Form 15H scrapped: What senior citizens must know about new Form 121 for TDS relief

Tax rules 2026: In a major shift in tax compliance rules, Form 15H, long used by senior citizens to avoid TDS, has now been discontinued. Starting April 1, 2026, it has been replaced by a new, unified declaration—Form 121—under the Income-tax Rules 2026.

The change marks a structural reset in how taxpayers, especially retirees, manage tax deductions on income such as bank interest and dividends.

End of Form 15H

For decades, senior citizens relied on Form 15H to ensure that no tax was deducted at source if their income fell below the taxable threshold. That age-based distinction is now gone.

Under the new framework, there is no separate form for senior citizens. Instead, all taxpayers—regardless of age—must use Form 121, provided their total tax liability for the financial year is nil.

This effectively means that retirees will now follow the same compliance process as younger individuals, removing the earlier dual-form system.

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One Unified Declaration

The government has merged Forms 15G and 15H into a single document to simplify compliance. According to tax experts at A R A J & Associates LLP, Form 121 functions as a “Unified Declaration,” streamlining multiple processes into one.

At its core, the form is a self-declaration submitted to banks or other payers, stating that the taxpayer’s total income will not attract tax. Based on this, institutions are instructed not to deduct TDS.

Broader applicability

Form 121 is more versatile than the earlier forms and can be used across a wider set of income streams, including:

Interest from savings accounts and fixed deposits Dividends from stocks and mutual funds Rental income Insurance payouts Mutual fund income EPF withdrawals (subject to eligibility conditions)

For senior citizens who often rely on interest income, this expanded scope ensures better control over TDS across multiple financial instruments.

UIN system

A key upgrade in the new system is the introduction of a 26-character Unique Identification Number (UIN) for every Form 121 submission.

Each declaration is linked to the taxpayer’s PAN and tracked across institutions, with banks required to report these filings quarterly. Earlier, multiple Form 15H submissions across banks created fragmented records. Now, the UIN consolidates all declarations, improving transparency and reducing mismatches.

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Eligibility remains strict

While the process is simpler, eligibility is tightly defined. Form 121 can only be filed if the taxpayer’s final tax liability is zero.

For senior citizens, this means careful estimation of annual income is essential. Filing the form despite having taxable income could lead to penalties.

Key risks to watch

Missing deadlines: If Form 121 is not submitted early—ideally in April—banks may deduct TDS, which can only be reclaimed later through ITR filing.

PAN issues: An inactive or mismatched PAN can trigger TDS at higher rates (up to 20%).

Incorrect declarations: Misreporting income to avoid TDS can invite scrutiny and penalties.

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In Nutshell

The removal of Form 15H signals the government’s intent to build a uniform, technology-driven tax system. By eliminating age-based forms and introducing UIN-linked tracking, the new framework reduces paperwork while strengthening compliance.

For senior citizens, the key takeaway is clear: while Form 15H is gone, the benefit remains—just under a new, streamlined system. Filing Form 121 on time will be essential to ensure uninterrupted income without tax deductions.