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Form 13- Apply for Lower Deduction Certificate for TDS

We help you apply for a Lower Deduction certificate to unlock tax benefits and financial growth as an NRI. Working with us makes the process stress-free as our services include:

Expert consultation

End-to-end process

Complete documentation for Form 13

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When Should You Consider Applying for a Lower Tax Deduction Certificate

As a taxpayer earning income subject to TDS deduction, you may encounter a situation when the TDS amount is more than the tax liability of the recipient. You can handle it by obtaining a Lower Tax Deduction Certificate (LDC) under Section 197. You should consider applying for LDC in the following cases:

  • Loss-making businesses

  • Net total income is below the basic exemption limit

  • Receipt of payment from a property sale by an NRI from an Indian buyer

  • Other Income like Interest, dividend, etc which are subject to TDS

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Why Seek Help from Tax Buddy to Apply for a Lower Deduction Certificate for TDS

If you are a non-resident planning to sell property in India or have income subjected to TDS, we can help you resolve the challenge with the Lower Tax Deduction Certificate. Our services facilitate the application process for securing the LDC, ensuring reduced tax obligations. Working with us opens up several benefits, such as:

Top-Notch Advisory Services

Our NRI tax specialists provide tailored guidance to address your unique needs and circumstances. We are with you throughout the process, addressing all queries and concerns to ensure clarity.

Seamless Process

From checking your documents to ensuring complete and correct details, we guide you about every part of the application. Our team ensures a zero-hassle and no-glitch process from start to end.

Adhere to Regulatory Standards

Since Form 13 requires adherence to the regulatory standards of section 197, we make sure that you do not falter at any point. With our experts showing the way, you never have to worry about anything going wrong.

Schedule a Consultation at Rs847/- (Exclusive of GST)

For comprehensive insights and address into the Lower Tax Deduction Certificate process, schedule a consultation call with our NRI team

Understanding the Significance of Form 13 Under Section 197

Form 13 is the cornerstone of the application for a lower deduction of TDS. You need to file Form 13 with the Assessing Officer (TDS) to obtain the LDC. Once the AO goes through the details in Form 13 and is satisfied with it, they issue the Lower Tax Deduction Certificate. Without this certificate, you cannot lower the TDS amount, even if it is legitimate.

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From documentation to the application process, everything about Form 13 can be challenging. Partnering with experts is the only way to cruise through the process.

Need expert assistance to file Form 13? We are here to help.

How to Apply for a Lower Tax Deduction Certificate

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Step 1:

Identify the transaction subjected to TDS to which the LDC applies

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Step 2:

Ensure that the transaction qualifies for reduced tax deduction to verify eligibility for the claim

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Step 3:
Prepare the necessary calculations and compile supporting documentation

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Step 4:
Submit Form 13 via the TRACES Portal along with the required documents

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Step 7:

Once the application is approved, you receive the Lower Tax Deduction Certificate for reduced TDS rates for the specified transaction.

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Step 6:
Await acceptance of the application by the Income Tax Authorities

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Step 5:
Validate the application by uploading DSC or e-verification through Net banking or Mobile OTP

Our Experts can Help you complete this checklist by doing all the heavy lifting.

Apply for Lower Tax Deduction Certificate for TDS: ₹16949/- (Exclusive of GST)

Documents Required with Form 13

If you think that the steps of the LDC application are overwhelming, you may be even more surprised by the documents required with Form 13. These include:

  • Signed Form 13

  • PAN card copy

  • Tax Deduction Account Number (TAN) of parties paying you

  • Estimated income during the financial year

  • Computation of income statement for last 3 financial years

  • Estimated computation of income for the current financial year

  • Copies of assessment orders for the last 3 financial years (if applicable)

  • Copies of IT returns with enclosures and acknowledgment for the last 3 financial years

  • Copies of financial statements and audit reports for the last 3 financial years (if applicable)

  • Projected profit and loss account for the current financial year

Form 13 for Lower Tax Deduction Certificate for TDS Tailored for:

1

Property Sale: If you're a Non-Resident selling property, securing a Lower Deduction Certificate is key. It minimizes excess tax deductions, ensuring you retain more from the sale transaction.

2

Other Income Streams: For various income sources like interest and dividends subject to TDS, obtaining an LDC is a smart move. It helps in reducing or entirely avoiding TDS, optimizing your overall income.

Hear from Our Clients

Mahima Rane

Local Guide • 4 days ago

Tax Buddy is a go-to name when it comes to getting tax advice on complicated matters, including obtaining a Lower Tax Deduction certificate. As an NRI selling my property in India, I was worried about the TDS part. These experts helped me get an LDC and address the concern. They ensured maximum savings for me.

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Chaitaly Chafle

2 hour ago

When I came across the steps of filing Form 13 for LDC, I was completely baffled. I consulted Tax Buddy experts and got end-to-end services to ease the process. Believe me, they made the entire process a breeze!

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Kirti Sharma

2 days ago

I am thankful for the support and assistance taxbuddy extended to me during my LDC process. Without his help, I am sure that I may have gone wrong with multiple steps. I recommend his services to all NRIs selling a property in India because he is a tax specialist.

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Bhuvan Rana

1 hour ago

With Tax Buddy as your guide, you don’t have to stress about getting the Lower Tax Deduction certificate. Their extensive knowledge, expertise, and experience sets them apart. Moreover, they go the extra mile with their services.

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Frequently asked questions

Q

What is Form 13?

A

Form 13 is an application for a Certificate under Section 197/206C (9) of the Income Tax Act, allowing for lower deduction or non-deduction of TDS.

Q

Who can apply for a Lower Tax Deduction Certificate?

A

Tax planning should start at the beginning of a financial year, as it enables individuals and businesses to settle their financial affairs and take advantage of the best tax-saving opportunities. However, you can still benefit from it at any time during the year.

Q

What kind of incomes are eligible for a Lower Tax Deduction Certificate?

A

Various types of incomes are eligible for a Lower Tax Deduction Certificate. These include income from diverse sources such as rent, commission, interest, and capital gain on the sale of property. Any income subject to TDS can be considered for a Lower Tax Deduction Certificate.

Q

How long is a Lower Tax Deduction Certificate valid?

A

The Lower Tax Deduction Certificate mentions its validity period. Usually, it is valid for a particular financial year or for a specified period as determined by the Assessing Officer.

Q

How long does it take to get a Lower Tax Deduction Certificate?

A

You can expect the process to take 5-6 weeks. The Assessing Officer may issue a certificate within this period if satisfied with the details and documentation provided in Form 13. The certificate specifies the income eligible for a lower tax deduction.

Q

Can Form 13 be modified?

A

Form 13 cannot be altered after submission. However, the taxpayer can withdraw the application anytime before approval by the assessing officer.

Q

How to Submit Form 13 Online?

A

Log into the TRACES portal, select 'Submit Request,' choose 'Form 13,' fill in details, attach necessary documents, and submit. The Assessing Officer will review and process the submission.

Q

How to Download Form 13 from TRACES?

A

Log in to the TRACES portal, select 'Downloads,' and choose 'Form 13.' Ensure accuracy before using the form.

Q

How to File Form 13 for Lower Deduction?

A

File Form 13 for Lower Deduction on the TRACES portal. Log in, select 'Request for Form 13,' provide details, attach documents, and submit. The Assessing Officer will review and approve if eligible.

Q

NRI Selling Property in India – Form 13 Requirement?

A

Yes, NRIs selling property in India to a resident buyer need to apply for Form 13 to avail lower deduction or non-deduction of TDS.

Q

Can I Apply Nil Deduction of TDS in Form 13?

A

Yes, you can apply for nil deduction of TDS in Form 13 if you meet the conditions specified under the Income Tax Act.

Q

Time Taken for Form 13 Certificate Approval?

A

The time taken for Form 13 certificate approval varies, but it typically ranges from a few weeks to a couple of months, depending on the workload of the Assessing Officer.

Q

Consequences if Form 13 is Not Approved?

A

If Form 13 is not approved by the Assessing Officer, TDS will be deducted at the regular rates specified under the Income Tax Act.

Q

Validity Period of Form 13?

A

Form 13 is typically valid for the financial year for which it is issued. However, the validity period may vary based on the decision of the Assessing Officer.

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