Statutory online application on the TRACES portal under Section 197 and Rule 28 to obtain an Assessing Officer certificate commanding deductors to deduct zero or lower TDS
Buyers must deduct a punitive 20% to 30% TDS on gross property sales by NRIs under Section 195. Filing Form 13 allows NRIs to pay TDS only on actual capital gains rather than the full sale price.
💡 Form 13 is an online application made to your jurisdictional Assessing Officer (TDS) under Section 197. If you can demonstrate that your total annual income will be below the taxable threshold or subject to lower effective tax rates (due to business expenses, carry-forward losses, or treaty relief), the tax officer issues a digitally signed certificate. When you provide this certificate to your deductor (buyer, client, or tenant), they are legally bound to deduct TDS at the lower or nil rate specified.
Choose between self-declarations and Assessing Officer orders based on your income source and entity type.
| Parameter | Form 13 Certificate (Sec 197) | Form 15G / Form 15H (Sec 197A) | |
|---|---|---|---|
| Authority Approving Exemption | Assessing Officer (Income Tax Department) after scrutiny | Self-declaration submitted directly to deductor without officer review | Form 13 requires official scrutiny; 15G/H is a self-certification |
| Eligible Payments Covered | Contractors (194C), Rent (194-I), Professional fees (194J), NRI sales (195), Commission | Fixed deposit interest (194A), EPF withdrawal (192A), Dividends (194) | 15G/H cannot be used for contracts, professional fees, or NRI property sales |
| Who Can Apply | Any entity: Individuals, NRIs, Companies, LLPs, Partnerships | Resident individuals and HUFs only (No NRIs, No Companies) | NRIs must always use Form 13 |
| Allowed Tax Rates | Can be NIL (0%) or any customized lower rate (e.g., 0.5%, 1%, 2%, 5%) | Only 0% (NIL deduction); no lower fractional rates permitted | 15G/H is strictly all-or-nothing |
21 to 30 working days from the date of online submission on TRACES to Assessing Officer issuance.
100% Free of government charges (no official fee on TRACES portal).
Any individual, HUF, company, firm, or trust holding an active PAN who has filed income tax returns for the preceding three assessment years (unless recently established) with no outstanding undisputed tax demands.
Taxpayers (both residents and Non-Resident Indians - NRIs, businesses, contractors, and property sellers) whose final estimated tax liability will be zero or lower than the statutory TDS rates, seeking to avoid severe cash flow blockages and wait times for tax refunds.
Visit contents.tdscpc.gov.in, select 'Login' as 'Taxpayer', enter your PAN, password, and captcha code.
On the top navigation bar, click 'Statements / Forms' → 'Request for Form 13'. Select the relevant Financial Year for which the certificate is sought.
Review pre-filled contact details. Enter your projected income for the current year, specify past tax returns, existing advance tax paid, and confirm there are no pending demands.
Add deductor TANs, choose the applicable TDS section (e.g., Sec 194C for contractors, Sec 194J for professionals, Sec 195 for NRIs), requested lower rate (e.g., 0.5% or 0%), and estimated amount of receipts.
Attach computation sheets and contract agreements in PDF format (under prescribed MB limits). Sign the application using your Digital Signature Certificate (DSC Class 3) or Aadhaar OTP-based EVC and submit.
Section 197 certificates are issued for a specific financial threshold. If business turnover or sale proceeds exceed the approved amount:
Submit a supplementary Form 13 application on TRACES citing the original certificate reference number and explaining the business volume surge.
Until the amended certificate is issued, the deductor must deduct TDS at normal statutory rates on any invoice amount that exceeds the sanctioned threshold.
Once the Assessing Officer approves your Form 13 application on TRACES, a certificate with a Unique Certificate Number (UCN) is generated:
Log in to TRACES as Taxpayer, go to 'Statements / Forms' → 'Track Request for Form 13'.
When the status displays 'Approved / Certificate Generated', click on the request link.
Download the certificate PDF. It contains a dynamic QR code, the Assessing Officer's digital signature, the authorized TANs, the sanctioned lower TDS rate, and the validity ceiling amount.
Provide a copy of the downloaded certificate and 10-digit Certificate Number to your payer before they process invoices or disburse funds.
Proactive solutions when your Form 13 application faces bureaucratic or technical hurdles.
| Issue | Probable Cause | Recommended Resolution |
|---|---|---|
| Application status stuck on 'Pending with AO' for over 30 days | Check 'Communication History' in TRACES for pending queries | The Assessing Officer may have raised a clarificatory query. Respond electronically on TRACES. If no query exists, submit an online grievance on CPGRAMS citing Citizens' Charter timelines. |
| Form 13 rejected due to 'Outstanding Demand' | Check 'Pending Actions' → 'Response to Outstanding Demand' on e-Filing | Pay the valid demand or file an online disagreement with proof of prior challan payment. Once rectified, refile Form 13. |
| Deductor unable to validate certificate in TRACES | Ensure certificate was issued for the deductor's exact TAN | Deductors must navigate to TRACES → 'Validate Certificate u/s 197' and input the 10-digit Certificate Number and PAN to verify status. |
| NRI seller cannot log in to TRACES | Ensure PAN registration on TRACES as a Taxpayer | NRIs can register on TRACES using their PAN, recent 26AS details, or bank credentials without requiring an Indian mobile number. |
A Section 197 certificate is valid strictly for the financial year in which it is issued (from the date of issue until March 31). It automatically expires on March 31, and a fresh application must be filed for the subsequent financial year.
Yes. This is one of the most common uses of Form 13. When an NRI sells Indian property, the buyer is legally obligated under Section 195 to deduct up to 20%–30% TDS on the entire sale value. By applying in Form 13, the NRI can get an order commanding the buyer to deduct tax only on the net capital gains calculated after indexation.
No. Section 197 certificates operate strictly prospectively. If a client or buyer has already deducted tax at the standard rate, they cannot reverse it based on a later certificate. You can only claim the excess tax as a refund when filing your annual ITR.
Yes. Companies, LLPs, and partnership firms whose expected tax liability is zero (e.g., due to carried forward business losses, depreciation, or export exemptions under Section 10AA) frequently obtain Form 13 certificates to avoid cash flow crunches.
No. Under the faceless electronic administration regime, the entire Form 13 procedure is conducted 100% online through the TRACES portal. All documents, queries, and responses are submitted digitally without physical visits to the tax office.
Statutory power enabling the Assessing Officer to grant lower or nil tax deduction certificates.
Checked on November 4, 2026
View Reference Document ↗Prescribes Form 13 application procedures, determination of estimated tax liability, and certificate issuance parameters.
Checked on November 4, 2026
View Reference Document ↗
Official consolidated annual tax credit statement on TRACES showing TDS deducted, TCS, advance tax, self-assessment tax, and high-value transactions
How to file your ITR on the e-Filing portal: choosing ITR-1, ITR-2, ITR-3 or ITR-4, AY 2026-27 due dates (including the extension for audit cases), belated, revised and updated returns, the 30-day e-verification rule, and downloading the ITR-V acknowledgement.
10-character number every TDS deductor and TCS collector must quote
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Tax-free, long-term savings scheme backed by Government of India
Governed by Section 197 of the Income-tax Act, 1961 and Rule 28 of the Income-tax Rules, 1962. Processed exclusively through the TRACES portal under digital signature.
Apply for Form 13 on TRACES Portal →