Form 15H Scrapped: What Senior Citizens Should Know About The New Form 121

Still using the Form 15H for TDS exemption? Here is an update! If you are a senior citizen who receives income from fixed deposits, then this change affects you. Until now, you must have used Form 15H to avoid TDS on your income from fixed deposits. This form has helped you to have a better cash flow as well.

However, from April 2026, the situation changes, and Form 15H is scrapped, replaced by a new form to be declared by you. The new form you will have to submit is Form 121. This form will help you to have a better experience, as you will no longer have to submit multiple forms for different taxes.

This change affects your income from fixed deposits, which you might be receiving as a senior citizen. Even small deductions can make a big impact on your budgeting, and hence, it is better to understand the new process to help you better plan for the coming days and to ensure you receive the full income from your fixed deposits. The new form you will have to submit is Form 121, which will help you to claim the exemption you are eligible for.

What Was Form 15H?

Before this new update, you may have used Form 15H to avoid TDS. This is a self-declaration form. You may have submitted this form to banks or financial institutions. This way, you could avoid tax deduction on eligible income.

1. Purpose

The purpose behind Form 15H is simple. By using this form, you could declare that your taxable income is below a certain limit. Based on this, banks will not deduct TDS. This way, you could earn your full interest earnings.

2. Eligibility (age 60+)

To submit Form 15H, you may have to be 60 years or older. Also, your total taxable income may have to remain below the exemption limit. Additionally, you may need a valid PAN.

3. Where it was used

You may have submitted Form 15H in the following situations:

- Fixed deposit interest from banks

- Post office deposit schemes

- Corporate bond interest

- NBFC deposit income

This enabled you to enjoy a senior citizen TDS exemption on FD interest without any unnecessary deductions.

Why Form 15H Has Been Scrapped?

You might be curious to know why this has been done. The government is aiming to simplify tax compliance. At the same time, it is aiming to reduce confusion.

1. Simplification of tax compliance

You might have noticed that earlier, there were different forms to be filled out for different purposes. This made the process slightly complex for you. For instance, senior citizens might find this complex. The government has now made it easier for you to comply with tax regulations through the introduction of a single declaration form.

2. Removing duplication with Form 15G

Form 15G and Form 15H are almost similar in purpose. The only difference is that one is for senior citizens and the other is for others. The government has now removed this duplication and made Form 15G one form for all. This has removed unnecessary duplication.

3. Digitisation push

The government is trying to promote digital tax compliance. Having a single form for all has been helpful for you and has also been a step towards digital tax compliance.

What Replaces Form 15H?

Form 121 increases the scope of coverage, which was not included in the earlier forms. It can support multiple income types, and it can also be submitted electronically, which increases the level of convenience.

How Senior Citizens Can Avoid TDS Now

Even after the scrapping of Form 15H, you can still avoid TDS. The process is still simple. You just need to follow the new steps by using Form 121.

1. New declaration process

Now you need to submit Form 121 in place of Form 15H. You can submit it online, as most banks offer online services. You can submit it offline as well if needed. You need to submit it at the beginning of the financial year. This is to avoid TDS on the first interest credit. This is an important part of understanding how to submit Form 121 as a senior citizen.

2. Income eligibility rules

You can only submit Form 121 if your total taxable income is below the basic exemption limit. This includes your interest income, pension, and other incomes.

You need to calculate your income before submitting Form 121. This is to adhere to the rules of Form 121 income limits for senior citizens.

3. Key conditions to check

Before filing Form 121, you need to check the following:

• Your PAN is valid and linked
• Your Income Declaration is accurate
• Submit your form before interest is credited
• Renew your declaration every financial year

Impact On Retirement Income

This can have implications for the way you plan your income in the future. Senior citizens heavily rely on the income generated through interest. Even if the deductions are low, the reduction in cash flow can be significant.

1. Fixed deposit interest

Fixed deposits are the most common investments for senior citizens. They use the income generated through fixed deposits for their day-to-day expenses. If there are any deductions due to the TDS, the income generated through the fixed deposits will be reduced. By filing the Form 121 on time, the income generated through the fixed deposits will be available in full.

2. Pension-linked investments

There are certain pension-linked investments that generate income, which is subject to taxation. This includes annuity plans and debt instruments. If the income generated through these investments is not declared, there is a chance of the TDS being automatically deducted.

3. Monthly income planning

A constant income is necessary for proper retirement planning. TDS helps in generating liquidity. It also helps in avoiding the need to wait for refunds.

For instance, consider the case of MMrsRao. She receives an income of INR 60,000 annually from her fixed deposits. She files Form 121 and receives her full interest.

Conclusion

This is important to you as a senior citizen. The new system is introduced through Form 15H scrapped from April 2026. The process is new, but your ability to avoid TDS is still there.

Form 121 has made the declaration easier and more organised. Now there is less confusion, and it is digital-friendly too. Just ensure that your income information is correct and submitted on time. By knowing this update, you can protect your interest income. At the same time, this update can be useful for planning your finances better.

Are you planning to invest in other assets apart from fixed deposits? Grip Invest provides curated fixed income opportunities that can be useful for generating stable and predictable income across different instruments.

FAQs

1. Is Form 15H scrapped?

Form 15H has been scrapped from April 2026 onwards as part of tax compliance changes. As a senior citizen, you can no longer submit this form. Instead, you can avail yourself of the benefits of Form 121 concerning the TDS exception.

2. What is the new form replacing 15H?

The Form 15H is being replaced by Form 121 from April 2026. The Form 121 is the new unified declaration form. If you are eligible, you can declare income and avoid TDS deductions.

3. Can senior citizens still avoid TDS?

TDS can be avoided by senior citizens with an eligible income. You can submit the form for benefits, but ensure that your total taxable income is below the exemption limit.

4. How to submit Form 121?

The Form 121 can be submitted through an online portal or via your bank or financial institution. You can also apply offline. To submit the form, you have to provide your PAN card details and your estimated income.

Author: Grip Invest Editorial Team The Grip Invest Editorial Team is a group of Chartered Accountants, MBA (Finance) graduates, and Qualified Research Analysts dedicated to helping you invest smarter. We dive deep into India's fixed income landscape to deliver content that is accurate, up-to-date, and easy to understand. Whether you're exploring bonds, fixed deposits, or other fixed income opportunities, our guides cut through the noise and give you the clarity to make better financial decisions.

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