Turning 60? There Is A New Tax Form You Must Know About
If you are a retiree, pensioner or someone living off bank interest or post-office deposits, there is a tax change you cannot afford to miss. Forms 15G and 15H, the declarations millions of Indians have filed for years to avoid Tax Deducted at source, are reportedly being replaced. From April 1, a single new Form 121 takes over under the Income Tax Act, 2025.
The form is meant for individuals whose estimated tax liability for the financial year is nil. By filing it, taxpayers can self-declare to banks, post offices and other deductors that no TDS should be withheld on their specified incomes. It does not cover all income, only those categories specifically listed under the new rules.
Who can file it
There is an important provision for those turning 60 this year. Resident individuals who turn 60 at any point during the financial year will be treated as senior citizens for the entire year for the purpose of filing the declaration. This means anyone celebrating their 60th birthday in the current financial year can still use Form 121, as long as their estimated total tax payable is zero.
Senior citizens get the most breathing room overall. Under the new tax regime, those with income up to Rs 12 lakh can have nil tax liability thanks to available rebates. This threshold rises to Rs 12.75 lakh where the standard deduction on salary or pension income applies — making the form particularly useful for those living off bank interest, post-office deposits or pension.
For non-senior citizens, Hindu Undivided Families, Associations of Persons and Bodies of Individuals, the bar is stricter. Their total income must not exceed the basic exemption limit: Rs 4 lakh under the new tax regime, or Rs 2.5 lakh under the old one.
What incomes it covers
Form 121 can be filed against interest on securities, bank and post-office deposits, dividends, rental income, insurance commission, insurance-related payments including bonuses, and withdrawals from recognised provident funds.
It cannot, however, be used to avoid TDS on professional fees, technical services or contract payments.
The new disclosure requirement
There is an added condition this time. Taxpayers filing Form 121 must now disclose income tax return details for the previous two years, including acknowledgement numbers and reported income. Tax professionals warn this significantly raises the stakes for anyone filing an incorrect declaration. With two years of ITR data now on record, a false declaration is considerably harder to defend.
Experts have cautioned that while Form 121 simplifies the process on paper, taxpayers must remain watchful. Eligibility still depends on estimated income, the choice of tax regime, and whether earnings such as capital gains which are not eligible for tax rebates are part of the picture.
What to do now
Experts advise first checking whether TDS would even apply to your income. If bank interest falls below the prescribed threshold, filing Form 121 may not be necessary at all.
For those who do need to file, the advice is clear, do it early in April. The sooner the form is submitted, the less likely it is that deductions kick in right at the start of the financial year.
Also Read: How New Tax & Duty Tweaks Impact Youhttps://www.vibesofindia.com/how-new-tax-duty-tweaks-impact-you/
