Give the nil-TDS declaration to the bank, company, or other payer that will credit or pay your eligible income. Submit it before the payment or credit—preferably at the start of the tax year—so the payer can avoid deducting tax in the first place. For tax years beginning on or after 1 April 2026, the Income Tax Department’s unified Form 121 replaces the separate Forms 15G and 15H. Forms 15G and 15H remain relevant to an earlier tax year only under the rules that applied to that year.
A declaration stops withholding when you meet the statutory nil-tax conditions; it does not make the income exempt. You must still report taxable income and pay any final tax that becomes due.
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First identify the tax year and the correct form
The form is controlled by the tax year in which the income is credited or paid. The Income Tax Department describes Forms 15G and 15H as declarations under section 197A of the Income Tax Act, 1961. For a tax year beginning on or after 1 April 2026, the corresponding provision is section 393(6) of the Income Tax Act, 2025, and the declaration is made through unified Form 121.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problems| Tax-year situation | Declaration framework | Who handles the filing with the Department |
|---|---|---|
| Earlier tax year governed by the Income Tax Act, 1961 | Form 15G for qualifying resident declarants below age 60 or another eligible person; Form 15H for a qualifying resident individual aged 60 or older. Prescribed income and other conditions apply. | The payer or deductor follows the process applicable to that earlier year. |
| Tax year beginning on or after 1 April 2026 | Form 121, the unified declaration under section 393(6) of the Income Tax Act, 2025. | The payer or deductor files the declaration details through the Income Tax e-filing portal. |
Do not submit a legacy form merely because a bank’s website still displays an old download. Ask which tax year the declaration covers and which form the payer will accept. If you are dealing with an earlier year, follow that year’s statutory form and instructions. If the tax year starts on or after 1 April 2026, ask for the payer’s Form 121 workflow.
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What a nil-TDS declaration does—and does not do
Tax deducted at source (TDS) is a withholding mechanism. The payer deducts an amount before crediting or paying certain income and reports that deduction to the tax authorities. A valid declaration tells the payer that, based on your estimated total income for the relevant tax year and the prescribed conditions, your tax liability is expected to be nil. The payer can then avoid withholding on the covered receipt.
The declaration does not change the character of the income. Interest, rent, commission, or another receipt remains taxable or exempt according to the ordinary tax rules that apply to it. If your circumstances change and tax becomes payable, you remain responsible for reporting the income and paying the correct amount. A declaration is therefore not a substitute for an income-tax return, advance-tax payment, or year-end reconciliation.
Who may qualify
Form 15G under the earlier framework
Form 15G was intended for a qualifying resident individual below age 60, and for certain other eligible persons that are not a company or firm, subject to prescribed conditions. The conditions depend on matters such as residency, the type of income, your estimated total income, and your estimated tax liability. For bank interest, the Department’s assessment-year 2026–27 overview describes Form 15G for eligible residents whose income is below the basic exemption limit and asks for estimated income for the financial year.
That description is not a universal age-and-income shortcut. Being under 60 does not by itself make a person eligible. You must satisfy every condition applicable to the receipt and the relevant tax year. The official overview available for this transition does not reproduce a complete income-type-specific schedule of thresholds, so check the statutory form and instructions for your year or obtain advice when your case is not straightforward.
Form 15H under the earlier framework
Form 15H was for a resident individual aged 60 or older. Age is the distinguishing category, not the only test: the prescribed nil-tax and income conditions still apply. A senior citizen whose estimated tax liability is not nil should not submit the declaration simply because the person is 60 or older.
Form 121 for tax years beginning on or after 1 April 2026
Form 121 brings the two legacy declarations into one form. The Department states that the eligibility criteria continue under section 393(6), while the form captures the declarant’s estimated income and nil-tax declaration for the relevant tax year. The unified form does not mean that every resident, every receipt, or every income level qualifies. Residency, age category where relevant, income type, total estimated income, and the prescribed conditions still have to line up.
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Information to prepare before approaching the payer
Preparation reduces rejected declarations and prevents a deduction while the payer is waiting for missing details. Gather the following for the exact tax year and payer:
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- Your residency status and, for the legacy forms, the age category that determines whether Form 15G or Form 15H is appropriate.
- The payer’s name and account or contract reference for the deposit, security, policy, rent, or other receipt covered by the declaration.
- An estimate of total income for the tax year, including the income covered by the declaration and other income that contributes to your total tax calculation.
- Details of tax already deducted or expected to be deducted by other payers, where the form or payer’s process asks for them.
- The tax year, quarter, and payer details needed for the payer’s filing record.
- Supporting information the payer requests to validate identity, residency, age, or account ownership.
Do not estimate only the interest from one bank account. The nil-tax statement concerns estimated total income for the relevant year, so income from other banks, investments, employment, pensions, rent, or other sources can affect eligibility. If you cannot make a reliable total-income estimate, pause and obtain professional advice rather than signing a declaration that may be incorrect.
How to submit Form 15G or Form 15H for an earlier tax year
The taxpayer gives the declaration to the payer or deductor; it is not a standalone income-tax return filed directly by the taxpayer. Banks and financial institutions commonly provide their own online or branch submission route for the legacy forms. Use the payer’s current channel for the relevant year and retain the confirmation.
- Confirm the year and form. Ask the payer whether the receipt belongs to an earlier tax year governed by section 197A and whether you should use Form 15G or Form 15H.
- Check the conditions. Confirm that you are a resident, fall into the correct age category, and meet the prescribed income and nil-tax requirements for that receipt and year.
- Complete every required field. Enter identity details, the payer and account reference, estimated income, and other declarations exactly as requested. Do not leave material fields blank or use an estimate that excludes other income.
- Submit through the payer. Use the bank’s authenticated online form, branch process, or another channel the deductor specifies. The declaration must reach the payer that would otherwise deduct TDS.
- Submit before credit or payment. The official guidance recommends submitting in time to prevent deduction in the first place, preferably at the start of the tax year.
- Save proof. Keep the submitted copy, date, payer acknowledgement, and any reference number. A screenshot or email receipt is useful when the form was submitted electronically.
- Check the next statement. Confirm that the payer applied the declaration to the intended account and period. If TDS still appears, contact the payer promptly; a late declaration may not reverse a deduction that has already been processed.
How Form 121 works from 1 April 2026
Form 121 is a payer-facing filing in the current framework. Your key action remains furnishing a complete declaration to the deductor. The deductor then enters and verifies the declaration details on the Income Tax e-filing portal.
The taxpayer’s part
- Ask the bank, financial institution, or other payer for its Form 121 declaration process for the applicable tax year.
- Provide the completed declaration and any identity or account information the payer requires.
- Submit it early enough for the payer to process it before the first credit or payment.
- Request the acknowledgement or internal reference that shows the payer received your declaration.
- Review later account statements and tell the payer immediately if the declaration was attached to the wrong account, year, or income type.
The deductor’s portal process
The Income Tax Department’s Form 121 User Manual describes these steps for the payer:
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- Log in to the Income Tax e-filing portal using the deductor’s Tax Deduction and Collection Account Number (TAN).
- Open e-File → Income Tax Forms → File Income Tax Forms.
- Select Deduction and Collection at Source (Form 121).
- Choose the filing type, tax year, and quarter.
- Enter the payer’s details and the declarant’s details from the declaration supplied by the taxpayer.
- Upload the declaration data in the format and method accepted by the portal.
- Review the completed form for identity, account, tax-year, income, and declaration errors.
- E-verify and submit the form.
- Record the acknowledgement number and transaction ID issued after submission.
These portal steps belong to the deductor, not the individual depositor. If a payer tells you to file Form 121 yourself as a normal taxpayer return, ask the payer to clarify its process; the official manual places the portal filing responsibility on the deductor.
When to submit and what happens if you wait
Timing is central because TDS can be calculated when income is credited, not only when cash reaches your account. The official manual says declarants should furnish the declaration on time to ensure that tax is not deducted in the first place and recommends doing so before the income is credited or paid, preferably at the beginning of the tax year.
A declaration submitted after a deduction has already been recorded may not automatically undo that entry. Contact the payer to ask whether the transaction can still be corrected under its process. Keep the deduction certificate and include the TDS credit when completing your tax records if the amount cannot be reversed. The declaration is prospective in practical effect: it helps the payer decide whether to withhold on covered future credits.
If you use more than one bank or have several payers, treat each payer separately. A declaration delivered to one bank does not instruct another bank, employer, tenant, company, or institution. Submit a separate declaration wherever a separate deductor would otherwise withhold, and make sure your total-income estimate includes all relevant sources.
Common mistakes and how to correct them
Using the wrong year’s form
Problem: You submit Form 15G or 15H for a tax year beginning on or after 1 April 2026.
Fix: Confirm the tax year and use Form 121 under the 2025 Act framework. Conversely, do not apply the new form to an earlier year without checking the payer’s instructions for that year.
Choosing by age alone
Problem: You assume that being under 60 automatically permits Form 15G, or that being 60 or older automatically permits Form 15H.
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Fix: Check residency, income type, estimated total income, and the nil-tax condition together. The forms are declarations of eligibility, not age certificates.
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Problem: You exclude income from other accounts or sources and therefore understate estimated total income.
Fix: Prepare a whole-year estimate before signing. Include other income that affects your final tax liability, then update your records if circumstances change.
Sending the declaration to the tax portal instead of the payer
Problem: You look for a personal return-filing menu and never give the declaration to the institution that will deduct TDS.
Fix: Submit the declaration to each payer or deductor. For Form 121, the payer files the details through its TAN login.
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Submitting after the payment is processed
Problem: The payer has already credited the income and deducted TDS.
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Fix: Submit future declarations before the next credit, ask whether the payer can correct the processed transaction, and retain the deduction records if it cannot.
Failing to retain evidence
Problem: You cannot show when or where the declaration was submitted.
Fix: Save the signed or electronic copy, submission date, payer acknowledgement, and—when Form 121 is filed by the deductor—the acknowledgement number or transaction ID that the payer shares.
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Practical examples
Resident depositor using the legacy framework
A resident individual below 60 has bank interest and other income that, after a full-year estimate, meets the applicable conditions for the earlier tax year. The individual submits Form 15G to the bank before the first interest credit and keeps the bank’s confirmation. The declaration applies to that bank; another bank requires its own submission.
Resident senior using the legacy framework
A resident individual aged 60 or older considers Form 15H. Age places the individual in the Form 15H category, but the person still checks the prescribed income and nil-tax conditions and includes all expected income before signing. If the estimated tax liability is not nil, the declaration should not be used merely because of age.
Income credited in a tax year beginning after 1 April 2026
A resident depositor asks the bank for the current process and supplies the declaration details for Form 121. The bank, as deductor, enters the information under e-File → Income Tax Forms → File Income Tax Forms → Deduction and Collection at Source (Form 121), selects the tax year and quarter, e-verifies, and records the acknowledgement number and transaction ID. The depositor keeps the bank’s receipt and checks the next statement.
Keep the declaration separate from your year-end tax work
Nil TDS does not mean there is nothing to report. At year-end, reconcile the income covered by the declaration with your bank statements, certificates, and other records. Compare the tax actually due with any TDS deducted elsewhere. If the estimate used for the declaration was wrong or your income increased, correct your tax position through the normal return and payment processes rather than relying on the old declaration.
Maintain a folder for each tax year containing declarations, payer acknowledgements, account statements, income calculations, and TDS certificates. Label each item by payer and account. This makes it easier to prove that a declaration was timely and to explain any mismatch between expected and reported withholding.
Submission checklist
- Identify the tax year and the law that governs it.
- Use Form 15G or Form 15H only for an earlier year when the payer confirms that framework; use Form 121 for a tax year beginning on or after 1 April 2026.
- Confirm residency, age category, income type, prescribed conditions, and nil estimated tax liability.
- Calculate estimated total income for the whole tax year, not just one account.
- Give the declaration to every relevant payer or deductor.
- Submit before income is credited or paid, preferably at the start of the tax year.
- Keep the declaration and payer acknowledgement.
- For Form 121, obtain the payer’s acknowledgement number or transaction ID when available.
- Check subsequent statements and address any deduction or account mismatch quickly.
- Report the income and pay any final tax that remains due, even when no TDS was withheld.
Bottom line
For an earlier tax year, submit the correct Form 15G or Form 15H to the payer before the relevant credit or payment, after checking every eligibility condition. For a tax year beginning on or after 1 April 2026, ask the payer to process the unified Form 121; the deductor files it through the e-filing portal. In either framework, the declaration prevents eligible withholding only when your estimated tax liability is nil, and it never turns taxable income into exempt income.
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