India Introduces Unified Tax Form to Replace Older Declarations The Indian government has introduced a new tax form, Form 121, which replaces the previously used Forms 15G and 15H. This change, effective under the Income-tax Act 2025, aims to streamline the process for taxpayers seeking to avoid tax deducted at source (TDS) on certain incomes. The new form consolidates the requirements for individuals and entities, simplifying compliance while maintaining the core purpose of declaring zero tax liability. Form 121 is a self-declaration submitted by taxpayers stating that their estimated total income for the financial year is nil, and therefore no TDS should be deducted on specified incomes. Once submitted to the payer—such as a bank, employer, or other entity—the payer is instructed not to deduct TDS, provided the declaration is valid. This replaces the older forms, which were split based on the age of the taxpayer. Form 15G was used by individuals under 60 years of age, while Form 15H was required for senior citizens aged 60 and above. The new form eliminates the need to choose between these two, offering a single solution for all eligible taxpayers regardless of age. Eligibility for Form 121 extends to a range of entities, including resident individuals (both below and above 60 years), Hindu Undivided Families (HUFs), and certain other eligible entities such as companies and firms. This broadens the scope of who can benefit from the simplified process, reducing administrative burdens for taxpayers across different categories. The form covers a variety of income types where TDS exemption may apply. These include interest on bank deposits, insurance commissions, mutual fund income, life insurance payouts, and Provident Fund (PF) withdrawals and pensions.#india #income_tax_act_2025 #form_121 #form_15g #form_15h
