For decades, saving your fixed deposit (FD) interest from the jaws of Tax Deducted at Source (TDS) meant grabbing a specific declaration form based entirely on your age. If you are preparing for the new financial year and wondering, is Form 15G valid for FY 2026-27, the answer is a hard stop.
The Income Tax Department has officially overhauled the system. Starting this year, the streamlined, digital-first Form 121 replaces 15G and 15H completely.
Whether you are a young investor or managing finances for a senior citizen, here is everything you need to know about navigating the new TDS exemption rules.
The Major Shift: What Changed?
To understand the impact of this update, you need to look at the core difference between Form 15G and Form 121.
Under the old rules, the process was fragmented. Taxpayers under the age of 60 had to submit Form 15G, while senior citizens (60 and above) were required to file Form 15H. This age-based division often caused confusion, especially for those turning 60 mid-year, leading to rejected forms and unexpected tax deductions.
Form 121 eliminates this friction entirely. It is a unified, age-neutral document. As long as your total estimated tax liability for the financial year is zero, you use this single form. Furthermore, the new Form 121 is deeply integrated with the Annual Information Statement (AIS). It automatically cross-references your PAN with your tax filing history from the last two years, making the verification process almost instantaneous for the banks.
The Digital Process: How to Claim Your Exemption
Because the government is pushing for a paperless economy, physical submissions are being phased out. If you want to know how to fill form 121 online for bank fd, the process has been designed for speed and security.
- Log into Net Banking: Access your primary bank account's internet banking portal.
- Navigate to Tax Services: Look for the "TDS Exemption" or "Tax Center" tab in your dashboard menu.
- Select Form 121: Click on the option to generate a new TDS declaration for the current financial year.
- Verify Pre-Filled Data: Your PAN, Aadhaar, and basic demographic details will auto-populate. You will only need to input your estimated total income for the year.
- Authenticate via OTP: Submit the declaration using an Aadhaar-linked OTP. Your bank will instantly generate a Unique Identification Number (UIN) confirming your exemption is active.
Note: You must submit a separate Form 121 for every bank where your FD interest exceeds the threshold.
Stay Ahead of the Tax Season
Filing your TDS declarations correctly is just one piece of the puzzle. The shift to Form 121 proves that the Income Tax Department is modernizing faster than ever, and staying compliant requires professional attention.
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