EPFO introduces Form 121 under new tax law; replaces Form 15G and 15H

The Employees’ Provident Fund Organisation (EPFO) has introduced a new compliance framework following the rollout of the Income-tax Act, 2025, replacing the widely used Form 15G and Form 15H with a unified Form 121. The change has come into effect from April 1, 2026, as per an EPFO circular dated April 13.

“With the phasing out of the Income-tax Act, 1961, and the commencement of the Income-tax Act, 2025… the erstwhile Form 15G and Form 15H have been replaced by a single, consolidated written declaration in Form 121,” EPFO said.

What is Form 121?

Form 121 is a self-declaration submitted by taxpayers stating that their estimated total income for the financial year is nil, and therefore, no tax deducted at source (TDS) should apply on specified incomes.

Once submitted to the payer—such as EPFO, banks, or employers—the entity will not deduct TDS, provided the declaration is valid.

What has changed from Form 15G & 15H?

The biggest shift is consolidation and simplification.

Earlier:

Form 15G → for individuals below 60 years
Form 15H → for senior citizens (60+)

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Now:

Form 121 → a single form for all eligible individuals, irrespective of age

This eliminates the need to choose forms based on age and creates a uniform compliance framework.

Who should file Form 121?

Form 121 is meant for taxpayers who:

Expect zero tax liability for the financial year
Want to avoid upfront TDS deduction

Eligible users include:

Resident individuals (below and above 60 years)
Hindu Undivided Families (HUFs)
Other specified eligible resident entities

Not eligible:

Companies and firms
Non-residents

Importantly, filing the form is not mandatory. If not submitted, TDS will be deducted as usual, and taxpayers can claim a refund later.

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What income is covered?

Form 121 can be used to avoid TDS on multiple income streams, including:

Interest on bank deposits
Dividends
Rent income
Insurance commissions
Mutual fund income
Life insurance payouts
Provident Fund withdrawals and pensions
How does the process work?
Taxpayers can submit Form 121 physically or online (depending on the payer)
The payer must assign a Unique Identification Number (UIN) for each declaration
Details must be uploaded to the income tax e-filing portal
Transactions are reported in quarterly TDS statements (Form 140)

EPFO has also clarified that Form 15G/H submissions made after April 1, 2026, will not be rejected, but Form 121 may need to be obtained subsequently.

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What’s new in Form 121?

The revised Form 121 is designed as a smart, digital-first form to improve ease of compliance and reduce errors:

Auto-population of details using taxpayer profile data
Real-time validation and error handling
Dropdown menus and date pickers for accuracy
API and database integration for seamless processing
Checkbox-based smart verification
Standardised name and address fields

In addition, the consolidation into a single form across age groups significantly simplifies user experience and reduces confusion.

What should taxpayers watch out for?

While the form simplifies the process, compliance responsibility remains critical:

Incorrect declaration (if tax is actually payable) may attract penalties
Taxpayers with multiple income sources may need to file across payers
Timing matters—late submission will not prevent TDS deduction