New rule of TDS: Form 15H and 15G holiday from April 1! Now to save tax you have to fill only this one form

If you or your family elders stand in long queues at the bank every year to avoid TDS deduction, then this news will blow your mind! The government has made the biggest change ever in the decades-old tax system. To simplify the process under the Income Tax Act 2025, Form 15G and 15H have been consigned to the pages of history forever. From April 1, these old paper hassles will now be replaced by a new and superfast ‘Form 121’ Will take it.

Form 15G and 15H discontinued, what is the new Form 121?

Till now there was a big headache of filling the age wise forms in the banking system. People under 60 years of age had to file 15G to save TDS on their interest income, while 15H was required for senior citizens. Often people were confused as to which form they had to fill and many times tax was deducted due to wrong form being submitted. To end all this confusion, the government has combined both the forms into a single document – ​​’Form 121′. Now, whatever the age, just one form will do the job.

Bank system will work automatically

The biggest revolutionary advantage of this change is that now you will not need to remember the rules according to your age. The elderly often feared making a mistake in choosing the form. But now ‘Form 121’ is completely based on smart technology. As soon as you submit this new form to your bank or financial institution, the backend system of the bank will automatically decide how much tax exemption you should get based on your date of birth. That is, form one, but benefits will be available automatically according to age.

Who will get the benefit?

Even though the form has changed, the basic rules of tax exemption are the same as before. Only those people can avail the benefit of Form 121 whose total tax liability is zero. That is, if your total annual income is less than the basic exemption limit set by the government, then only you will be able to fill this form. This form is a kind of declaration which tells the bank that your earnings do not come under the ambit of tax, hence your TDS should not be deducted.

New rules will apply on earnings from these sources

The thing to note is that the name of the form has changed, but not the sources of income covered under it. If you earn interest from bank fixed deposit (FD) or savings account, then Form 121 will be useful for you. Apart from this, now only Form 121 will be valid to save TDS on pension, mutual fund returns, dividends received from companies, life insurance (LIC) maturity payment and rental income.