Lower TDS Certificate.
If tax deducted at source on your receipts will exceed your actual tax, you can apply for a certificate allowing deduction at a lower or nil rate. From April 2026 the application is made in Form 128 under section 395(1) of the Income-tax Act, 2025 (earlier Form 13 under section 197). We prepare the income estimate and application and follow it through to the certificate.
Typically a few weeks from filing, depending on the department's review and any clarifications sought; applying early in the year gives the most benefit.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Businesses with thin margins on contracts, where TDS exceeds the tax on profit
- Companies with brought-forward losses or tax holidays
- Non-residents receiving payments from India with treaty benefits or low taxable income
- Sellers seeking a lower TCS rate under section 395(3) (earlier section 206C(9))
What you receive at the end.
- 01Income and tax projection supporting the application
- 02Filed Form 128 with acknowledgement
- 03Lower or nil deduction certificate, once issued
- 04Note for deductors on applying the certificate
Lower TDS Certificate, step by step.
Typically a few weeks from filing, depending on the department's review and any clarifications sought; applying early in the year gives the most benefit.
- 1
Assess eligibility
We estimate your income and tax for the year and compare it with the TDS expected, to confirm a certificate is worth applying for.
- 2
Prepare the application
We prepare Form 128 with projected financials, recent returns and a list of deductors with expected payments.
- 3
File electronically
We file the application electronically with the Income Tax Department.
- 4
Respond to queries
We answer clarifications from the Assessing Officer and provide supporting documents.
- 5
Share the certificate
Once issued, we send the certificate to each named deductor, who can verify it on TRACES before applying the lower rate.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- PAN and income-tax returns for recent years
- Audited financial statements and projections for the current year
- List of deductors with TANs and expected amounts
- Form 26AS or Form 168, and AIS
- Details of tax already paid or deducted this year
- For non-residents: tax residency certificate and treaty position
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about Lower TDS Certificate.
Ready to discuss Lower TDS Certificate?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.