The new Income Tax Act 2025 has consolidated India's tax code by replacing Forms 15G and 15H with a single Form 121 for all taxpayers. According to Mint, this unified form is designed to streamline and simplify India's tax codes, with the government consolidating the number of forms from 399 to 190. The new Form 121 is effective for Assessment Year 2026-27 (Financial Year 2025-26) and serves as the primary tool for individuals and Hindu Undivided Families (HUFs) to prevent TDS deduction on dividends, interest, and other income when earnings are below the taxable amount. Notably, while the previous forms were separated based on age, the unified Form 121 is sufficient for all taxpayers across all ages.
EPFO members planning to withdraw PF money without TDS deduction must complete Form 121 under the Income Tax Act, 2025. According to EPFO's recent communication to regional PF Commissioners, the declarant must ensure their expected final tax liability for the year is NIL and fill all rows in Part A of Form No. 121. The form is not mandatory but is available for taxpayers who specifically want to avoid tax deduction at source. As reported by Mint, the declarant must be a resident and sign the form after filling all required details. To avoid TDS, the declaration must be submitted before deduction takes place either in person or online through respective bank websites or apps, making this an annual exercise that must be repeated each tax year.
To be eligible for Form 121, taxpayers must be Indian residents with total tax liability after exemptions and deductions at zero. Under the old tax regime, the basic exemption limit is ₹2.5 lakh for individuals below 60 years and ₹3 lakh for senior citizens. Under the new tax regime, the limit is ₹4 lakh for all individuals. According to Mint, Form 121 covers dividend income, employee provident fund (EPF) or public provident fund (PPF) withdrawals, pension, insurance commission, interest on bank fixed deposits and savings accounts, income from mutual funds, interest on post office deposits, interest on securities or bonds, payments from life insurance policies, rental income, and other specified incomes where TDS is applicable. Companies, individuals or entities with taxable income, non-resident Indians (NRIs), and partnership firms are not eligible to use the form.
EPFO offices must allot a Unique Identification Number (UIN) to every Form 121 received, which must include a sequence number, tax year, and the payer's TAN. As reported by Mint, the consolidated statement of all Forms 121 received in a month must be uploaded on or before the 7th of the following month through the e-filing Portal of the IT Department. Currently, online filing of forms with digital e-signing is not available, requiring members to use physical signed forms for preparing consolidated statements. For bank depositors, Form 121 must be submitted to each bank separately to avoid TDS on interest earned on fixed deposits before monthly payouts. Similarly, Form 121 must be submitted with India Post for post office FDs or pension payouts.
EPFO members can file Form 121 before the scheduled transaction date or at the start of financial year 2026-27. According to EPFO guidelines, members must provide PAN (Permanent Account Number) and their estimated income during the financial year. The form can be used in lieu of Form 15G/Form 15H for preparing consolidated statements for uploading in the e-filing portal of the IT Department monthly and quarterly TDS returns. In case TDS has been cut over the taxable amount because of non-submission of Form 121, taxpayers are eligible for a refund after their ITR has been processed, with the refund directly credited to their savings bank account as mentioned in ITR.
