If I expect an interest payment of ₹5,000 but receive less, I would first check whether tax has been deducted. This deduction is called TDS, or tax deducted at source. It means the payer has taken out tax before sending me the remaining interest.

However, I may not owe any tax for the year. If I meet the required conditions, a declaration can help me receive eligible interest without TDS.

There is one update to know before filling it out. From 1 April 2026, Form 121 replaced Forms 15G and 15H. So, while I may search for “15g form online”, Form 121 is now the relevant form for the current tax year.

What does the form actually do?

The form tells the bank or interest payer that I qualify to receive certain payments without tax being deducted.

It does not make my interest tax-free. Interest still counts towards my income wherever applicable. The declaration simply helps prevent TDS when I meet the conditions and my estimated tax payable is zero.

What would I check before applying?

I would begin by adding up the income I expect during the year. This includes interest from different investments, along with salary, pension, rent and other income.

For a resident individual below 60, two conditions matter. The estimated tax payable must be zero, and the combined income covered by these declaration rules must stay within the applicable basic exemption limit.

For a resident individual aged 60 or above during the tax year, the estimated tax payable must also be zero. However, the additional ceiling on the income covered by the declaration does not apply.

This is why I would check eligibility before submitting the form, even if I have no salary income.

How would I submit it online?

I would start with the official website or app of the institution paying the interest. The steps may differ, but the process generally involves these checks:

  1. Find the declaration option. I would look for Form 121 or the TDS declaration section. Some banks accept it through internet banking and their mobile app.
  2. Keep the details ready. I would need my PAN, investment details and income estimates. Checking these beforehand makes the form easier to complete.
  3. Enter the income amounts carefully. Interest from one FD is only part of my income. If the form asks for total income, I would include my other income too.
  4. Mention earlier declarations. If I have already submitted forms during the same year, I would provide the details requested.
  5. Review and save confirmation. After checking the entries, I would complete the verification and keep the acknowledgement.

What if I receive interest from bonds?

For bonds, I would check the process with the issuer or its authorised registrar. A form submitted to my bank should not be assumed to cover payments from another institution. The declaration must reach the appropriate payer through its accepted process.

I would also submit it before interest is credited or paid, preferably early in the year. If tax has already been deducted, a later declaration does not automatically bring it back. I may need to claim any excess tax through my income tax return. Keeping the submission confirmation and checking the next interest payment would help me spot any issue early.