Form 121 Explained: New Form 15G/15H for FD TDS (2026)

Form 121 Explained: The New Form 15G/15H to Stop TDS on FD Interest (2026)

October 26, 2026

Every year, thousands of FD holders see tax deducted on their interest even though their total income is below the taxable limit. The money isn’t lost, but it sits with the tax department until you file your return and claim a refund. For years the fix was Form 15G or Form 15H. Since 1 April 2026, the declaration is Form 121, and a lot of the guides, bank pages and PDFs you will find are still describing the old forms.

Quick Answer

Form 121 is a declaration you give your bank (the payer) saying your tax for the year will be nil, so it need not deduct TDS. It is made under section 393(6) of the Income-tax Act, 2025.
It sits alongside Forms 15G and 15H on the Income Tax Department’s site, and one form now covers both age groups: the form asks whether you are 60 or older.
You give it to the bank, not to the tax department. The bank reports it in its TDS statement.
It only stops TDS. The interest is still taxable income and still goes in your return.

When Do You Actually Need It?

A bank deducts TDS on FD interest only when the interest it pays you in a financial year crosses a limit. Per the Income Tax Department, that limit is ₹50,000 for most depositors and ₹1,00,000 for resident senior citizens (aged 60 or more), and it is counted per bank. The rate is 10%, and if you haven’t given your PAN the deduction is at the higher rate of 20%.

So you need Form 121 only if two things are both true: your interest at one bank will cross the limit, and your total tax for the year will still be nil. A retired depositor with a modest pension and ₹1.4 lakh of FD interest at one bank is the classic case. Without the form, the bank deducts about ₹14,000 (10%). With it, the bank deducts nothing.

Who Can Submit Form 121?

This guide is about resident individuals. The form’s own conditions are what decide whether you can sign it:

Tax on your estimated total income for the year will be nil. This is about all your income, not just the interest. Salary, pension, rent and other interest all count.
If you are under 60, the income you are declaring must also not exceed the maximum amount not chargeable to tax for that year.
If you are 60 or older, that second condition does not apply. Only the nil-tax condition does, which is why seniors can sometimes submit it with higher interest.

Your bank must not accept the form if the nil-tax condition fails. Declaring nil tax when it isn’t can lead to prosecution or penalty, according to the declaration printed on the form, so work out your estimated total income before you sign.

How to Fill Form 121 (Field by Field)

Part A is filled by you. It asks for the following:

Fields 1 to 3: name, address and PAN. Your name should be given in full, without abbreviations.
Fields 4 and 5: status (individual) and residential status. Field 5(a) asks whether you are 60 or more at any time in the tax year.
Fields 6 and 7: email ID and contact number.
Field 8: the tax year the declaration is for.
Field 9: the nature of income. For FD interest, this is where you describe it as interest.
Field 10: the estimated income you are declaring, for example the FD interest at this bank.
Fields 11(a) and 11(b): how many Form 121s you have already filed this year and the income they cover, or nil.
Field 12: the total income covered by this declaration (field 10 plus field 11(b)).
Field 13: your estimated total income for the year from all sources, including the income in field 12.
Field 14: details of your income tax returns for the previous two years: tax year, acknowledgement number and return income.

Then sign the declaration with your place and date. Keep a copy, and ask for an acknowledgement if you submit on paper.

When and Where to Submit It

Before the interest is credited, and preferably at the start of the tax year. The Department’s user manual says this directly.
To the bank, through net banking, the app or a branch, depending on what your bank offers. You do not file Form 121 yourself on the income tax portal. The bank, as the deductor, uploads the details and reports a unique identification number (UIN) for each declaration in its quarterly TDS statement.
Separately to each bank where you hold FDs. One declaration doesn’t cover another bank.
Every year. Field 8 ties the form to one tax year, so expect to submit again for the next one. Banks may also ask for it when you open a new FD.

What If TDS Has Already Been Deducted?

Submitting the form late doesn’t reverse a deduction that has already been made. In that case, claim the tax as a credit when you file your income tax return, and the excess comes back as a refund. This is why timing matters: submit before the interest is credited, not after the deduction shows in your statement.

Mistakes to Avoid

Estimating only your FD interest. The nil-tax test is on your total income from every source.
Assuming the interest becomes tax-free. It doesn’t. Report it in your return.
Using the old Form 15G or 15H for the 2026-27 year. Banks have moved to Form 121, so an old form may be rejected.
Forgetting a bank. If you hold FDs with three banks, you need three declarations.
Leaving PAN out. Without a valid PAN, the bank deducts at 20%.

How This Fits With Your FD Planning

The per-bank limit is also a planning tool. Spreading deposits across banks keeps interest at each one below the threshold, and our FD laddering guide and laddering calculator show how to stagger them. To compare where rates stand, see our FD interest rates guide, and for salary deductions use the TDS calculator. If you are a senior citizen weighing options, our SCSS guide covers a scheme with its own TDS rule.

Frequently Asked Questions

Has Form 121 replaced Form 15G and Form 15H?
From 1 April 2026, the declaration is Form 121 under section 393(6) of the Income-tax Act, 2025. The Income Tax Department lists it together with Forms 15G and 15H, and the age question is now a field on the form.

Do I submit Form 121 on the income tax website?
No. You give it to the bank or other payer. The payer uploads the details on the portal using its TAN and reports a UIN for each declaration.

What is the TDS limit on FD interest?
TDS applies if interest at one bank crosses ₹50,000 in a financial year, or ₹1,00,000 for resident senior citizens. The rate is 10% with PAN and 20% without.

Can I submit Form 121 after TDS is deducted?
It won’t reverse the deduction. Claim the tax in your income tax return to get a refund.

Does Form 121 make FD interest tax-free?
No. It only asks the payer not to deduct tax. The interest is still part of your income and must be shown in your return.

This is general information, not tax advice. The rules and your bank’s process can differ in the details, so confirm with your bank or a chartered accountant before signing a declaration. Sources: Income Tax Department (Form No. 121 page, Form 121 user manual, section 194A and TDS on interest pages) and the official Form 121 text.