The Income Tax Department has introduced Form No. 121, a new single form which has replaced the old Form 15G and Form 15H, with an aim to make it easier for taxpayers to avoid TDS (Tax Deducted at Source) on interest, dividends, and various other kinds of income.Under the previous system, people below 60 years used Form 15G, while senior citizens used Form 15H. From April 1, 2026, both forms have been abolished and replaced by the unified Form 121.With this single form, taxpayers can now declare that their entire income is below the taxable limit and that neither the bank nor the payer should deduct TDS. Here are some information for people for broader clarity:What is Form No. 121 and its purpose?It is a declaration by a taxpayer to the effect that tax on his estimated total income for Tax Year will be NIL, with a view to avoid deduction of tax at source. It is required to be submitted to the concerned payer. Based on such declaration, the payer will not deduct tax on income or credit due to the taxpayer.Has the Form No. 121 replaced the existing Forms 15G and15H?Yes, the new Form No. 121 has replaced the earlier Forms 15G & 15H. Now, both type of taxpayers i.e. taxpayers below the age of 60 as well as taxpayers of the age of 60 and above, will use Form No. 121 for submitting declaration in order to avoid relevant income from being subjected to TDS.What types of income are covered in the declaration made in Form No. 121?The following types of income are covered for the purpose of Form No. 121: PF withdrawals and pension, insurance commission, rent, interest on deposits, income from mutual funds, payments in respect of life insurance policy, dividend etc.Is filing of Form No. 121 mandatory?No. It is meant to be used only by those taxpayers who do not want tax to be deducted at source, subject to meeting certain conditions as their tax on estimated total income for Tax Year is likely to be NIL. Declaration in Form No. 121 needs to be filed for every Tax Year separately, as required.Who is eligible to use Form No. 121?Resident Individuals both below 60 years and 60 years or above, HUFs, and other specified entities meeting stipulated criteria. Companies and Firms are not eligible to file Form No. 121. Non-residents are not eligible to file this form.Is the declaration in Form No. 121 required to be submitted to each payer?Yes, declaration needs to be submitted by the declarant in Part A of Form No. 121 to each payer responsible for paying income or sum.Is PAN mandatory?Yes, quoting of PAN is a mandatory requirement for submission of declaration in Part A of Form No. 121 by the declarant. In the absence of PAN, the declaration is invalid and the payer is required to deduct TDS at the applicable rate as per Income-tax Act, 2025.