When you invest in a fixed deposit, you earn interest on your invested principal amount. This interest earned on your deposit is considered as your income and is therefore taxable. Banks and NBFCs deduct TDS (Tax Deducted at Source) on the interest you earn on your invested amount. If your total income is below the basic exemption limit, you could apply for a TDS waiver by submitting Form 15G or Form 15H. However, as per the Income Tax Act, 2025 and the draft rules released by the Government, effective 1 April 2026, Form 15G and Form 15H will be replaced by a single consolidated Form 121.
What is a Form 121?
Form 121 is a self-declaration form that you submit to the financial institution requesting not to deduct TDS on the interest income.
If you’re below 60 years of age and your total income is below the taxable limit, you should submit Form 121 for TDS waiver. However, if your age is 60 years or above, it is advisable to submit a Form 121 for TDS waiver.
If you’ve invested in our fixed deposit, you can download Form 121 and apply online for a TDS waiver. All you must do is go to our customer service portal and follow these easy steps:
- Click on ‘Sign-in’ on this page to go to Service portal.
- Sign-in with your registered mobile number and the OTP.
- Enter your date of birth for verification and proceed.
- Select the deposit for which you want to submit Form 121.
- Click on the ‘Submit Form 121’ option within the ‘Quick Actions’ section.
- View your Form 121 and click on ‘Proceed’.
- Enter any additional information that is needed.
- Verify with the OTP received on your registered mobile number and proceed with submission.
Our customer portal allows you to apply online for a TDS waiver by submitting Form 121. You can also download your Form 121 and submit this pre-filled form at our nearest branch and apply for a TDS waiver.
Eligibility Criteria for Using Form 121
Form 121 are self-declaration forms used to avoid tax deduction at source (TDS) on interest income.
Eligibility for Form 121:
- You must be an individual or a Hindu Undivided Family (HUF).
- You should be a resident of India.
- Your age must be below 60 years.
- The total income should be below the basic exemption limit, which is ₹2.5 lakh for the financial year.
- The total interest income for the year should be less than the basic exemption limit.
Eligibility for Form 121:
- You must be an individual who is a resident of India.
- You should be 60 years or older, qualifying as a senior citizen.
- The total tax liability for the financial year should be zero.
These forms help ensure that no TDS is deducted if your income falls below the taxable limit.
Step-by-Step Guide to Downloading Form 121
Downloading Form 121 is a straightforward process. Follow these steps:
- Visit the Official Website: Go to the Income Tax Department's official website at www.incometaxindia.gov.in.
- Navigate to Forms: Click on the 'Forms/Downloads' section available on the homepage.
- Select the Relevant Form: Search for Form 121 in the list of forms provided.
- Download the Form: Click on the desired form to download it. The form will typically be in PDF format.
- Save the File: Save the downloaded form on your device for printing and filling out.
Alternatively, you can obtain these forms from your bank's website. Log in to your internet banking account, go to the 'Services' or 'Tax' section, find the form, and download it.
By following these steps, you can easily access and download Form 121 for submission.
How to Fill Out Form 121 Correctly?
To fill out Form 121 correctly, follow these steps:
- Personal Details: Enter your name, PAN, and residential status.
- Declaration: Specify the financial year, and declare that your total income is below the taxable limit.
- Income Details: Provide details of income for which the form is being submitted, including interest income.
- Previous Year Income: Mention your income details from the previous year.
- Signature: Sign the form and date it. If you are submitting Form 121, ensure you mention your age as 60 years or above.
Submit the filled form to your bank or financial institution to avoid TDS deductions.
What happens if you forget to submit form 12B/15G/15H
Submitting the required tax forms on time helps ensure correct tax calculation and avoid unnecessary deductions. If you forget to submit Form 12B, Form 15G, or Form 15H, it may impact how your income or interest earnings are processed for tax purposes.
Here is what may happen:
Form | What happens if you do not submit it |
Form 12B | Your new employer may not have details of your previous salary income and tax deductions. This may affect your final tax calculation. |
Form 15G | Tax may be deducted at source (TDS) from your interest income if you are eligible but have not submitted the declaration. |
Form 15H | Senior citizens may face TDS deduction on eligible interest income if the declaration is not provided on time. |
If extra TDS has been deducted, you may claim a refund while filing your income tax return, subject to applicable tax rules.
Do you need to submit the form every year
Yes, Form 15G and Form 15H need to be submitted every financial year if you meet the eligibility conditions. These forms are valid only for one financial year and do not get renewed automatically.
Keep these points in mind:
- Submit at the beginning of the financial year: This helps avoid unnecessary TDS deductions on eligible income.
- Check your eligibility: Submit these forms only if your total income and tax liability meet the required conditions.
- Provide correct details: Ensure information such as PAN, income details, and declaration details are accurate.
- Submit separately if required: If you have deposits with multiple financial institutions, you may need to submit forms wherever applicable.
Form 12B is different. It is usually submitted when you change jobs during a financial year to share your previous employment and salary details with your new employer.
