Form 121 Income Tax word format Download

form 121 income tax word format Download

Here are the key points regarding Form No. 121 under the new income tax Act 2025 and Income tax Rules 2026 framework:

What is form 121 in income tax : It is Single Unified Form for non-deduction of TDS under Income Tax Act 2025 in India from 1st April 2026 . Form 121 is a new, single unified declaration form that merges and replaces the older Form 15G and Form 15H used under the Income-tax Act, 1961.
Purpose: It is a self-declaration submitted by an eligible taxpayer to a payer (such as a bank or financial institution) requesting the non-deduction of TDS. By submitting this form, the recipient of the income declares that the tax on their estimated total income for the tax year will be nil.
Universal Applicability: Previously, taxpayers had to determine their eligibility and choose between Form 15G (for resident individuals below 60 years of age and other eligible persons) and Form 15H (for resident individuals aged 60 or above). Form 121 eliminates this confusion because it is applicable to all eligible declarants regardless of their age.
Governing Section: Under the new Income-tax Act, 2025, Form 121 is governed by Section 393(6).
Effective Date: This merged form will be applicable starting from the Tax Year 2026-27.
Simplified Compliance: By splitting away from category-specific forms and using a single unified form, it completely removes ambiguity and simplifies compliance for both the taxpayers and the payers.
When to FileForm No. 121 is applicable for tax years beginning on or after April 1, 2026 (i.e., from Tax Year 2026-27 onwards).You should file Form 121 with the person responsible for paying your income (the deductor) before the tax is deducted at source—meaning before the income is paid or credited to your account.By submitting this written declaration, you are instructing the payer not to deduct TDS because your estimated total income for the tax year will be nil.Once you submit the form to the payer, it is the payer’s responsibility to deliver a copy of your declaration to the Income Tax Department on or before the 7th day of the month following the month in which you provided the form to them.for
Eligibility criteria to file 121
- For Non-Senior Citizens (Below 60 years): They must satisfy two conditions. Their estimated final tax liability for the year must be nil, AND their total estimated income for the year must not exceed the basic exemption limit (the maximum amount not chargeable to tax)
- For Senior Citizens (60 years and above): They are exempted from the basic exemption limit condition. A senior citizen can successfully submit Form 121 as long as the final tax on their estimated total income for the tax year will be nil, even if their gross income crosses the basic exemption limit
when can File form 121 : Under the Income-tax Act, 2025, Form No. 121 is a single unified self-declaration form that merges and replaces the old Form 15G and Form 15H. It is used by eligible taxpayers to request a payer (such as a bank or financial institution) not to deduct Tax Deducted at Source (TDS) because their estimated tax on total income for the year will be zero.Here are examples of individuals who can file Form 121 based on their age:1. Example of a person less than 60 years of age (Previously eligible for Form 15G) Mr. Sharma is a 45-year-old resident individual. He earns an annual income of ₹2,50,000 from his freelance work and expects to earn ₹1,00,000 as interest from his bank fixed deposits. His total estimated income for the year is ₹3,50,000. Because his total income falls below the basic taxable limit, his estimated tax liability for the year will be nil. Mr. Sharma can submit Form 121 to his bank, instructing them not to deduct TDS on his fixed deposit interest.2. Example of a person aged 60 years or above (Previously eligible for Form 15H) Mrs. Gupta is a 68-year-old resident senior citizen. She earns a family pension and interest from her savings, bringing her total estimated income for the tax year to ₹8,00,000. Under the New Tax Regime, resident individuals with a total income not exceeding ₹12,00,000 are entitled to a 100% tax rebate under Section 156 (capped at ₹60,000), making her final tax liability entirely nil. Since her estimated tax on her total income will be nil, Mrs. Gupta can submit Form 121 to her bank to ensure no TDS is deducted from her interest payouts.In both cases, the unified Form 121 eliminates the confusion of choosing between age-specific forms, as it applies to all eligible declarants regardless of their age.