Form 13 / Form 128: Application for Lower or Nil TDS Certificate
Prepare the details for an application to the Assessing Officer for a certificate allowing your payers to deduct TDS at a lower or nil rate.
Law version: FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
A person whose actual tax liability is lower than the TDS that payers would deduct can apply to the Assessing Officer for a certificate for deduction at a lower rate or no deduction. Up to FY 2025-26 the application was in Form 13 under Section 197 of the Income-tax Act, 1961. From Tax Year 2026-27 it is made in Form 128 under Section 395(1) of the Income-tax Act, 2025 (Rule 213). The application is filed online on TRACES with financial details and projections.
When it is used
- Contractors and professionals with low margins relative to receipts.
- Non-residents with treaty benefits or losses.
- Property sellers whose capital gains tax is lower than the TDS.
What the template covers
- Applicant name, PAN, address and status
- Nature of income
- Payer name and TAN
- Estimated income from this source
- Requested TDS rate
- Justification and year
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Application
Application Date
Applicant
Applicant Name; PAN; Address; Status
Income
Nature of Income; Payer / Deductor Name; Payer TAN; Estimated Annual Income from this Source (₹)
Request
Requested TDS Rate (%); Justification for Lower/Nil Rate
Period
Financial Year / Tax Year
Stamp duty, registration and filing
The certificate is issued for a specific period and specified payers, and the payer deducts at the rate in it. Applications are made online through TRACES with past returns, computation of estimated income and other details. A certificate issued under Section 197 for receivables of Tax Year 2026-27 stays valid. Check the procedure on incometax.gov.in and tdscpc.gov.in.
From 1 April 2026 the application is made in Form 128 under Section 395(1) of the Income-tax Act, 2025. A Section 197 certificate already issued for Tax Year 2026-27 receivables stays valid.
Generate the Form 13 / Form 128 — Lower/Nil TDS Certificate Application
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. TDS returns, ITR)? Contact SKAG and Associates
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Frequently asked questions
How long does a lower TDS certificate take?
The rules provide a time limit for disposal of the application; in practice it depends on the case and documents.
Is the certificate valid for all payers?
No. It is issued for the payers named in it, up to the amount and period stated.
Which form replaces Form 13 from April 2026?
Form 128 under Section 395(1) of the Income-tax Act, 2025.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.