Under the Income Tax Act 2025, a new form known as Form 121 has been introduced, replacing the previously used Form 15G and Form 15H. Taxpayers must submit this form to their bank to avoid Tax Deducted at Source (TDS) for the Tax Year 2026-27.
The introduction of Form 121 aims to simplify the tax submission process. By consolidating the functions of Form 15G and Form 15H into a single document, it removes confusion about which form is applicable for different taxpayers.
The goal is to streamline the process, making it easier for individuals to manage their tax obligations and ensure accurate submissions to financial institutions.