TaxSavvy

Compliance Pack

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

  • 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.
  • Deadline: Before the payment or credit on which TDS is to be lowered; the certificate must be with the payer before deduction
  • Done in 3 to 5 working days to file after documents; AO decision often 2 to 8 weeks (practitioner estimate)
  • Prepared by your Savvy, checked by a CA
  1. PAN and TRACES taxpayer login
  2. What income suffers TDS
  3. Prepare estimate of total income and tax for the tax year
  4. ARN acknowledgement
The law and the stepsPay and start · ₹4,999Yearly or per transaction, + 18% GST

Answer in brief

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.

Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Income-tax Act 2025, Sec 395(1) and 395(3) (old Sec 197 and 206C(9))

    Certificate for lower or nil TDS, and lower TCS, on applicationSource

  • Income-tax Rules 2026, Rule 213 (old Rules 28, 28AA, 28AB, 29, 37G, 37H)

    Application in Form 128 filed electronically; AO considers estimated tax, past four years' tax, existing liabilities and tax already paid or deductedSource

  • Income-tax Act 2025, Sec 397(2)

    PAN must be furnished; Form 128 cannot be filed without itSource

  • Government fee

    No government fee mentioned in the official Form 128 FAQs (https://www.incometaxindia.gov.in/documents/d/guest/form-128-faqs).

On the portal

  1. Login to TRACES as taxpayer with PAN
  2. Dashboard > e-file and view > File Forms > Form No. 128
  3. Pick applicant category; fill Part A (details), Part B (request), Part C (liabilities and income), declaration and verification
  4. Fill Annexure I (TDS, named payers), Annexure II (over 100 unnamed payers) or Annexure III (TCS)
  5. Upload computation and documents, e-verify and submit; note ARN
  6. Watch for AO queries; download the certificate from Downloads when issued

What trips people up

  • Applied after the payment was already made

    Not processed for that transaction; claim the excess as refund in the ITR and apply early next timeSource

  • Requested rate not supported by the income estimate or pending demands

    Base the request on a realistic computation and clear or explain demandsSource

  • Payments exceed the amount in the certificate

    Normal rate applies to the excess; apply again if receipts growSource

  • AO queries go unanswered and the case stalls

    Track the application and reply quickly with documentsSource

  • Assuming a CA certificate for a non-resident payment replaces Form 128

    It does not; apply in Form 128Source

People ask

Can I apply more than once a year?

Yes. There is no limit if the expected receipts or income change.Source

Can I withdraw the application?

Yes, until it is processed.Source

Can I file Form 128 offline?

No. Only electronically on TRACES.Source

Is my Sec 197 certificate still valid after 1 April 2026?

Yes, if it was issued for tax year 2026-27 receipts.Source

Does the certificate reduce my final tax?

No. If income is higher than estimated, more tax is still payable in the return.Source

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.Source

IDFD

How we solve it: 4 steps

Every line tracked live.

Step 1 of 4 · What we need from you

Tap each one you already have

Ready0 / 9
  • PAN and TRACES taxpayer login
  • Estimated income and tax computation
  • Payer names, TAN and expected amounts
  • Last four years' ITRs and computations
  • Financial statements or audit reportsOptional
  • Advance tax and TDS already credited
  • Contracts or sale agreementOptional
  • Exempt income noteOptional
  • Outstanding demands, if anyOptional

Connect now

A Savvy replies in minutes.

Fixed price before you pay. Your Savvy is paid only after you accept the work.

Connect nowPay and start: ₹4,999

Answers on this topic

Ask any money problem

Pay and start

₹4,999

₹4,999 + ₹899.82 GST = ₹5,898.82

Yearly or per transaction. 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

  • Every paid answer checked by a CA
  • Fixed price before you pay
  • Track every step live
  • Updates on WhatsApp and in your dashboard