Form 121 Explained: A Simpler Way to Avoid TDS Under New Income Tax Act 2025
As we are all aware of that, the new Income Tax Act 2025 has already come into effect from April 01, 2026. With this change, the government has tried to simplify tax rules for taxpayers without affecting the earlier tax rates. The key objective is to reduce the scope of litigation and eliminate uncertainty from the country’s tax system.
Numerous sections, schedules, rules and forms have been consolidated and reduced. Previously, a total of 819 sections were available under the Income Tax Act 1961; now, these sections have been reduced to just 536. Similarly, chapters have been reduced from 47 to 23. The total words have been reduced from 5.12 lakh words to around 2.6 lakh words.
The total number of forms has been decreased from 399 to 190 in the new Income Tax Act 2025. As part of this amendment, the tax authorities have introduced a new Form 121. Today, we will understand what this form is about and how to furnish it for the Tax Year 2026-27.