Neutral impactCorporate Action
Expecting nil tax liability this year? Know which form to submit to avoid TDS on bank interest, rent and dividend income
Mint 1 hr ago·27 Sept 2026, 1:58 pm
Taxpayers who expect to have no income‑tax liability for the financial year can now submit Form 121 to the entity paying them interest, rent or dividend. The declaration tells the payer that the recipient’s estimated tax is zero, so the payer does not have to deduct tax at source (TDS) on those incomes.
For retail investors, this means the full amount of bank interest, rental receipts or dividend payouts will be credited without any deduction, improving cash flow and simplifying tax filing. It is especially useful for senior citizens, retirees and those whose total taxable income falls below the exemption threshold.
Investors should watch the filing deadline for the form, ensure all personal and PAN details are accurate, and confirm that the payer has acknowledged the declaration. Any change in the exemption limits or TDS rules could affect the need to file Form 121 in future years.
Key takeaways
- Category: Corporate Action.
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