Form 15G/15H removed | How to file new form 121 to save TDS on interest from bank FD

Summary

From April 2026, Forms 15G and 15H are replaced by Form 121 under the new Income Tax Act, allowing taxpayers to save TDS on FD interest. The video explains eligibility criteria based on age and total income, TDS thresholds, and the legal implications of submitting false information. It details step-by-step instructions for filing Form 121 both online and offline, including completing Part A for personal and income details, declaring estimated income, and understanding previous Form 121 submissions. Once submitted, banks will credit FD interest without TDS. The tutorial emphasizes accuracy and careful filing to avoid penalties and imprisonment under Section 482.

Takeaways

• 😀 April 2026 onwards, a new Income Tax Act comes into effect, replacing Form 15G and 15H with the new Form 121 for TDS exemptions on FD interest.
• 😀 If you want to save TDS on FD interest, you must file the new Form 121 correctly, as incorrect filing can lead to jail terms ranging from 3 months to 2 years under Section 482.
• 😀 The threshold for TDS deduction on FD interest is ₹1,00,000 for senior citizens and ₹50,000 for others in a financial year.
• 😀 Banks may sometimes deduct TDS even if the FD interest is below the limit, so filing Form 121 is recommended to avoid this.
• 😀 Form 121 can be filed both online (via bank’s net banking or mobile apps) and offline (by visiting the bank branch).
• 😀 If you are under 60 years of age, you must ensure your total income is below the basic exemption limit to be eligible to file Form 121 for TDS exemption.
• 😀 Senior citizens (60 years or older) can also file Form 121 even if their tax liability is zero, which is common for incomes up to ₹12 lakh under the new tax regime.
• 😀 Incorrectly filing Form 121 with false information can result in severe penalties, including imprisonment for up to 2 years.
• 😀 Form 121 has two sections: Part A (to be filled by the taxpayer) and Part B (to be filled by the bank). You only need to complete Part A and submit it to the bank.
• 😀 Ensure you provide accurate details about your income and estimated FD interest when filling out Form 121, especially if you have multiple FDs with different banks.

Q & A

What is the purpose of Form 121 under the new Income Tax Act?

Form 121 replaces Form 15G/15H and is used to declare estimated income to avoid TDS deduction on interest income, such as Fixed Deposits (FDs).

Who is eligible to file Form 121?

Non-senior citizens (<60) can file if their total income is below the exemption limit (₹4 lakh under the new regime, ₹5 lakh under the old regime). Senior citizens (≥60) can file if their tax liability is zero.

What are the TDS threshold limits for FD interest?

For senior citizens (≥60), the threshold is ₹1,00,000 per financial year. For others (<60), it is ₹50,000 per financial year.

What are the penalties for filing Form 121 incorrectly?

Under Section 482, filing false information in Form 121 can result in imprisonment from 3 months up to 2 years.

How can Form 121 be filed?

Form 121 can be filed online through the bank's net banking or mobile app, or offline by submitting a PDF form at the bank branch.

What are the two parts of Form 121, and who fills them?

Part A is filled by the taxpayer with personal and income details, while Part B is filled by the bank.

How should the estimated income be calculated for Form 121?

Estimated income includes FD interest, savings account interest, pension, PF, rental income, or any other expected income for the financial year. This is necessary when filing early in the year, as actual income is not yet known.

What details must be provided about previous Form 121 filings?

You must indicate if Form 121 has been filed in other banks, the number of forms filed, and the aggregate income declared in those forms.

What details from previous ITR filings need to be included?

Acknowledgment numbers for the previous two tax years and the total income reported in those ITRs. If ITR was not filed, this section can be left blank.

What personal information is required in Part A of Form 121?

Name, address, PAN, residential status, age confirmation, email, mobile number, tax year, nature of income, estimated income, previous Form 121 details, previous ITR details, and a declaration with signature, place, and date.

What should taxpayers do if they have multiple FDs in different banks?

They should report all previous filings of Form 121 in other banks, including the number of forms filed and the aggregate income from those forms to ensure correct TDS exemption.

After submitting Form 121, what happens to TDS on FD interest?

Once the bank receives Form 121, it will not deduct TDS on the reported FD interest, and the full interest will be credited to the taxpayer's account.