Form No. 121 UIN Generation – Procedure, Formats and allotment: Rules 211 of Income Tax Rules, 2026 The Form No. 121 UIN Generation process has been formally updated by the Central Board of Direct Taxes (CBDT) through Notification No. 01/CPC(TDS)/2026. This crucial notification outlines the new procedures, formats, and standards for generating and allotting a Unique Identification Number (UIN) for Form No. 121, along with guidelines for the quarterly furnishing of Part B by the payer. These changes are significant for all entities involved in tax deduction at source (TDS) and aim to streamline compliance.
Understanding the Form No. 121 UIN Generation Procedure
Section 393(6) of the Income-tax Act, 2025, allows for no tax deduction in specific scenarios where a declaration in Part A of Form No. 121 is provided by the payee to the payer, as per Rule 211 of the Income-tax Rules, 2026. The payer, responsible for disbursing income or sums under section 393(6), must facilitate the payee’s declaration, either in paper or electronic format, following due electronic verification. It is mandatory for the declarant to quote their Permanent Account Number (PAN) in Part A of Form No. 121, in accordance with section 397 of the Act.
A unique identification number is to be allotted by the payer for each declaration received, whether in paper or electronic form, as per sub-rule (3) of Rule 211. The payer is also required to furnish Part B of Form No. 121, detailing all declarations received in Part A, within the prescribed timelines under section 393(7) of the Income-tax Act, 2025. This submission must be in the specified file format on the Income-tax e-filing portal (www.incometax.gov.in).
Furthermore, clause 4 of Rule 211 mandates that the payer must furnish a statement of tax deduction, as referred to in Rule 219. This statement should include particulars of declarations received during each quarter of the tax year, along with the unique identification number mentioned in sub-rule (3) of Rule 211, even if no tax was deducted in that quarter. This ensures comprehensive reporting and tracking of all relevant declarations.
Key Components of Form No. 121 UIN Generation
In exercise of the powers conferred under sub-rule (3) of Rule 211 read with sub-rule (2) of Rule 332 of the Income-tax Rules, 2026, the Director General of Income-tax (Systems) has specified the following procedure, formats, and standards for the generation and allotment of UIN in respect of Form No. 121 and the quarterly furnishing of Part B thereof by the payer.
Generation and Allotment of Unique Identification Number (UIN):
The payer is required to allot a 26-character UIN to each declaration (Part A of Form No. 121) received during the tax year. This UIN is structured with three distinct fields:
- Sequence Number: This consists of ten alphanumeric characters, starting with the letter “D” followed by nine digits (e.g., D000000001).
- Tax Year: Represented by six digits, indicating the tax year for which the declaration is furnished (e.g., for Tax Year 2026-27, it would be 202627).
- Tax Deduction and Collection Account Number (TAN) of the payer: This is the ten alphanumeric characters of the payer’s TAN (e.g., MUMN12345A).
Illustration: A UIN allotted by a payer (TAN: MUMN12345A) for the first declaration (Part A of Form No. 121) received for Tax Year 2026-27 would be: D000000001202627MUMN12345A.
Where a declaration in Form No. 121 is received in paper form, the payer must digitize it and allot a UIN in accordance with the above paragraph. Such declarations will bear sequence numbers that continue the running sequence number series used for electronically furnished declarations. The running sequence number series, as referred to in clause 2.1(a), will be reset to “1” for each TAN of the payer at the beginning of every tax year.
Timeline for Form No. 121 UIN Generation Compliance
Payers must furnish Part B of Form No. 121, containing details of declarations received in Part A (whether digitized or electronic), within the prescribed timelines under section 393(7) of the Income-tax Act, 2025. This must be done in the specified file format on the Income-tax e-filing portal (www.incometax.gov.in). This notification officially applies from April 1, 2026.
Full Text of Notification No. 01/CPC(TDS)/2026
F.No.: CB/657 /2026-ITO(SYSTEMS)(CPC-TDS)-2-DEL
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems) New Delhi.
Notification No. 01/CPC(TDS)/2026
New Delhi, 28th of March 2026
Subject: Procedure, formats and standards for generation and allotment of Unique Identification Number (UIN) in respect of Form No. 121 and quarterly furnishing of Part B thereof by the payer – regarding
Section 393(6) of the Income-tax Act, 2025 (hereinafter referred to as “the Act”) provides for no deduction of tax in certain cases wherein declaration in Part A of Form No. 121 is furnished by the payee to the payer as per Rule 211 of the Income-tax Rules, 2026 (hereinafter referred to as “the Rules”). The person responsible for paying any income or sum of any nature referred to in section 393(6) of the Act (hereinafter called “payer”) shall enable the payee to furnish the declaration either in paper form or in electronic form after due verification through an electronic process. The declarant shall mandatorily quote its PAN in the declaration in Part A of Form No. 121 in accordance with the provisions of section 397 of the Act.
A unique identification number shall be allotted under sub-rule (3) of Rule 211 of the Rules by the payer to each declaration received in paper or in electronic form. The payer shall furnish Part B of Form No. 121 containing the details of declarations received in Part A of Form No. 121 (whether digitized or electronic) within the prescribed timelines under the provisions of section 393(7) of the Income-tax Act, 2025 in the prescribed file format on the Income-tax e filing portal (www.incometax.gov.in). Further, clause 4 of Rule 211 provides that the payer shall also furnish statement of deduction of tax referred to in Rule 219 containing the particulars of declaration received by him during each quarter of the tax year along with the unique identification number referred to in sub-rule (3) of Rule 211, regardless of the fact that no tax has been deducted in the said quarter.
In exercise of the powers conferred under sub-rule (3) of Rule 211 read with sub-rule (2) of Rule 332 of the Income-tax Rules, 2026, the Director General of Income-tax (Systems) hereby specifies the following Procedure, formats and standards for generation and allotment of Unique Identification Number (UIN) in respect of Form No. 121 and quarterly furnishing of Part B thereof by the payer.
2. Generation and allotment of Unique Identification Number (UIN):
2.1 The payer shall allot a 26-character UIN to each declaration {Part A of Form No. 121) received by him during the tax year. The UIN shall consist of the following three fields, namely:
(a) Sequence Number – Ten alphanumeric characters beginning with the letter “D” followed by nine digits (for example: D000000001);
(b) Tax Year – Six digits representing the tax year for which the declaration is furnished (for example, for Tax Year 2026-27, it shall be 202627);
(c) Tax Deduction and Collection Account Number (TAN) of the payer -Ten alphanumeric characters (for example, for TAN: MUMN12345A it shall be MUMN12345A).
Illustration: UIN to be allotted by the payer (TAN: MUMN12345A) to the first declaration (Part A of Form No. 121) received by him for Tax Year 2026-27 shall be, –
D000000001202627 MUMN12345A
2.2 Where the declaration in Form No. 121 is received in paper form, the payer shall digitize such declaration and allot a Unique Identification Number (UIN) in accordance with para 2.1 above. Such declarations shall bear sequence numbers in continuation to running sequence number series as used for electronically furnished declarations.
2.3 The running sequence number series referred to in clause 2.1(a) above shall be reset to “1” for each TAN of the payer at the beginning of every tax year.
3. Furnishing of Part B of Form No. 121 by the payer to the Income-tax Authority
The payer shall furnish Part B of Form No. 121 containing the details of declarations received in Part A of Form No. 121 (whether digitized or electronic) within the prescribed timelines under the provisions of section 393(7) of the Income-tax Act, 2025 in the prescribed file format on the Income-tax e-filing portal (www.incometax.gov.in).
4. This notification shall apply from 01 April 2026.
This issues with the approval of the Competent Authority.
(Kamal Deep)
Addl CIT (CPC-TDS)-1
CPC-TDS
COMMENTS