Lower / Nil TDS Certificate (Form 13)

Who can use this

• Individuals with income below taxable limit
• Senior citizens (age 60+) with qualifying income
• Entities with tax losses or low income
• HUFs with low/no taxable income
• Trusts with specific income criteria
• Entities claiming exemptions under IT Act

Who cannot use this

• Entities with outstanding tax demand
• Non-compliant taxpayers
• Entities with recent assessment defects

Documents required

• PAN and Aadhaar card copy
• Previous year ITR (last filed return)
• Proof of current year income (interest certificates from bank, dividend statements, etc.)
• Bank statements (last 3-6 months)
• Proof of exemptions or deductions (if applicable)
• Deductor's details (TAN, name, payment/interest details)

Step-by-step process

1. Log in to TRACES portal with your PAN — Visit https://www.incometax.gov.in and select 'TRACES' link. Log in using your PAN as username and registered mobile OTP for authentication.
2. Navigate to Form 13 Certificate application — After login, click on 'e-Services' or 'Forms' > 'Section 197 (Lower Deduction Certificate)'. Click 'Apply for Form 13'.
3. Select certificate type: Lower or Nil TDS — Choose whether you want Lower TDS Certificate (reduced rate) or Nil TDS Certificate (0% TDS). Based on your expected income, select appropriate option.
4. Enter source of income and expected amount — Specify the source: Bank Interest, Dividend, Royalty, etc. Enter estimated amount you will receive in current financial year. Provide deductor's TAN and name.
5. Provide justification for lower/nil TDS claim — Explain why you are claiming lower/nil TDS: income below taxable limit, age 60+, losses from other sources, exemptions under IT Act, etc. Upload supporting documents.
6. Upload ITR and income proof documents — Upload your last filed ITR, current year income documents (bank interest certificates, dividend statements), bank statements, and any exemption certificates.
7. Fill applicant personal details — Enter your name, PAN, Aadhaar, DOB, address, phone, and email. Verify details match your PAN records.
8. Calculate and declare proposed TDS rate — Based on income and deductions, calculate the TDS rate you are seeking: 0% (nil), 5%, 10%, etc. Justify the rate with reference to IT Act provisions.
9. Provide deductor's details and contact — Enter deductor information: Name, TAN, address. Mention if deductor is a bank, company, or fund house. The certificate will be sent to deductor as well.
10. Review application summary — TRACES displays a summary of your Form 13 application: income source, amount, justification, documents, and proposed TDS rate. Verify all details are correct.
11. Submit Form 13 application — Click 'Submit'. You will receive an application reference number via email. TRACES will send application to Income Tax Officer for processing.
12. Income Tax Officer reviews and approves — The assessing officer will review your application within 10-15 days. If additional documents are needed, you will receive notice on TRACES portal.
13. Receive Form 13 Certificate approval — Once approved, the Form 13 Certificate is issued electronically. You will receive it on TRACES portal and via email with the approved TDS rate.
14. Download and share certificate with deductor — Download the Form 13 Certificate PDF. Share it with the deductor (bank, company, etc.) before payment of interest/dividend to claim lower/nil TDS benefit.
15. Deductor applies reduced TDS on payment — Once deductor receives Form 13, they will apply the approved TDS rate (lower or nil) on your interest/dividend payment instead of standard rate. Payment credited with lower TDS.

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