New Income Tax Forms 2026: Form 121 replaces 15G, 15H; full list, key changes explained

New Income Tax Forms 2026: India’s income tax system has entered a new phase from April 1, 2026, with a sweeping overhaul of forms under the Income-tax Rules, 2026. The most visible change is the replacement of Forms 15G and 15H with a single Form 121, but the reform goes much deeper - reshaping how taxpayers file, declare and track income.

The revamp, driven by the Income-tax Act, 2025, aims to simplify compliance, remove duplication and standardise formats across the board. While the process may look cleaner on the surface, the system behind it is far more data-driven, with tighter tracking, reporting and verification.

Form 121 replaces 15G, 15H: What changes from April 2026?

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From the tax year 2026–27, taxpayers will no longer have to decide between Form 15G and Form 15H - a common point of confusion for years.

Earlier, the rules were split by age:

• Form 15G was for individuals below 60
• Form 15H was for senior citizens

Now, both have been merged into Form 121, which applies to all eligible taxpayers regardless of age.

The objective is simple: one standard declaration to avoid TDS, without forcing taxpayers to navigate multiple formats. The intent remains unchanged - only the process has been streamlined.

When can you submit Form 121 to avoid TDS?

Form 121 works on the same principle as earlier declarations. You can submit it if:

• Your total tax liability for the year is nil
• Your estimated income is below the basic exemption limit

Once you file the form, the payer - typically a bank or financial institution - will not deduct TDS on eligible income.

For many taxpayers, especially pensioners and those dependent on interest income, this continues to be a crucial tool to maintain cash flow.

Who is eligible to file Form 121 and who is not?

The new form is available to a wider but clearly defined group of taxpayers.

Eligible:

• Resident individuals (both below and above 60 years)
• Hindu Undivided Families (HUFs)

Not eligible:

• Companies and firms
• Non-residents

The conditions remain strict - if your income crosses the taxable limit or tax liability is not nil, the form cannot be used.

What income is covered under Form 121?

Form 121 continues to cover most income sources where TDS typically applies, ensuring there is no disruption in tax treatment.

These include:

• Interest on savings accounts and fixed deposits
• Pension and provident fund withdrawals
• Dividend income
• Mutual fund income
• Insurance-related payouts
• Rental income
• Insurance commission

This broad coverage is particularly relevant for retirees, who often rely on interest and fixed income streams.

UIN System Explained: Every declaration now leaves a digital trail

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

Each declaration will be assigned a 26-character UIN, which includes:

• A sequence number (starting with ‘D’ followed by 9 digits)
• The relevant tax year (for example, 202627)
• The TAN of the payer

Payers are now required to:

• Assign a UIN to every declaration received
• Report these declarations every quarter even if no TDS is deducted

This marks a move towards end-to-end digital tracking, reducing errors and tightening compliance.

Key income tax forms that have changed

The Form 121 shift is part of a much larger restructuring of tax forms.

Some of the key changes include:

Form 16 is now Form 130 (salary TDS certificate)
Form 26AS is now Form 168 (Annual Information Statement)
Forms 15G and 15H are now Form 121
Tax audit forms (3CA, 3CB, 3CD) are merged into Form 26

Beyond this, forms have been renumbered from Form 1 to Form 190, covering everything from PAN applications to appeals and audit reports.

What has not changed despite the new rules?

Even with the overhaul, the fundamentals of taxation remain intact.

• Eligibility rules for avoiding TDS are unchanged
• Income thresholds continue as before
• Old forms will still apply for filings related to FY 2025–26 and earlier

Impact on taxpayers

For most individuals, the changes will feel simpler and more organised:

• No confusion between multiple forms
• Standard formats across categories
• Less repetitive paperwork