₹42,000 bank interest. The payer may not deduct TDS because the amount is below the applicable bank threshold, yet the interest remains part of the depositor's income calculation. Conversely, interest may cross a deduction threshold while the person's estimated total tax is still nil, which is where an eligible declaration may matter.
Use the fixed deposit calculator to estimate maturity and interest, then combine interest from all deposits rather than checking each FD in isolation. The guide on interest from ₹1 lakh, ₹5 lakh and ₹10 lakh FDs can help you understand how deposit size and tenure affect expected interest.
Give the declaration to the payer through its official process and keep an acknowledgement or service reference.
How the Form 121 process works in practice
The Income Tax Department's user manual separates the taxpayer's declaration from the deductor's portal filing. The declarant furnishes a complete and valid declaration to the deductor. The deductor—such as a bank—uses its TAN login to report Form 121 on the e-Filing portal.
- Estimate the full year's income. Include all expected interest and other taxable sources, not only the amount held with one bank.
- Calculate estimated tax. Confirm that the result is nil under the rules applicable to the tax year and that you meet the relevant category conditions.
- Use the payer's official channel. A bank may provide online, branch or another approved submission route. Confirm that it is accepting the declaration for tax year 2026–27.
- Provide accurate details. Check PAN, taxpayer type, date of birth, tax year, estimated income and the amount covered by the declaration.
- Submit early. The official manual says ideally before income is credited or paid and preferably at the beginning of the tax year.
- Keep proof. Save the acknowledgement, reference number, screenshot or branch receipt and monitor later interest entries.
The official manual says the deductor files Form 121 by the seventh of the month following the quarter. It also describes a consolidated UIN arrangement linked to the taxpayer's PAN for the tax year. These reporting steps belong mainly to the payer; the depositor should focus on giving a correct declaration and retaining proof.
Four practical examples
Example 1: Salaried employee with taxable total income
Anita expects ₹8.4 lakh salary and ₹36,000 FD interest. Even if the bank interest is below a payer's TDS threshold, she cannot assume a nil-TDS declaration is appropriate. Her total tax position includes salary and interest. She should calculate tax under the applicable regime rather than submitting Form 121 simply because the FD is small.
Example 2: Retired resident with nil estimated tax
Mr Iyer, age 68, expects pension and bank interest. After considering the rules applicable to tax year 2026–27, his estimated total tax liability is nil. He may fall within the senior resident category that previously used Form 15H and can ask his bank about the Form 121 declaration process. He keeps the acknowledgement and still includes taxable interest in his records.
Example 3: Interest spread across three banks
Ravi has deposits at three banks. Each bank sees only the interest it pays, but Ravi must estimate total income across all three. The department's consolidated UIN helps reporting, yet it does not perform his tax calculation for him. He adds every expected interest certificate before deciding whether he is eligible.
Example 4: TDS already deducted before submission
Kamala submits her declaration after the first interest credit and sees TDS in her account. The declaration does not automatically erase that deduction. She checks AIS and Form 26AS, asks the bank to confirm its reporting, and claims eligible tax credit through the return process. If excess tax results, she follows the normal refund process explained in the income tax refund guide.
Common mistakes to avoid
Using the old form without checking the tax year: for a tax year beginning on or after 1 April 2026, official guidance points to Form 121.
Looking only at FD interest: eligibility depends on estimated total income and tax, including salary, pension and other sources.
Assuming “no TDS” means “no tax”: TDS is a collection method. The underlying interest can remain taxable.
Submitting as an NRI: the declaration is described for resident categories. Do not use a resident form to change non-resident withholding.
Submitting after interest is credited: the official manual recommends giving the declaration before credit or payment, preferably near the start of the tax year.
Forgetting other banks: combine interest from all fixed deposits, savings accounts and applicable post-office deposits when estimating income.
Giving false estimated figures: a self-declaration carries responsibility. Use realistic full-year numbers and update your planning when income changes materially.
Before-you-submit checklist
- Confirm the declaration is for tax year 2026–27 or later.
- Check resident status and the eligible taxpayer category.
- Add salary, pension, bank interest and other expected income.
- Confirm estimated total tax liability is nil under current rules.
- Use the bank or payer's official Form 121 submission process.
- Review PAN, date of birth, income and tax-year details carefully.
- Submit before the first relevant credit where possible.
- Keep acknowledgement and review AIS, Form 26AS and interest certificates later.
For broader planning, explore the Tax & Salary hub, compare deposit options through the fixed deposit investment guide, and learn how salary CTC differs from take-home pay. These resources help organise the calculation but do not replace a personalised tax review.
Frequently asked questions
Are Form 15G and Form 15H still used in tax year 2026–27?
The Income Tax Department says declarations for a tax year beginning on or after 1 April 2026 are furnished in unified Form 121.
What is Form 121?
It is the statutory declaration under the 2026 rules through which an eligible taxpayer declares that tax liability on estimated total income for the tax year is nil.
Who replaces the earlier Form 15G user?
The continuing category includes a resident individual below 60 and other eligible persons excluding companies and firms, subject to prescribed conditions.
Who replaces the earlier Form 15H user?
A resident individual aged 60 or more remains the senior category, provided the nil estimated tax condition is met.
Does Form 121 make FD interest tax-free?
No. It concerns TDS deduction. Taxable interest must still be included correctly in total income and the return, where applicable.
Do I file Form 121 directly on the portal?
The taxpayer gives the declaration to the payer. The official manual describes portal reporting by the deductor using its TAN account.
When should I submit it?
Official guidance says ideally before the income is credited or paid and preferably at the start of the tax year.
Can an NRI use Form 121 for NRO interest?
The eligibility guidance is for residents. An NRI should check the non-resident withholding rules instead of using a resident declaration.
What if TDS was already deducted?
Check AIS and Form 26AS, confirm the payer's reporting and claim eligible credit through the applicable return. The declaration does not automatically reverse an earlier deduction.
Conclusion
Form 121 simplifies the name and reporting structure of the familiar Form 15G and Form 15H declarations from tax year 2026–27. The central test remains serious: the declaration is for an eligible taxpayer whose estimated total tax liability for the year is nil.
Do not decide based only on your age or one bank's interest. Add every income source, use current tax rules, submit through the payer's official process and keep proof. When income includes multiple deposits, capital gains, rental income or uncertain deductions, consider professional tax help before declaring nil liability.
Official references: Income Tax Department forms transition guidance, Form 121 user manual, and Finance Bill 2025 memorandum on interest TDS thresholds. Tax rules and portal steps can change; verify the current position before submitting.
Educational disclaimer: This article provides general educational information and is not personalised tax, financial or legal advice.