Form 15H replaced by Form 121: What changes for senior citizens from April 1, 2026

Starting April 1, 2026, senior citizens will see a key procedural shift in how they avoid Tax Deducted at Source (TDS) on their income. The long-used Form 15H will be discontinued and replaced by a new, unified declaration -- Form 121 -- under the Income-tax Rules, 2026.

This change is part of the broader overhaul under the Income-tax Act, 2025, aimed at simplifying compliance and reducing duplication in tax processes.

One form replaces two

Until now, taxpayers used two separate forms:

Form 15G: For individuals below 60 years
Form 15H: For senior citizens aged 60 years and above

From the new tax year 2026–27, both forms will be merged into Form 121, which will apply to all eligible taxpayers regardless of age.

For senior citizens, this eliminates the need to track a separate form category. The system will automatically identify the taxpayer’s age and apply the relevant provisions while processing the declaration.

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When can senior citizens use Form 121?

Form 121 can be submitted to avoid TDS if:

The total tax liability is nil, and
The individual’s income is below the basic exemption limit

Once submitted, the payer—such as a bank or financial institution—will not deduct TDS on eligible income.

For retirees and pensioners, this continues to be a critical tool to ensure liquidity, especially where income primarily comes from interest or fixed payouts.

Income types covered under Form 121

The scope of Form 121 remains broad and continues to cover key income sources relevant for senior citizens, including:

Interest on bank deposits and fixed deposits
Pension and provident fund withdrawals
Dividend income
Income from mutual funds
Insurance-related payments
Rental income

This ensures continuity in tax treatment, even as the compliance mechanism changes.

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Introduction of UIN

A major operational shift is the introduction of a Unique Identification Number (UIN) system for every Form 121 submission.

Key aspects include:

Each declaration will be assigned a 26-character UIN by the payer
The UIN will include:
A sequence number
The relevant tax year (e.g., 202627)
The payer’s TAN

Payers are required to:

Record and report all declarations (even where no TDS is deducted)
File quarterly statements with details of Form 121 submissions

This marks a shift toward end-to-end digital tracking and verification, reducing the scope for errors or misuse.

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Simpler, but more data-driven

For senior citizens, the transition from Form 15H to Form 121 is largely about simplification:

No separate forms based on age
Standardised declaration process
Reduced paperwork

However, the backend system is becoming significantly more data-intensive. With UIN tracking and integrated reporting, tax authorities will have better visibility into income streams and declarations.

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Other changes

The reform is accompanied by broader compliance simplification measures:

A single challan-cum-statement system for TDS reporting across transactions
Greater reliance on PAN-based reporting instead of multiple identifiers

These changes aim to make tax processes more seamless, especially for individuals dependent on fixed income streams.

The key takeaway: the ability to avoid TDS remains intact—but accuracy, eligibility, and proper declaration will matter more than ever under the new system.