๐ Form 15G, 15H & New Form 121 Update 2026 – Complete Tax Guide
๐ Form 15G, 15H & New Form 121 Update 2026 – Complete Tax Guide
๐ฐ Introduction
The Indian income tax system is continuously evolving with digital reforms and simplification measures. As per proposed updates from April 2026, the Income Tax Act 2025 framework and Income Tax Rules 2026 may introduce significant changes in declaration forms related to TDS exemption.
One of the biggest changes is the replacement of Form 15G and Form 15H with a unified declaration form called Form 121.
๐ What is TDS on Interest Income?
Banks deduct TDS on interest income earned from Fixed Deposits when earnings exceed prescribed limits.
Regular taxpayers: ₹40,000 threshold
Senior citizens: higher threshold (up to ₹1,00,000 in many cases)
The deducted TDS is later claimed through Income Tax Return (ITR), which often results in delayed refunds.
๐ What is Form 15G?
Applicable to Resident Individuals and HUF
Age below 60 years
Can be used when total estimated income is below the basic exemption limit (approx. ₹4 lakh in proposed structure)
Purpose:
To ensure that no TDS is deducted on eligible interest income.
๐ What is Form 15H?
Applicable to Senior Citizens (60 years and above)
Used when estimated total income is within taxable exemption limits (up to ₹12 lakh in proposed structure)
Helps avoid TDS deduction on interest income
⚠️ Key Rules (Old System)
Must be filed every financial year
Should be submitted in April at the beginning of the financial year
False declaration may attract penalties and legal prosecution
๐ Introduction of Form 121 (Proposed Change)
From 1 April 2026, Form 15G and Form 15H are expected to be replaced by a single unified form:
๐ Form 121
Key Features:
Single declaration form for all taxpayers
Covers both senior and non-senior citizens
Simplifies compliance process
Reduces paperwork and duplication
Helps banks process TDS exemption faster
๐ Eligibility for Form 121
Non-Senior Citizens:
Estimated annual income up to ₹4 lakh
Senior Citizens:
Estimated annual income up to ₹12 lakh
๐ Types of Income Covered
Form 121 may apply to the following income sources:
Fixed Deposit Interest
Savings Account Interest
Dividend Income
Bond and Debenture Interest
Mutual Fund Income
๐ Demat & Investment Update (Budget 2026 Amendment)
A key amendment under Budget 2026 proposes:
Investors holding securities in demat form may submit a single Form 121 to their depository (NSDL/CDSL)
Depository will forward details to respective companies automatically
No need to submit multiple forms individually to each company
๐ This significantly reduces compliance burden for retail investors.
๐ Important Limitation
This depository system applies only to listed securities
It does NOT cover Fixed Deposit interest from banks
Separate Form 121 submission may still be required for banks
๐ Example Scenario
If a person holds:
5 company shares
2 bonds
3 mutual fund units
Normally, multiple declarations would be required for each entity.
๐ Under the new system, a single Form 121 submitted via NSDL/CDSL can cover all eligible securities.
๐ Conclusion
The shift from Form 15G and Form 15H to Form 121 is aimed at simplifying the tax compliance process in India.
It reduces paperwork, speeds up TDS exemption, and improves efficiency for both taxpayers and financial institutions.
๐ However, taxpayers must always ensure correct income estimation before submitting any declaration form to avoid penalties.
FAQ – Form 15G, 15H & New Form 121 Update 2026
1. Form 15G Kya Hai?
Form 15G ek self-declaration form hai jo non-senior citizens (below 60 years) submit karte the taaki bank FD interest ya other eligible income par TDS deduct na ho agar unki total taxable income basic exemption limit se kam ho.
2. Form 15H Kya Hai?
Form 15H senior citizens (60 years or above) ke liye hota tha. Agar senior citizen ki total tax liability NIL hai, to wo Form 15H submit karke TDS deduction avoid kar sakte the.
3. Form 121 Kya Hai?
Form 121 ek naya unified TDS declaration form hai jo 1 April 2026 se Form 15G aur Form 15H ko replace karta hai. Ab sabhi eligible resident taxpayers ke liye ek hi common form use hoga.
4. Form 121 Kab Se Applicable Hua?
Form 121 officially 1 April 2026 se applicable hua hai under new Income Tax Act 2025 and Income Tax Rules 2026.
5. Form 121 Ne Form 15G Aur 15H Ko Kyu Replace Kiya?
Government ne compliance simplify karne ke liye age-based separate forms hata diye. Ab below 60 aur senior citizens dono ke liye single declaration system hai.
6. Kaun Form 121 Submit Kar Sakta Hai?
Resident Individuals aur HUFs jinki estimated tax liability NIL hai, wo Form 121 submit kar sakte hain. Non-residents generally eligible nahi hote.
7. Form 121 Kis Income Par Use Hota Hai?
Ye form mainly in incomes par TDS avoid karne ke liye use hota hai:
Bank FD Interest
Savings Interest
EPF Withdrawal
Dividend Income
Post Office Interest
Insurance Commission
Certain Rent Income
8. Kya PAN Mandatory Hai?
Haan, Form 121 me PAN mandatory hai. Agar PAN mention nahi kiya gaya to declaration invalid ho sakta hai aur higher TDS deduct ho sakta hai.
9. Kya Har Saal Naya Form Submit Karna Hoga?
Haan, Form 121 har financial year me fresh submit karna hoga. Previous year ka form automatically carry forward nahi hota.
10. Form 121 Online Kaise Submit Kare?
Aap bank, post office, EPFO portal ya financial institution ke online portal par login karke Form 121 digitally submit kar sakte hain. Kuch institutions physical submission bhi accept karte hain.
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