INCOME TAX27 Sept 2026
Expecting nil tax liability this year? Know which form to submit to avoid TDS on bank interest, rent and dividend income | Mint
If your estimated tax for the year is nil, you can submit Form 121 to stop tax deducted at source (TDS) on bank interest, rent, dividends, insurance commission and securities income. This single new form replaces Forms 15G and 15H. Give it to the payer before the income is paid; they will verify it and assign a Unique Identification Number.
Key Statutory Highlights
- Form 121 lets taxpayers whose estimated tax liability for the year is nil avoid TDS on specified incomes such as bank interest, rent, insurance commission, dividends and income from securities.
- The new form replaces the earlier Forms 15G and 15H and brings both declarations into a single format under the Income-tax Act, 2025.
- The payer must verify the declaration, assign a Unique Identification Number (UIN) and report it through the income tax e-filing portal.
Actionable Advice for Taxpayers / Founders:If you expect nil tax this year, consider giving Form 121 to your payer early in the tax year, ideally before the income is credited, so TDS is not deducted in the first place. It can be filed electronically through the payer's portal or in physical form, as applicable.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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