In a significant compliance change aligned with the new tax regime, the Employees Provident Fund Organisation (EPFO) has directed all its field offices to transition from the existing Forms 15G and 15H to a new consolidated declaration ‘Form 121’, effective April 1, 2026.
This move follows the implementation of the Income Tax Act, 2025, which replaces the decades-old Income-tax Act, 1961 and introduces a more streamlined approach to tax declarations for individuals seeking exemption from Tax Deducted at Source (TDS).
What has changed?
As per the official EPFO order dated April 13, 2026, “the erstwhile Form 15G and Form 15H have been replaced by a single, consolidated written declaration in Form 121”.
Earlier, taxpayers had to choose between Form 15G (for individuals below 60 years) and Form 15H (for senior citizens aged 60 and above).
This distinction often created confusion and added compliance complexity. The new Form 121 removes that distinction entirely.
What is Form 121 and who can use it?
Form 121 is a unified declaration form that allows eligible taxpayers to declare that their final tax liability for the financial year is NIL, thereby ensuring that no TDS is deducted on specified incomes.
As per the EPFO document: “The declarant, who is a resident, must ensure that their expected final tax liability for the year is NIL and duly fill all the rows in Part A of the Form No.121 and sign it.”
It is important to note filing Form 121 is not mandatory and it is meant only for those who do not want TDS to be deducted.
What types of income does it cover?
Form 121 applies to a wide range of incomes, including interest on deposits, dividends, rental income, insurance commission, mutual fund payouts and provident fund withdrawals (where applicable).
This makes it a broader and more inclusive declaration tool compared to the earlier forms.
Key compliance requirements for EPFO offices
The EPFO has laid down strict procedural requirements for handling Form 121:
1. Unique Identification Number (UIN):
Each Form 121 must be assigned a 26-character UIN, which includes sequence number, financial year and TAN of the payer.
“The RO (as the payer) must allot a Unique Identification Number (UIN) to every Form 121 received.”
2. Monthly reporting:
All forms received must be consolidated and uploaded by the 7th of the following month and through the Income Tax Department’s e-filing portal.
3. Quarterly reporting:
UINs must also be quoted in the quarterly TDS Return (Form 140)
Digital filing in the works
To ease compliance, EPFO has indicated that a digital filing system is being developed: “ISD has been requested to provide a facility for the declarant members to digitally e-sign and file the Form No. 121 online.”
Until this system is operational, physical signed forms can be used and these may be uploaded and processed for reporting purposes.
What happens to existing 15G/H submissions?
The EPFO has clarified that claims already filed with Form 15G/15H after April 1, 2026 will not be rejected. However, Form 121 must be collected separately from such members. This ensures a smooth transition without disrupting ongoing claims.
Why this change matters
The introduction of Form 121 is part of a broader effort to modernise tax compliance:
Simplified process: One form instead of two
Reduced ambiguity: No need to determine eligibility based on age
Better tracking: UIN-based system improves transparency
Digital integration: Aligns with e-filing ecosystem
Overall, the move is aimed at reducing compliance burden while strengthening reporting standards.
Warning on non-compliance
The EPFO has also issued a clear caution: “Non-compliance with the provisions of the new IT Act, including missing UINs or incorrect reporting, may attract penalties.” Regional offices have been asked to strictly follow the new guidelines to avoid regulatory issues.
What EPFO has asked its offices to do
The organisation has directed all zonal and regional offices to sensitise members about Form 121, ensure timely collection and reporting, avoid returning claims filed with old forms, and transition fully to the new system.
Summing up…
The shift to Form 121 marks a major procedural change for taxpayers and EPFO subscribers alike. While the intent is to simplify declarations and improve efficiency, the new system also brings tighter reporting requirements and stricter compliance norms.
For individuals who rely on Form 15G or 15H to avoid TDS—especially for PF withdrawals and interest income—understanding and adopting Form 121 will now be essential from FY 2026-27 onwards.