Income Tax Dept (CBDT) to Roll Out New UIN Process for Form 121 Declarations from April 1, 2026
Payers must assign a 26-character UIN to each declaration and report them quarterly via Part B on the e-filing portal
The CBDT has introduced a new system for creating and reporting Unique Identification Numbers (UINs) linked to Form 121. The framework, which comes into effect from April 1, 2026, is based on Rule 211 of the Income-tax Rules, 2026, and section 393(6) of the Income-tax Act, 2025.
Form 121 is used by payees to declare that tax need not be deducted on certain payments. Under the new system, payers such as banks, companies, or institutions making payments must assign a 26-character UIN to each declaration received, whether in paper or electronic form.
This UIN will serve as a digital trail for each declaration, helping tax authorities monitor compliance and reduce misuse of no-deduction claims.
The UIN format includes a sequence number, the relevant tax year, and the payer’s TAN (Tax Deduction and Collection Account Number). For example, the first declaration received by a payer with TAN MUMN12345A for the tax year 2026–27 would be tagged as D000000001202627MUMN12345A.
In addition to assigning UINs, payers are required to furnish Part B of Form 121 on a quarterly basis. This includes details of all declarations received, regardless of whether tax was deducted in that quarter. The data must be submitted in the prescribed format via the Income-tax e-filing portal. This quarterly reporting obligation is expected to improve transparency and reduce the risk of under-reporting.
The notification also mandates that payees must quote their PAN in Part A of Form 121, reinforcing identity verification and linking declarations to individual tax profiles. The electronic verification process is expected to reduce manual errors and speed up processing.
The notification was issued by the Additional CIT (CPC-TDS), Kamal Deep, with approval from the Competent Authority. It has been circulated to all regional tax offices, professional bodies, and uploaded on official portals, including incometaxindia.gov.in and irsofficersonline.gov.in
If implemented effectively, the UIN framework could mark a major step toward digitizing declaration tracking, reducing compliance gaps, and reinforcing the integrity of India’s tax deduction system.
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