As per the Income Tax Act, 2025 and the draft rules released by the Government, effective 1 April 2026, Form 15G and Form 15H will be replaced by a single consolidated Form 121.
Apply for a TDS waiver
TDS or Tax Deducted at Source is a tax that gets deducted from your interest payable. Although a fixed deposit is one of the safest investment options, the interest earned on it is considered part of your income. Therefore, TDS applies to this interest amount.
However, if your total income is below the minimum tax limit, you can declare the same by submitting Form 121 for a TDS waiver. Whether you are below the age of 60 or above, the consolidated form 121 is for those who are eligible for a TDS waiver.
Once you submit this declaration, it will ensure that no TDS is deducted from the interest earned on your deposits.
Bajaj Finance Limited offers you the facility of submitting this declaration online in a few easy steps. You can submit your Form 121 by visiting the service portal.
TDS Meaning and TDS Full Form
TDS stands for Tax Deducted at Source, a mechanism employed in many countries, including India, to collect tax at the origin of income. Under this system, a certain percentage of the payment is deducted by the payer and remitted to the government on behalf of the payee. This ensures a continuous inflow of revenue to the government and helps in reducing tax evasion. TDS is applicable on various types of income such as salaries, interest on bank deposits, and payments to contractors. The deducted amount is then reflected in the payee's annual tax return, and the total tax liability is adjusted accordingly. This method simplifies tax collection and ensures timely compliance, providing both the taxpayer and the tax authorities with a streamlined process for managing and tracking income tax obligations.
What is a TDS Certificate?
A TDS Certificate is an official document issued by the deductor to the deductee, confirming the amount of Tax Deducted at Source (TDS) and subsequently deposited with the government. It serves as proof that the tax has been deducted and credited to the government’s account on behalf of the payee. The certificate includes details such as the deductor’s and deductee’s names, PAN numbers, the amount paid, the amount of TDS deducted, and the TDS payment challan number.
For salaried employees, Form 16 is issued, while for non-salaried individuals, Form 16A is provided. These certificates are essential for the payee while filing income tax returns as they help in claiming the deducted amount against their tax liability. They ensure transparency and accuracy in tax records, facilitating easier verification and reconciliation of tax payments for both the taxpayer and the tax authorities.
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Submit Form Form 121 to apply for a TDS waiver
You can submit your declaration by following these simple steps:
- Enter your mobile number and submit the OTP to sign-in to the service portal
- Verify your details by entering your date of birth.
- Go to ‘Service’ and click on ‘Relations’
- Select your fixed deposit number
- Click on the ‘Submit Form Form 121’ option
- View your Form 121 and click on ‘Proceed’.
- Enter any additional information that is required.
- Verify with the OTP you received on your registered mobile number and proceed with submission.
Click on the ‘Apply for a TDS waiver’ option below to visit our Service portal. Once signed-in, you’ll be redirected to the ‘Relations’ section, where you can select your FD.
You can then click on the ‘Submit Form 121’ and proceed with your declaration.
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You can submit your Form 15 G/ H online by visiting our service portal and applying for a waiver.
Once you are signed-in, select your FD from ‘My Relations’ and proceed to apply for a TDS waiver.
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Check your fixed deposits
Visit our service portal and track your FD details easily.
Frequently asked questions
When you invest in an FD, you earn a certain percentage of interest on the deposited amount. This interest amount is considered as your income and therefore TDS applies to it. However, if you are 60 years or above in age with the total income below the minimum tax limit, you can submit Form 121. Submitting this declaration allows you to apply for a TDS waiver. Once you submit this declaration, no TDS is deducted from the interest earned of your deposits.
In case you’ve invested in our fixed deposit, you can submit your Form 121 by visiting our service portal.
Interest earned on your fixed deposit is considered as your income and therefore TDS (Tax Deducted at Source) applies to it. However, if your total income is below the minimum tax limit, you can apply for a TDS waiver. To apply for a TDS waiver, you need to submit Form 121. If you’ve invested in our fixed deposits and wish to apply for a TDS waiver, you can visit our customer portal. Our digital customer portal eliminates the hassle of branch visits and allows you to submit the Form 15G/ H in just a few clicks.
If you forget to submit Form 121, TDS will be deducted from your income. You can claim a refund for the deducted TDS by filing your income tax return and showing that your total income is below the taxable limit.
No, Form 121 cannot be submitted if your total income exceeds the basic exemption limit. These forms are only for individuals whose total income is below the taxable threshold to avoid TDS on certain incomes.
Form 121 require details like your name, PAN, address, contact information, financial year, estimated income for which the form is being submitted, total estimated income, and declaration of eligibility to file the form.
No, you do not need to submit a copy of Form 121 to the income tax department. These forms should be submitted to the deductor, such as a bank, who then submits them to the income tax department on your behalf.
No, Form 121 cannot be submitted for interest income that is clubbed with another depositor’s income. These forms are individual declarations and should only be used for interest income that is solely in your name.
