Form 15H replaced by Form 121: What changes for senior citizens in TDS exemption rules?

The Income-tax Rules 2026 have introduced a significant update in how taxpayers, especially senior citizens, claim exemption from Tax Deducted at Source (TDS).

Form 15H, which was traditionally used by senior citizens to prevent TDS on income such as interest earnings, has now been discontinued and replaced by a new unified declaration called Form 121.

Earlier, taxpayers below 60 years used Form 15G, while senior citizens used Form 15H. With the introduction of Form 121, this age-based distinction has been removed. The new form serves as a single declaration for all individuals whose total tax liability for the financial year is nil. This simplifies the process by combining the two older forms into one standard format.

Form 121 can be used by taxpayers to inform banks and other institutions not to deduct TDS on eligible income if their estimated total income falls below the taxable limit. This includes income from sources such as interest on fixed deposits, recurring deposits, dividends, rental income, and certain insurance or EPF-related payouts.

A key feature of the new system is the introduction of a Unique Identification Number (UIN), which is generated for each Form 121 submission. This number helps track declarations across institutions and improves transparency in the tax system. Banks and financial institutions are required to report these filings periodically, reducing duplication and errors in TDS claims.

Despite the simplified framework, eligibility conditions remain strict. Taxpayers must ensure that their total taxable income for the year is within the exemption limit. Additionally, PAN must be linked with Aadhaar and active; otherwise, the declaration may be considered invalid, leading to higher TDS deductions. Taxpayers are also required to provide accurate details of their income, including estimated earnings from all sources, to validate their declaration.

Experts advise caution while filing Form 121. Common mistakes include delayed submission, incorrect income estimation, failure to file separate declarations with each payer, and neglecting PAN-Aadhaar linkage. Errors in filing can lead to unnecessary tax deductions, penalties, or scrutiny by tax authorities.

The transition to Form 121 reflects the government’s move towards a more streamlined and technology-driven tax compliance system. While the process has been simplified, taxpayers—especially senior citizens—must remain careful in filing accurate and timely declarations to fully benefit from TDS exemption provisions.