The Central Board of Direct Taxes (CBDT) has issued Notification No. 01/CPC(TDS)/2026 dated March 28, 2026, prescribing detailed procedures, formats, and standards for the generation and allotment of a Unique Identification Number (UIN) in respect of declarations furnished in Form No. 121, along with the mechanism for quarterly furnishing of Part B of the said form by the payer.
Background and Legal Framework
The notification has been issued in accordance with the provisions of Section 393(6) of the Income-tax Act, 2025 (hereinafter referred to as “the Act”) read with Rule 211 and Rule 332 of the Income-tax Rules, 2026.
Section 393(6) provides that no deduction of tax shall be made in certain cases where a declaration in Part A of Form No. 121 is furnished by the payee to the payer. Such declarations may be furnished either in paper form or electronically, subject to verification through an electronic process.
The payer, being the person responsible for paying any income or sum, is required to enable the payee to furnish such declarations. It has been further mandated that the declarant shall compulsorily quote their Permanent Account Number (PAN) in the declaration in accordance with Section 397 of the Act.
Allotment and Structure of Unique Identification Number (UIN)
As per sub-rule (3) of Rule 211, every payer shall allot a 26-character Unique Identification Number (UIN) to each declaration received during the financial year.
The UIN shall consist of the following three components:
- Sequence Number: A ten-character alphanumeric code beginning with the letter “D”, followed by nine digits (e.g., D000000001).
- Tax Year: A six-digit number representing the relevant tax year for which the declaration is furnished (e.g., for Tax Year 2026–27, it shall be 202627).
- TAN of the Payer: A ten-character alphanumeric Tax Deduction and Collection Account Number (TAN) of the payer (e.g., MUMN12345A).
Illustration:
For TAN MUMN12345A, the UIN allotted to the first declaration received for Tax Year 2026–27 shall be: D000000001202627MUMN12345A
Procedure for Declarations Received in Paper Form
Where the declaration in Form No. 121 is received in physical (paper) form, the payer shall:
- Digitize the declaration; and
- Allot a UIN in accordance with the prescribed structure.
The sequence number for such declarations shall continue in the same running series as used for electronically furnished declarations, ensuring consistency and continuity.
Further, the running sequence number series shall be reset to “1” at the beginning of each tax year for every TAN.
Furnishing of Part B of Form No. 121
The payer shall furnish Part B of Form No. 121, containing details of declarations received in Part A (whether digitized or electronically submitted), within the prescribed timelines.
Such submission shall be made:
- In the prescribed file format; and
- Through the Income-tax e-filing portal (www.incometax.gov.in).
Quarterly Reporting Requirements
In addition to furnishing Part B, the payer shall also include details of declarations received during each quarter in the statement of deduction of tax under Rule 219.
This quarterly statement shall:
- Include particulars of all declarations received during the quarter;
- Contain the corresponding UINs allotted to such declarations; and
- Be furnished irrespective of whether tax has been deducted during the relevant quarter.
Objective and Impact
The introduction of a standardized UIN-based system is aimed at:
- Ensuring traceability and auditability of declarations;
- Enhancing transparency in cases of non-deduction of tax;
- Streamlining compliance and reporting mechanisms; and
- Facilitating efficient data management and verification within the tax administration system.
Effective Date
This notification shall come into force with effect from 01 April 2026.
The Notification can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/notification-no-01-cpc-tds-2026-1-pdf
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