How to Fill the Form 121 for SBI FD

What is Form 121?

Form 121 is a self-declaration form prescribed under the Income Tax Act 2025. From 1 April 2026 onwards, Form 121 is used instead of Forms 15G and 15H. Once a valid Form 121 has been received, the payer is not required to deduct TDS on eligible payments, such as fixed deposit interest, being one such example. All qualifying resident taxpayers, irrespective of age, use Form 121. This has replaced the separate declarations that were previously used for different age groups.

Who Can Submit Form 121? 

If an eligible resident taxpayer expects to have no tax liability for the tax year, then they may use Form 121. The eligibility requirements are different for each type of taxpayer.

• Resident Individuals: This includes resident individuals irrespective of age, subject to the prescribed eligibility conditions. The estimated tax liability for the tax year should be nil. The declaration should satisfy the conditions prescribed under the Income-tax Act, 2025 and the applicable rules.
• HUFs and Other Eligible Assessees: This form can be filed by resident individuals and Hindu Undivided Families (HUFs) whose estimated tax liability for the year is nil.

Important Note: Form 121 must be filed separately with each bank or financial institution from which you earn TDS-eligible income. A single Form 121 submitted to SBI does not cover FD interest at other banks.

Who Cannot Submit Form 121? 

Eligible resident taxpayers can only use Form 121. You are prohibited from filling out this form for below mentioned categories:

• Non-Resident Indians (NRIs): NRIs are not eligible to fill out Form 121. It can be filed out only by the resident taxpayer.
• Not Allowed for Companies: A Company taxpayer cannot file Form 121.
• Partnership Firms: Including Limited Liability Partnerships (LLPs), may not file Form 121.
• Taxpayers Having Tax Liability: You may not file Form 121 if your estimated tax liability for the tax year is more than nil.
• Persons Making False Declarations: Make sure information is correct because it may lead to penalties and other consequences under the Income Tax Act 2025.

Steps to Fill Form 121 Online for an SBI FD

One can easily fill out the Form 121 online. It should be filled in two parts part A and Part B. Part B is usually filled by the respective bank. Key steps to fill the form are:

• Fill Personal Details: Fill out your personal details such as full name, registered email and mobile number. Details should be as per the official documents only such as PAN card.
• Enter PAN and Residential Status: Enter PAN and choose the applicable taxpayer type (Individual/ HUF) and your Residential status as Resident.
• Select Category: Select the applicable taxpayer category and complete the required declaration as prescribed in Form 121.
• Estimated Total Income: Report estimated total income for the tax year (interest income and other income that is eligible for inclusion). Also, state if you have filed Form 121 with any other deductor in the same year.
• Enter ITR Details: Fill in the acknowledgement numbers of the Income Tax Returns filed in the last two tax years (if applicable).
• Fill in the Declaration: Enter date and place, check and submit the declaration.
• Bank Verification: Part B is completed by SBI after processing your declaration. You do not need to fill this section. 

Note: If you do not wish to submit Form 121 online, you can also submit a signed physical copy at your SBI branch. Banks continue to accept paper forms for eligible customers.

Documents Required Before Filling Form 121

Keep the following documents handy before filing the Form 121:

What Happens If You Don't Submit Form 121? 

In case of failure in submission of Form 121 on time, bank may deduct TDS from your fixed deposit interest. This may reduce the amount credited to your bank account. If TDS has already been deducted and your final tax liability for the tax year is nil, you may claim a refund while filing your Income Tax Return (ITR), subject to the applicable tax provisions. One has to make sure that submission of the form 121 is on time to avoid unnecessary TDS deduction. 

Key Takeaways

Forms 15G and 15H have been merged into a single form called Form 121 and are now replaced. Form 121 now enables the eligible resident taxpayer to opt for exemption from TDS on interest income from SBI fixed deposits, if the total estimated tax liability for the tax year is zero. You can also compare the latest FD interest rates before investing.