A major tax-related change for senior citizens has come into effect from April 1, 2026. The old Form 15H, which senior citizens used to avoid TDS (Tax Deducted at Source), has been discontinued. It is now replaced by a new Form 121.
This change is part of the Income Tax Act 2025, which aims to simplify tax procedures and reduce the hassle of filing multiple forms.
Single Form for All Eligible Taxpayers
Earlier, there were two separate forms:
Form 15G – for taxpayers under 60
Form 15H – for senior citizens
Now, both forms are merged into Form 121, which can be used by all eligible taxpayers. Senior citizens no longer need to remember different forms. The system will automatically apply the correct age-based rules.
When to Use Form 121
You can submit Form 121 if your total tax liability is zero and your income is below the basic exemption limit. This form is given to your bank or financial institution so that TDS is not deducted from your income.
Types of Income Covered
Form 121 applies to the same types of income as before, including:
Interest from bank FDs and savings accounts
Pensions
Income from mutual funds
Dividends
Insurance payouts
Rental income
Overall, this change is a big step toward simplifying tax procedures for senior citizens, reducing paperwork, and making it easier to avoid TDS.
