# Form 121 now lets nil-tax filers avoid TDS on interest, rent

2026-09-27T15:31:30+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Taxpayers whose estimated tax liability for the year is nil can now submit Form No. 121 to avoid TDS on income such as bank interest, rent, insurance commission, dividends and securities. The new single form replaces the earlier Forms 15G and 15H under the Income-tax Act, 2025. Individuals below 60, HUFs and trusts must have nil tax on estimated total income and ensure the specified income does not exceed the non-taxable limit. Senior citizens aged 60 or above only need to meet the nil-tax condition. The form requires the taxpayer's PAN, income details, age proof if claiming senior status, and the payer's TAN. It must be submitted before the income is credited, separately to each payer. The payer must verify the declaration, assign a Unique Identification Number, and report it on the income tax e-filing portal.

## Indian Opinion Analysis

The merger of Forms 15G and 15H into a single Form 121 simplifies compliance but also shifts more responsibility onto the taxpayer to correctly estimate their annual income. Those who submit the form early in the tax year avoid having to claim a refund later, saving time for both the taxpayer and the Income Tax Department. However, each payer requires a separate declaration: a taxpayer with a bank fixed deposit, a post office account and a rental tenant must file three forms, not one. The real test will come in how seamlessly the e-filing portal processes these declarations and whether payers comply with the new UIN requirement. The next milestone is the rollout of the full Income-tax Act, 2025 framework, expected to take effect from the next assessment year. The merger of Forms 15G and 15H into a single Form 121 simplifies compliance but shifts more responsibility onto the taxpayer to correctly estimate annual income.

## Coverage

- livemint.com <https://www.livemint.com/money/personal-finance/expecting-nil-tax-liability-this-year-know-which-form-to-submit-to-avoid-tds-on-bank-interest-rent-and-dividend-income-11790513596123.html>

Tags: Form 121, income tax department, senior citizens, TDS
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