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Home > Income Tax > Service Plans > Form 128 (aka Form 13) Filing Service Plan and Pricing Last Updated: Apr 30th 2026

Lower TDS Deduction Filing

Form 128 / Form 13
Nil / Lower TDS Filing

Consultation, tax liability computation, and filing of Form 128 (formerly Form 13) with TRACES for Nil or Lower TDS / TCS deduction. Turnaround: 2–5 working days to file; AO processing takes 30–60 days.

Form 128 / Form 13Nil TDS CertificateLower TDS / TCSNRI Property SaleDTAA CheckTRACES Filing
📋What's Included
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Consultation & Guidance
Consultation and guidance on the need for Form 128 (formerly Form 13) and whether Nil or Lower deduction applies to your situation.
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Tax Liability Computation
Computation of Tax liability for the financial year in which Form 128 is filed to determine the appropriate lower or nil deduction rate.
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DTAA & Residency Check
Analysis of transaction type, tax residency status, and DTAA applicability between India and the relevant country to support lower withholding claims.
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Form 128 Filing on TRACES
Filing of Form 128 (aka Form 13 of IT Act 1961) on the TRACES portal. The filed form is forwarded to the Jurisdictional Assessing Officer for approval.
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Filed Copy & Follow-up
Team will forward a copy of the filed Form 128 and assist with any clarifications or documentation requests raised by the Assessing Officer.
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Expert Support
Expert support through email, phone & chat during business hours. Tax filing (ITR), if required as part of this process, would be a separate service.
🎯Who Should Buy?
Any person who wants to apply for Nil or Lower deduction of TDS under the Income Tax Act
Any person who wants to apply for Nil or Lower collection of TCS from a seller of specified goods
NRIs selling property in India who want to reduce the TDS deducted by the buyer (typically TDS on sale value vs capital gain)
Resident or non-resident individuals looking to obtain a Nil / Lower withholding tax certificate from the Assessing Officer
💡 Note: Under the Income Tax Act 2025, Form 13 has been renumbered as Form 128. Both names refer to the same application for lower / nil TDS or TCS deduction filed on the TRACES portal.
⚙️How It Works
1
Receive & Review Documents
Upon receiving your documents, our expert will call you before starting the process to understand your transaction and residency status.
2
Analyse Transaction & Tax Residency
Expert analyses the transaction type, understands your tax residency status, and checks DTAA applicability and requirement to file taxes.
3
Compute Taxes & Determine Lower Rate
Tax liability is computed to determine the applicable lower TDS / nil TDS rate. Information is exchanged through email and phone calls as necessary.
4
File Form 128 on TRACES
Team files Form 128 (Form 13) on the TRACES portal. The application is automatically forwarded to the Jurisdictional Assessing Officer for approval.
5
Filed Copy & AO Processing
Team forwards a copy of the filed form to you. Application filing: 2–5 working days. Govt. AO processing: ~30–60 days. AO may request additional documents.
📁Documents to Submit
Last 4 Years' ITR or IT Login
Last 4 financial years' Income Tax Returns, or Income Tax portal login credentials for our team to access them directly.
Current FY Income Details
Estimated income details for the current financial year in which Form 128 is being filed.
Deductor / Collector TAN
TAN of the responsible person who is deducting TDS or collecting TCS from the transaction amount.
Nature of Income & Proposed Rate
Nature of income (capital gains, rent, dividend, etc.), estimated income from the transaction, and the proposed rate of lower deduction or collection.
Sale / Purchase Agreements
Copy of Agreement of Sale (at time of sale) and Sale Deed (at time of original purchase) — required for property transactions.
NRI Passport (if applicable)
Copy of Passport required for NRIs to establish non-resident status when filing Form 128 for a property sale or other NRI income.
Additional documents the Assessing Officer (AO) may request:
📄 Copy of Sale Deed at the time of original property purchase📝 Draft Sale Agreement with the new buyer🏦 Bank statement showing payments made at the time of purchase📍 Circle rate as on the date of Form 128 application🏠 Home Loan disbursement letters (if applicable)🔨 Proofs for Cost of Improvement (bills, agreements, etc.)📑 Any other documents requested by the Assessing Officer
Every Plan Includes
Faster Service
Application filed in 2–5 working days
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Transaction Guidance
Expert clarity on transaction type and tax impact
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Tax Filing Guidance
Guidance on ITR filing obligations as needed
✂️
TDS Reduction
Guidance on optimal lower deduction rate to claim
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DTAA Analysis
Check of India's tax treaty with relevant country
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AO Follow-up
Support for AO clarification requests post-filing

Paying TDS at full rates when your actual tax liability is lower is a cash flow problem, not a compliance requirement. Form 128 exists precisely for this — to let the department assess your actual liability upfront and issue a lower-rate certificate. Filing it correctly and promptly is what separates a smooth property transaction from months of waiting for a refund.

— EZTax.in
Frequently Asked Questions
What is Form 128 (aka Form 13)?

Form 128 (Form 13 under IT Act 1961) is the application to apply for Lower or Nil deduction / collection of TDS / TCS. It must be filed on the TRACES portal. Once submitted, it is forwarded to the Jurisdictional Assessing Officer for review and approval. The certificate, if issued, specifies the lower or nil rate at which the deductor / collector must deduct or collect tax.

I am an NRI selling property in India to a resident buyer. Do I need to apply Form 128?

Yes — highly recommended. When an NRI sells property, the buyer typically deducts TDS on the full sale value at 20–30%, rather than on the capital gain alone. This results in over-deduction. By filing Form 128, the AO can assess your actual capital gain tax liability and issue a lower-rate certificate, significantly reducing the TDS deducted by the buyer and improving your cash flow during the transaction.

Can I apply for Nil deduction of TDS in Form 128?

Yes. If your total income for the year is below the basic exemption limit or you have no taxable income after deductions, you can apply for a Nil deduction certificate in Form 128. The AO will assess your income and, if satisfied, issue a nil-rate certificate for that financial year.

How long does it take to get the Form 128 certificate?

Filing by our team takes 2–5 working days. After submission, the Assessing Officer typically takes 15 to 60 days to review and approve. If the AO requires additional documentation, they will raise a clarification query and the timeline extends until you respond. Plan ahead — especially for property transactions where registration timelines are tight.

What happens if Form 128 is not approved by the Assessing Officer?

If the AO does not approve Form 128, TDS will be deducted at the applicable full rates under the Income Tax Act (20% for long-term capital gains on property for NRIs, or higher for short-term gains). You can then claim a refund of the excess TDS by filing your Income Tax Return for that year. The refund process typically takes 3–12 months from the date of filing.

Does the Form 128 certificate have a validity period?

Yes. A Form 128 certificate is generally valid from the date of issuance to the end of the financial year, unless it is cancelled by the AO before that. If your transaction is expected to span multiple financial years, a fresh Form 128 application may be required for each year.

What is the Circle Rate of a property, and why does it matter for Form 128?

Circle rates (also called guidance values or ready reckoner rates) are the minimum per-unit-area prices for property transactions set by state / local government revenue authorities. The AO uses the circle rate to assess the deemed sale consideration for capital gains computation. If the actual sale price is below the circle rate, the circle rate is taken as the sale price under Section 50C. Refer to Circle Rates by State for state-specific rates and details.

💬Client Reviews
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Disclaimer: This article provides an overview and general guidance, not exhaustive for brevity. Please refer Income Tax Act, GST Act, Companies Act and other tax compliance acts, Rules, and Notifications for details.