What do you understand by Form 121?

Form 121 is a common self-declaration form for everyone who is eligible to request exemption from TDS. Form 121 can be submitted by any resident taxpayer, irrespective of age.

Who can file Form 121?

You can file Form 121 if:

• You are a resident individual (including senior citizens).
• You are a Hindu Undivided Family (HUF).
• You are an eligible entity, like a trust, as long as your income is below the taxable limit.

Key Features of Form 121

1. It replaces both Forms 15G and 15H to simplify the compliance process.
2. It helps to avoid TDS on EPF withdrawals exceeding Rs 50,000 (or a higher rate if PAN is not linked).
3. Generates a Unique Identification Number (UIN) for every submission to ensure transparency and tracking.
4. Requires ITR acknowledgement details from the previous two financial years to determine eligibility.
5. Available online through the official Income Tax Department portal, making the process convenient and accessible.

What's New for EFP Subscribers?

Starting April 1, 2026, Employees’ Provident Fund (EPF) members will be required to submit Form 121 every financial year if they want to avoid Tax Deducted at Source (TDS) on eligible withdrawals or interest income.

In case the form is not submitted, TDS will be deducted automatically if the withdrawals exceed the prescribed limit

This new rule is aimed at easing the compliance process and reducing the confusion among taxpayers. Earlier, individuals had to check their eligibility and choose between two different forms, which led to errors and uncertainty. The single form is expected to simplify the process and make tax compliance easier.

Here’s what you need to do:

1. Use Form 121 instead of Form 15G or 15H from now on.
2. You must submit this form every financial year if you want to avoid TDS (tax deduction) on the following:

• EPF withdrawals
• Interest earned on deposits

3. If you do not submit the form, the bank or EPF office will deduct TDS on withdrawals above               Rs 50,000.