The Income-tax Department under the new Income Tax Act, 2025 has issued Notification No. 01/CPC (TDS)/2026 dated 28th March, 2026, specifying the procedure, formats and standards for generation and allotment of Unique Identification Number (UIN) in respect of Form No. 121, along with quarterly furnishing of Part B by the payer, applicable from 1st April, 2026.
As per Section 393(6) of the Income-tax Act, 2025, no deduction of tax is required in specified cases where a declaration in Part A of Form No. 121 is furnished by the payee to the payer in accordance with Rule 211 of the Income-tax Rules, 2026.
The payer is required to enable the payee to furnish such declaration either in paper form or electronically after due verification. The declarant is required to mandatorily quote PAN in Part A of Form No. 121.
Allotment of Unique Identification Number (UIN)
The notification prescribes that:
- The payer shall allot a 26-character Unique Identification Number (UIN) to each declaration received in Form No. 121
- The UIN shall consist of three components:
- Sequence Number: Ten alphanumeric characters beginning with the letter “D” followed by nine digits
- Tax Year: Six digits representing the relevant tax year (e.g., 202627)
- TAN of the Payer: Ten-character alphanumeric TAN
Illustration
For example, where the payer’s TAN is MUMN12345A, the UIN for the first declaration received for Tax Year 2026-27 shall be:
D000000001202627 MUMN12345A
Declarations Received in Paper Form
Where Form No. 121 is received in paper form:
- The payer shall digitize the declaration
- UIN shall be allotted in the same manner
- Sequence numbers shall continue in the same running series as electronic declarations
Sequence Number Reset
- The sequence number shall reset to “1” for each TAN at the beginning of every tax year
Furnishing of Part B of Form No. 121
The payer is required to:
- Furnish Part B of Form No. 121 containing details of declarations received
- Include both digitized and electronically received declarations
- Submit the details within 7th Day of the month following the month in which the declaration is received by the ‘Payer’. Refer Section 393(7)
- Upload the prescribed file format on the Income-tax e-filing portal
Additionally:
- The payer shall furnish the statement of deduction of tax under Rule 219
- Such statement shall include details of declarations along with the allotted UIN
- This requirement applies even where no tax has been deducted during the quarter
Download the Official Notification:
To read the full details of Notification No. 01/CPC(TDS) /2026, dated 28th March 2026, you can download the official document from the following link:
Download Notification Document
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