Form 121 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 121 is the declaration that a person gives to the payer of certain incomes so that the payer does not deduct tax. It is prescribed by rule 211 and made under section 393(6) of the Income-tax Act, 2025. This article describes it as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
Part A is filled by the person who will receive the income; Part B is the verification by the person responsible for paying it. The Notes limit the form to seven kinds of income, say the payer accepts the declaration where tax on the estimated total income will be nil, and, for most declarants, bar acceptance if the income exceeds the maximum amount not chargeable to tax. Rule 211(5) lets an income-tax authority call for the declaration for seven years.
The rule and the section
Rule 211(1) says a declaration under section 393(6) shall be furnished in Form 121. Under rule 211(2) it may be furnished electronically after verification through an electronic process, or in paper form. The person responsible for paying the income allots a unique identification number to each declaration received in a quarter (sub-rule 3) in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems), which are not in the text consulted, and reports the particulars with the number in the statement of deduction of tax under rule 219 even if no tax was deducted in the quarter (sub-rule 4). Under sub-rule (5), an income-tax authority may, before the end of seven years from the end of the tax year in which the declaration was received, require the payer to furnish it for verification or any proceeding under the Act.
Section 393(6) is the provision on declarations for receipt without deduction; see our post on section 393 for the section, and rule 211 for the rule in full. This article states nothing about the section beyond the link.
Payers who collect these declarations have to match them with their quarterly statements; our TDS compliance team can help set up the process.
Part A: to be filled by the person receiving the income
Part A is headed "Details of the declarant" and "Details of income".
| Rows | Particulars |
|---|---|
| 1 to 3 | Name, address, Permanent Account Number |
| 4 and 5 | Status (Note 3); residential status (Note 4: resident, non-resident, or resident but not ordinarily resident); row 5(a), for a resident individual, whether the age is 60 years or more at any time during the tax year |
| 6 to 8 | E-mail identity, contact number, tax year for which the declaration is made |
| 9 and 10 | Nature of income (Note 5); estimated income for which the declaration is made |
| 11, 11(a), 11(b) | Details of other Form 121 filed during the tax year (Note 6): number filed earlier and the aggregate amount of income for which they were filed |
| 12 | Aggregate amount of income for which declaration is made during the tax year (the sum of row 10 and row 11(b)) |
| 13 | Estimated total income of the tax year, including the income in row 12 (Note 7) |
| 14 | Acknowledgment number and return income for the previous two tax years |
The Declaration at the end of Part A has five limbs: the declarant states (i) that, as far as the declarant knows and believes, what is stated is correct, complete and truly stated; (ii) that the incomes are not includible in the total income of any other person under sections 96 to 99; (iii) that tax on the estimated total income in row 13 (including the income in row 12) for the tax year will be nil; (iv) that the income in row 12 does not exceed the maximum amount not chargeable to tax for the tax year (not applicable to a resident individual aged 60 years or more at any time during the tax year); and (v) that if the declaration is found false, the declarant shall be liable to prosecution or penalty under the Act. It carries place, date, signature and name. For the consequences of a false declaration, see the Act and Note 12.
Part B: verification by the person responsible for paying
Part B is headed "Verification by the person who has received declaration(s) in Part-A from the declarant(s) and responsible for paying the income in respect of which this declaration is made".
| Rows | Particulars |
|---|---|
| 1 to 7 | Payer: name, address, tax deduction and collection account number, PAN, e-mail identity, contact number, tax year |
| 8 to 14 | Declarant: name, PAN, unique identification number, date of birth or incorporation, address, e-mail identity, contact number |
| 15 to 17 | Estimated income for which declaration is made (as per row 10 of Part A); estimated total income of the declarant (row 13); aggregate income for which declaration is made during the tax year (row 12) |
| 18 | Date on which the declaration was received |
The authorised person then certifies, over name, PAN, signature, place and date, that the information pertaining to the declarant has been duly furnished.
The Notes
| Note | What it says |
|---|---|
| 1 and 2 | Name in full without abbreviation; address elements (country or region, flat or door or building, road or street or block or sector, PIN or ZIP code, post office, area or locality, district, State) |
| 3 | Who can furnish: a resident individual under section 393(6) (Table: serial number 1), or any person who is not a company, a firm or an individual covered in that row, under section 393(6) (Table: serial number 2) |
| 4 | Residential status options |
| 5 | The seven incomes: (a) payment of the accumulated balance due to an employee in a recognised provident fund; (b) insurance commission; (c) rent from a specified person; (d) income from units of a mutual fund, the Administrator of the specified undertaking or the specified company; (e) interest on securities, interest by a banking company or co-operative society carrying on banking, or by a post office, or by a specified person; (f) payment under a life insurance policy including bonus; (g) dividend, including on preference shares, declared by a domestic company |
| 6 and 7 | What to report about earlier declarations and about estimated total income |
| 8 | The payer allots a unique identification number to each Form 121 received in a quarter and reports it in the TDS statement for that quarter |
| 9 | The payer accepts the declaration where tax on the declarant's estimated total income (row 13) will be nil |
| 10 | Estimated total income is worked after deductions under Chapter VIII, set-off of loss under the head income from house property, and rebate allowable under section 156 |
| 11 | For a declarant other than a resident individual aged 60 years or more, the payer shall not accept the declaration where income of the nature in section 393(6), or its total credited or paid or likely to be, exceeds the maximum amount not chargeable to tax |
| 12 | The declarant should satisfy himself or herself that the information is true, correct and complete; a false statement attracts prosecution under section 482 |
| 13 and 14 | Pre-filling; amounts in rupees |
Note 5 gives the list as a summary and ends "Refer section 393(6) for more details"; the nature of each income is in the Act.
Need help with TDS declarations and statements?
Payers are expected to keep every declaration, allot a number and report it in the quarterly statement, whether or not any tax was deducted. If your accounts team needs help with that workflow, our TDS compliance desk can set up a clear checklist.
Key takeaways
- Form 121 has two Parts: Part A by the recipient, Part B by the payer.
- It applies to the seven kinds of income in Note 5 and is accepted only where tax on estimated total income will be nil.
- Row 12 adds the new declaration to those already given in the year.
- The payer allots a unique number per declaration and reports it, even in a quarter with no deduction.
- An income-tax authority can ask for the declaration for seven years after the tax year of receipt.
Read next
- Rule 211: Form 121 declaration, no TDS
- Form 138: quarterly statement of tax deducted on salary
- Form 140: quarterly statement of tax deducted on payments other than salary
- Section 393 of the Income-tax Act, 2025: cases where tax is not deducted
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.