TDS Rules Change 2026: Effective April 1, 2026, a major tax-related change has come into force for senior citizens. The Form 15H—which has hitherto been used to seek exemption from TDS (Tax Deducted at Source)—will be discontinued.
Add informalnewz.com as a Preferred Source
TDS Rules Change 2026: Effective April 1, 2026, a major tax-related change has come into force for senior citizens. Form 15H—which has hitherto been used to seek exemption from TDS (Tax Deducted at Source)—will be discontinued. It will now be replaced by a new Form 121. This change is being implemented under the Income Tax Act, 2025, with the objective of simplifying the tax process and eliminating the hassle associated with multiple forms.
Now One Form Does It All
Previously, there were two separate forms: Form 15G, intended for individuals under the age of 60, and Form 15H, for senior citizens. However, these two have now been merged into a single new form—Form 121—which will be applicable to all eligible taxpayers. Consequently, senior citizens will no longer need to remember a separate form; the system itself will automatically apply the appropriate rules based on the individual’s age.
When can Form 121 be used?
If an individual’s total tax liability is nil and their income falls below the basic exemption limit, they can avoid TDS deduction by submitting Form 121. This form is submitted to a bank or financial institution to ensure that they do not deduct tax on your income.
To which types of income does this apply?
Form 121 will cover the same categories of income as before—such as interest from bank Fixed Deposits (FDs) and savings accounts, pensions, income from mutual funds, dividends, insurance payouts, and rental income. Overall, this change represents a step aimed at simplifying the process for senior citizens. It will reduce their paperwork burden and make it easier for them to avoid TDS deductions.
