Expecting nil tax liability this year? Know which form to submit to avoid TDS on bank interest, rent and dividend income
AI Summary
The introduction of Form No. 121 simplifies the process for taxpayers with nil tax liability to avoid TDS, which can enhance cash flow for individuals and entities receiving certain types of income. This change is particularly beneficial for retail investors who may rely on dividends and interest income, as it reduces the administrative burden of claiming refunds later. As the tax landscape evolves, investors should stay informed about such developments to optimize their tax strategies and enhance their overall investment returns.
Taxpayers who earn certain types of income such as bank interest, rent, insurance commission, dividends, or income from securities may have tax deducted at source (TDS) on those payments.
However, if their estimated tax liability for the year is nil, they can submit Form No. 121 to avoid TDS on specified incomes. The new form replaces the earlier Forms 15G and 15H and brings both declarations into a single format under the Income-tax Act, 2025.
Original Article
Published on Livemint
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This is a results news update from Livemint, published on 27 September 2026.
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