Why does this matter for you?

Say you invest ₹1,00,000 in a bond at 10% interest. That’s ₹10,000 in annual interest.

Without Form 121, the bond issuer deducts 10% TDS — you only receive ₹9,000. With Form 121 filed, you receive the full ₹10,000.

That difference compounds over time. Across multiple bonds over multiple years, it adds up to real money sitting in your pocket instead of waiting in a tax refund cycle.