New Delhi, Sept. 27 -- 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.

Form No. 121 is a declaration through which an eligible taxpayer tells the payer that their estimated total income for the relevant tax year will not result in any tax liability.

The payee/deductee is the person receiving the income and submitting Form 121. The person or e...