Income-tax Systems directorate sets 26-character UIN for Form 121 declarations

The Directorate of Income-tax (Systems) of the Central Board of Direct Taxes has specified how payers must number and report the Form No. 121 declarations they receive from payees who claim payment without tax deducted at source (TDS). Notification No. 01/CPC(TDS)/2026, dated 28 March 2026, applies from 1 April 2026.

What has changed

The notification explains that section 393(6) of the Income-tax Act, 2025 provides for no deduction of tax in certain cases where the payee furnishes a declaration in Part A of Form No. 121 to the payer, as per rule 211 of the Income-tax Rules, 2026. The payer must let the payee furnish it on paper or in electronic form after verification through an electronic process, and the declarant must quote its PAN.

Each declaration received during the tax year must get a 26-character unique identification number (UIN) made up of three fields:

In the notification’s illustration, a payer with TAN MUMN12345A gives its first declaration for Tax Year 2026-27 the UIN D000000001202627 MUMN12345A.

The other requirements are:

• Declarations received on paper must be digitised and given a UIN that continues the same running sequence used for electronic declarations.
• The sequence restarts at 1 for each TAN of the payer at the beginning of every tax year.
• The payer must furnish Part B of Form No. 121, with details of the declarations received in Part A, on the income-tax e-filing portal (www.incometax.gov.in) in the prescribed file format, within the timelines prescribed under section 393(7).
• Under rule 211, the payer must also include the declarations received in each quarter, with their UINs, in its statement of deduction of tax under rule 219, even if no tax was deducted in that quarter.

Who is affected

Any person responsible for paying income or sums covered by section 393(6) who receives Form No. 121 declarations, and the payees who submit them. The notification does not list the types of income covered by section 393(6).

What this means for businesses

Companies and other payers that accept these declarations will need a numbering system that follows this format for each TAN, a way to digitise paper declarations into the same series, and a process to file Part B and carry the UINs into TDS statements. In practice, a payer with more than one TAN will run a separate series for each, since the UIN includes the TAN and the sequence resets per TAN.

The notification does not restate the deadline for Part B; it refers to the timelines prescribed under section 393(7). Finance teams should confirm the due dates with their adviser or the e-filing portal. Payees must quote their PAN in Part A of the form.

What to do now

• Set up UIN numbering per TAN in the D-plus-nine-digit format, restarting at 1 each tax year.
• Digitise any paper Form No. 121 declarations and number them in the same series.
• File Part B of Form No. 121 on the e-filing portal within the prescribed timelines.
• Report declarations and UINs in each quarterly TDS statement, including quarters with no deduction.

Source: Notification No. 01/CPC(TDS)/2026.