Banking and tax-related processes have become much easier for crores of senior citizens and pensioners as the central government has implemented the new Income Tax Act, 2026, effective from Wednesday, April 1, 2026. Many changes have been introduced under the new act, with the most important for senior citizens being the introduction of Form 121. This new form will significantly reduce paperwork, as senior citizens had to fill out two different declaration forms so far.
Form 15G and Form 15H replaced
For a long time, the income tax system required filing different forms based on age. Ordinary citizens used Form 15G, while senior citizens over 60 required Form 15H. This has now been completely eliminated as the government has introduced Form 121. This is a unified system that anyone can use.
What is Form 121?
Form 121 is a self-declaration form introduced under the Income Tax Act, 2025. Under Rule 211 of the Income Tax Rules, 2026, both senior citizens and other individuals will use a single form to declare that their income is below the taxable limit, reducing paperwork and simplifying the process.
PAN card mandatory
However, to promote digital transparency, the government has added some stricter requirements to Form 121. It is now mandatory to provide a PAN number when filling this form. Submitting this form without a PAN will be considered invalid, and the bank may deduct TDS at higher rates. Furthermore, each submitted form will be assigned a Unique Identification Number (UIN). This is a special 26-digit code generated by the bank or payer. This UIN will be reported directly to the Income Tax Department, eliminating the possibility of tax evasion. Furthermore, the government will monitor every transaction. Banks will also be required to complete Part B of the form and report this information in their regular TDS returns.
From pension to mutual funds, everything is in one form
The scope of Form 121 has been broadened to ensure senior citizens don’t face any investment challenges. It covers major income sources such as bank interest, fixed deposits, pension payments, and provident fund (PF) withdrawals. Furthermore, TDS exemptions can now be claimed on mutual fund earnings, dividends, insurance payments, and rental income through this form.
