How do I stop TDS on my bond interest?

1What the form does

When a company pays interest on its bond, it keeps 10% and sends that to the tax department. This is called TDS. It applies once one company pays you more than ₹10,000 in a year, and then it is cut from the whole amount, not only the part above ₹10,000.

If your total income is low enough that you will owe no tax, that 10% is taken from you for no reason. You get it back only by filing a return and waiting for a refund. Form 121 prevents the cut in the first place. It used to be called Form 15H for senior citizens. From 1st Apr 2026 Form 15G and Form 15H are replaced by Form 121.

The form does not make the interest tax free. You still show it in your income tax return.

2Can you use it?

You can, if both of these are true:

• You are a resident of India and are 60 or older at any time during the tax year (1st April to 31st March).
• Your total income for the year, including all your interest, is low enough that you will owe no tax. For example, a pension of ₹6 lakh plus ₹60,000 of bond interest comes to no tax under the new regime, because of the rebate.

If you expect to owe tax, do not file it. Let the 10% be cut and claim it as credit in your return.

3Keep these ready

• Your PAN.
• Your date of birth and address, as in your bond records.
• Your demat account number and the name or ISIN of the bond.
• The interest you expect from this company this year. It is on your bond's payment schedule.
• Your estimated total income for this year, and details of your last two income tax returns.

4The steps

1. Find out where the company wants the form. Look up your company in the list in section 8 first. Search the company's name with "TDS declaration" or "notice to bondholders". Most bond companies use a registrar such as KFin Technologies or MUFG Intime, and the notice gives the registrar's website or address. If you cannot find it, call the company's investor helpline and ask where to send Form 121.
2. Get Form 121. Download it from the registrar or company page, or from the income tax website incometax.gov.in. Ask for the form for "Form 121, earlier Form 15H".
3. Fill Part A. Your name, PAN, date of birth, address, resident status, the tax year, the interest you expect from this company, your estimated total income, and your last two returns. Leave Part B. The company fills that.
4. Sign it and send it. Upload it on the registrar's portal, or post or hand in two signed copies, as the notice says.
5. Keep proof. Save the upload receipt, or the post receipt. Ask for the reference number the company gives your form. It has to be given to the tax department by the company.
6. Check your next interest. The full amount should arrive with no 10% cut.

5When to do it

Send it before the next interest date, and as early in the year (April to May) as you can. The form works only for payments made after the company accepts it. Tax already cut stays cut, and you claim it back in your return.

6Remember

• Send one form to each company. If you hold bonds of three companies, send three forms.
• Send it again every year. A form is good for one tax year only.
• Send a new form if you buy another bond of a company, naming the new bond, unless the company says one form covers all your holdings with it.
• If your income rises and you will owe tax, stop sending forms. A false declaration makes you liable for the tax and for penalties.
• If your interest from a company is ₹10,000 or less in the year, no tax is cut and you need no form.

7If you are an NRI

Form 121 is only for residents of India. An NRI cannot use it, whatever their age or income.

Interest paid to a non-resident has tax deducted under a different part of section 393, at a higher rate, and the ₹10,000 limit does not protect you. What can be done:

• Treaty rate. If India has a tax treaty with the country you live in, the rate on interest can be lower. The company will usually ask for a tax residency certificate from your country and a signed declaration before it applies the lower rate. Ask the registrar what it needs.
• Lower deduction certificate. You can apply on the TRACES portal for a certificate from the tax officer that cuts the deduction. It is Form 128, which replaced Form 13. It takes time and is worth it only for larger amounts.
• Claim it back. File an Indian income tax return. Any tax cut above what you owe is refunded.

The rules for NRIs depend on your country and on the type of bond. Speak to a chartered accountant before you act.

8Where to send it: issuer by issuer

We looked up the companies behind the company bonds on our platform on 26th Oct 2026 for where a bondholder sends Form 121. This list shows the ones where we found an answer. Many companies do not publish this, so the list has two groups. Type a company name to find it. If your company is not listed, check your bond's registrar on its BSE or NSE page, or call the company's investor desk.

A. Where to send it (20 companies)

For these, we opened the company's own page or the registrar's upload page and saw the company listed or named.

B. Registrar named, but no instructions (36 companies)

These companies do not publish a Form 121 page. Their registrar is named by the company or by a bond listing, so the form probably goes there. Call the company's investor desk or the registrar to confirm before you send.

Registrars that run general upload pages for many companies: KFin Technologies, MUFG Intime (formerly Link Intime) and Integrated Registry. A third-party list of registrar contacts is on IndiaBonds. Registrar pages and company pages change; if a link has gone, search the company name with "Form 121".