Introduction Applying for a lower or nil TDS deduction certificate using Form 13 is an effective way to ensure better cash flow for clients, especially when their actual tax liability is lower than the TDS rates. CAs can help clients avoid excess deductions and refund delays by applying this at the right time.

Who Can Apply for Form 13?

• Resident individuals or entities expecting lower income.

• Non-residents receiving income subject to TDS.

• Freelancers, consultants, and businesses facing cash flow constraints.

Information Needed Before Application

• Estimated income and tax liability for the financial year.

• Past year tax returns.

• Details of ongoing and expected contracts subject to TDS.

• TAN and PAN of the deductor.

• Details of tax payments made (Advance Tax or Self-Assessment).

Step-by-Step Process to Apply

1. Login to TRACES Portal
   Visit www.tdscpc.gov.in > Login as taxpayer using PAN.

2. Navigate to Form 13
   Go to "Statements / Form" > "Request for Form 13."

3. Fill in Financial Estimates
   Enter estimated income, tax computation, and justification for nil/lower deduction.

4. Attach Supporting Documents

   • ITRs of previous 2-3 years

   • Computation sheets

   • Audited financials or bank statements

5. Submit the Request
   Once submitted, the Assessing Officer may raise queries or ask for clarification.

6. Track Status
   Use the TRACES portal to check updates or additional document requirements.

7. Receive and Share Certificate
   Once approved, download the certificate and provide it to the deductor.

Tips

• Apply early in the financial year.

• Ensure data accuracy to avoid rejection.

• Reapply if scope of business or contracts change during the year.