How Can I Apply for a Lower TDS Certificate in India?

One thing that caused confusion for me was the change in law from April 2026.

Under the earlier Income-tax Act, the lower/nil TDS provision was generally referred to as Section 197 and Form 13. Under the Income-tax Act, 2025, the corresponding provision is Section 395(1) and Form 128. The Income Tax Department has specifically clarified this transition.

So if you are searching for instructions online, check the date of the information. Older guides can still be useful for understanding the concept, but the form number and statutory references need to be checked against the current 2026 rules.

If your situation involves an NRI property sale, I would first work out the expected taxable capital gain and overall tax liability rather than simply comparing the TDS with the sale price.

The lower-deduction process is based on the estimated tax liability, so the application needs supporting financial information. The tax department's Form 128 specifically asks for applicant details and information relating to the request.

Also, don't assume that the TDS amount is automatically your final income-tax liability. TDS is a mechanism for collecting tax in advance. Your final tax liability is determined separately when you calculate your taxable income.

For a large property transaction, I would have the calculations checked before submitting the application.

I was also initially looking for Form 13 because most older articles still mention it. For Tax Year 2026–27, the Income Tax Department has introduced Form 128 for applications for lower or nil deduction of tax.

The Income Tax Department says Form 128 is filed electronically and can be used by both residents and non-residents who want tax deducted at a lower rate or not deducted. The certificate is issued only if the tax authority is satisfied that the estimated income and resulting tax liability justify the lower or nil deduction.

I would not wait until the payment date. The certificate needs to be available to the payer before the relevant TDS deduction, so it is better to start the application well in advance.