TAX DEDUCTION CERTIFICATE U/S 197 [FORM NO. 13]
Form No. 13 Is an application by a person for a certificate under section 197/206C (9) of the income-tax Act,1961 for No deduction/collection of tax or deduction/collection at lower rate.
WHO CAN SUBMIT APPLICATION IN FORM 13
Registered Taxpayers (Residents/ Non-Residents/ Not Ordinarily Residents) can submit application for Form 13, online mode from TRACES website.
INCOME COVERED IN SECTION 197
Section 197 application can be made by the recipient of income in case of the following category of receipts where TDS is required to be made under the following Sections:
Section 192 – Salary income
Section 193 – Interest on securities
Section 194 – Dividends
Section 194A – Interest other than interest on securities
Section 194C – Contractors income
Section 194D – Insurance commission
Section 194G – Commission/remuneration/prize on lottery tickets
Section 194H – Commission or brokerage
Section 194-I – Rent
Section 194K - Income from units
Section 194J – Fee for Professional or technical services
Section 194LA – Compensation on acquisition of immovable property
Section 194LBB – Income in respect of units of investment fund
Section 194LBC – Income in respect of investment in securitization trust
Section 194M - Payment of sum by certain individuals or HUFs
Section 194O - Payment of certain sums by E-commerce operator to E-commerce participants.
Section 195 – Income of non-residents
Timeline for Making the Application
The income-tax provision does not provide for a deadline to make an application under Section 197. However, as TDS is made on the income of an ongoing financial year, it is advisable to make an application at the beginning of the financial year in case of regular income throughout the financial year and as and when the need arises in case of one-off income.
Steps to Apply for Form 13 Online
Login to TRACES Portal: Go to the TRACES portal and log in using your credentials.
Navigate to Form 13: Find the option to apply for Form 13 for lower or non-deduction of TDS.
Fill in the Details: Enter all the necessary details, including your income estimates, tax liability calculations, and reasons for requesting lower or no TDS.
Upload Supporting Documents: Attach relevant documents, such as financial statements, tax returns, and any other supporting evidence.
Submit the Application: After filling in all the details and uploading documents, submit the application.
Acknowledgement and Processing: An acknowledgement receipt will be generated. The Assessing Officer will review the application and may request additional information or clarification.
Issuance of Certificate: If the AO is satisfied with the application, a certificate will be issued authorizing the payer to deduct tax at a lower rate or not at all.
Documents are required to be uploaded at the time of submitting request in form 13
Documents to be Submitted with Form 13
Signed Form 13
Copies of return of income along with enclosures and acknowledgement for the previous 3 financial years
Copies of assessment orders for the previous 3 financial years
In case of the assessee having business or professional income, copies of financial statements along with audit reports if any for the
previous 3 financial years
Projected profit and loss account for the current financial year
Computation of income statement for previous 3 financial years and estimated computation for the current financial year
Copy of PAN card
Tax Deduction Account Number of all parties responsible for paying you
E-TDS return acknowledgement for the previous 2 financial years
Estimated income during financial year
Any other documents depending on the nature of the income
TDS default earlier
