Compliance Pack
Lower or nil TDS certificate, Form 128 (earlier Form 13)
What this means, checked by a CA
If TDS cut from your receipts is more than the tax you will actually owe, you can ask the tax officer for a lower or nil TDS certificate. We prepare your income estimate, file Form 128 on TRACES, answer the officer's questions and share the certificate with your payers.
₹4,999
Yearly or per transaction, + 18% GST
- Delivered in 3 to 5 working days to file after documents; AO decision often 2 to 8 weeks (practitioner estimate)
- Due: Before the payment or credit on which TDS is to be lowered; the certificate must be with the payer before deduction
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 9 items
PAN and TRACES taxpayer login
PAN mandatory; filed on TRACES
Estimated income and tax computation
Core basis for the rate
Payer names, TAN and expected amounts
Certificate is payer and amount specific
Last four years' ITRs and computations
Unfiled years need a computation
Financial statements or audit reportsOptional
Supports the estimate
Advance tax and TDS already credited
AO nets these off
Contracts or sale agreementOptional
Proves nature and value of receipts
Exempt income noteOptional
If claiming exempt receipts
Outstanding demands, if anyOptional
Affects AO decision
DiscussionWhat we discuss · 6 items
What income suffers TDS, from whom, and how much this year?
Payer-wise amounts in Annexure I
What will your actual tax be this year?
Lower rate must match real liability
Have all returns for the last four years been filed? Any pending demand?
AO factors under Rule 213
When are the payments due?
Certificate must arrive before deduction
More than 100 payers you cannot name yet?
Annexure II and child certificates
Are you an NRI, a non-profit or a specified entity?
Different declarations and parts
FormsForms we file · 7 items
Prepare estimate of total income and tax for the tax year, and computations for any unfiled prior year
Expected tax divided by expected receipts gives the rate to request; net off advance tax and TDS already deducted
Where: Internal. Due: Before filing
File Form 128 on TRACES: Dashboard > e-file and view > File Forms > Form No. 128; fill Parts A to F and the right Annexure
Where: https://traces.tdscpc.gov.in. Due: Well before the payment
Upload documents, e-verify and submit; note the ARN
Where: https://traces.tdscpc.gov.in. Due: Same day
Reply to AO queries
Where: https://traces.tdscpc.gov.in. Due: Within the time the AO gives
Download certificate: Dashboard > Downloads > Lower/Nil Deduction/Collection Certificates
Where: https://traces.tdscpc.gov.in. Due: After approval
Annexure II cases: generate child certificates for each deductor
Where: https://traces.tdscpc.gov.in. Due: When payer details are known
Send certificate to each payer
Where: Email. Due: Before payment
DeliverablesWhat you get · 3 items
ARN acknowledgement
When: Same day
Lower or nil deduction certificate with rate, period and amount limit
When: After AO approval, often 2 to 8 weeks
Child certificates (Annexure II cases)
When: As payers are identified
Questions people ask
Can I apply more than once a year?
Yes. There is no limit if the expected receipts or income change.
Can I withdraw the application?
Yes, until it is processed.
Can I file Form 128 offline?
No. Only electronically on TRACES.
Is my Sec 197 certificate still valid after 1 April 2026?
Yes, if it was issued for tax year 2026-27 receipts.
Does the certificate reduce my final tax?
No. If income is higher than estimated, more tax is still payable in the return.
Does a Sec 395 certificate help with remittance forms?
The source says it allows filing Form 145 Part B without a Form 146 CA certificate.
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