Lower or nil TDS certificate, Form 128 (earlier Form 13)

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
  1. PAN and TRACES taxpayer login

    PAN mandatory; filed on TRACES

  2. Estimated income and tax computation

    Core basis for the rate

  3. Payer names, TAN and expected amounts

    Certificate is payer and amount specific

  4. Last four years' ITRs and computations

    Unfiled years need a computation

  5. Financial statements or audit reportsOptional

    Supports the estimate

  6. Advance tax and TDS already credited

    AO nets these off

  7. Contracts or sale agreementOptional

    Proves nature and value of receipts

  8. Exempt income noteOptional

    If claiming exempt receipts

  9. Outstanding demands, if anyOptional

    Affects AO decision

DiscussionWhat we discuss · 6 items
  1. What income suffers TDS, from whom, and how much this year?

    Payer-wise amounts in Annexure I

  2. What will your actual tax be this year?

    Lower rate must match real liability

  3. Have all returns for the last four years been filed? Any pending demand?

    AO factors under Rule 213

  4. When are the payments due?

    Certificate must arrive before deduction

  5. More than 100 payers you cannot name yet?

    Annexure II and child certificates

  6. Are you an NRI, a non-profit or a specified entity?

    Different declarations and parts

FormsForms we file · 7 items
  1. 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

  2. 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

  3. Upload documents, e-verify and submit; note the ARN

    Where: https://traces.tdscpc.gov.in. Due: Same day

  4. Reply to AO queries

    Where: https://traces.tdscpc.gov.in. Due: Within the time the AO gives

  5. Download certificate: Dashboard > Downloads > Lower/Nil Deduction/Collection Certificates

    Where: https://traces.tdscpc.gov.in. Due: After approval

  6. Annexure II cases: generate child certificates for each deductor

    Where: https://traces.tdscpc.gov.in. Due: When payer details are known

  7. Send certificate to each payer

    Where: Email. Due: Before payment

DeliverablesWhat you get · 3 items
  1. ARN acknowledgement

    When: Same day

  2. Lower or nil deduction certificate with rate, period and amount limit

    When: After AO approval, often 2 to 8 weeks

  3. 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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+ 18% GST

Book Lower or nil TDS certificate, Form 128 (earlier Form 13)