3 days ago
Form 121 Can Help Prevent TDS on Certain Incomes
Some payments, such as bank interest or rent, may have tax taken out before you receive them.
This is called TDS.
If you expect to owe no tax for the year, you may be able to submit Form 121.
The form tells the person or organisation paying you not to deduct TDS on certain incomes.
People below 60 and other eligible taxpayers must meet additional income conditions.
Senior citizens mainly need to show that their estimated tax payable is nil.
The form should preferably be submitted before the payment is made or credited.
You must submit a separate form to each payer.
Eligible taxpayers with nil estimated tax liability can submit Form 121 to avoid TDS on specified incomes.
Form 121 replaces Forms 15G and 15H under the Income-tax Act, 2025.
Covered payments may include bank interest, rent, dividends, insurance commission and certain policy payments.
Taxpayers below 60 generally must meet income and specified-income limits, while senior citizens must have nil estimated tax payable.
The form must be submitted separately to each payer, who verifies it, assigns a UIN and reports it through the e-filing portal.
- Who
- Eligible taxpayers, including individuals, certain HUFs and trusts, and senior citizens, who expect nil tax liability.
- What
- They may submit Form 121 to avoid TDS on specified income payments.
- Where
- Electronically through the payer’s portal or physically, as applicable.
- When
- Preferably before the income is credited or paid, ideally early in the Tax Year.
- Why
- To prevent TDS when the taxpayer ultimately has no tax payable and reduce the need to claim a refund.
Key facts
- Form purpose
- Declaration that estimated total income for the relevant Tax Year will result in no tax liability.
- Replaces
- Earlier Forms 15G and 15H.
- Eligible income
- Bank, cooperative bank and post-office interest; interest on securities; rent; insurance commission; dividends; mutual fund income; and certain policy and provident-fund payments.
- Age condition
- Individuals below 60 and other eligible taxpayers face income and specified-income conditions; senior citizens must have nil estimated tax payable.
- Required information
- Valid operative PAN, relevant income and investment details, age proof when claiming senior-citizen eligibility, and the payer’s TAN.
- Submission process
- The declaration is submitted separately to each payer, who verifies it, assigns a Unique Identification Number and reports it through the income-tax e-filing portal.
Sources
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