Banks, companies, employers and other institutions deduct TDS at the rates prescribed under the Income Tax Act- 1961, even if the total tax liability of the taxpayer is not that much. If more TDS is being deducted on your income, then filling Form-13 can be a good solution.
TDS Deduction: If more TDS is being deducted on your income and you want to avoid the hassle of tax refund every year, then filling Form-13 can be a great solution. The Income Tax Department has recently released this form for the financial year 2025-26, which can provide taxpayers the facility of less or zero TDS deduction. By filling this form in advance, it can be ensured that additional TDS is not deducted on the income.
What is Form-13
It is often seen that banks, companies, employers and other institutions deduct TDS at the rates prescribed under the Income Tax Act- 1961, even if the total tax liability of the taxpayer is not that much. The monthly budget of many people is affected and finally they have to apply for tax refund. To save this hassle, the government has provided the facility of Form-13 to the taxpayers.
This is a special form available under the Income Tax Act-1961, which allows taxpayers to apply for lower or zero TDS deduction. That is, with its help, taxpayers can request in advance that TDS be deducted in the correct proportion on their income sources. This saves them from additional deduction. This form is especially useful for those who receive income from bank interest, dividends, or other sources and whose income tax liability is zero.
Who should file
– Salaried employees, whose total tax liability is less than the TDS deduction.
– Senior citizens, whose income comes from pension, interest or rent.
– People who are receiving income from rent, dividend or other investment sources.
– Businessmen and freelance professionals, who want to reduce the TDS on their annual income.
– People whose income comes from investments but want to avoid TDS more than the standard deduction.
What is the last date to fill Form-13
1. The last date to apply for the current financial year 2024-25 is 15 March 2025.
3. The application process has also started for the upcoming financial year 2025-26.
Process of filling this form
1. Check eligibility: First of all make sure that your income falls in the category on which low or zero TDS deduction may be applicable.
2. Apply online: Login to the Income Tax Department portal. Fill Form-13 and upload the required documents.
3. Get certificate: After submitting the application, the Income Tax Department will evaluate it and issue a certificate.
4. Give certificate to employer/bank: Give this certificate to the concerned institution (employer, bank, financial institution) so that they deduct TDS at the correct rate or TDS is not deducted.
Applicable to these income sources
Salary, Interest on securities, Dividend, Bank interest, Contractual income, Income from commission, Rent, Payment for professional services, Income of non-resident Indians
How to apply online
1. Visit the Income Tax Department portal (https://www.incometax.gov.in/iec/foportal) and login to your income tax account.
2. Click on Form-13 for Lower/Nil Deduction of TDS.
3. Fill in the required information and mention your income sources.
4. Upload the required documents, which may include: Income Tax Returns for the last three years, bank statements, income certificate from employer or institution.
5. Submit your application. After considering it, the department will issue the certificate.
What are its benefits
1. Avoidance of additional TDS deduction: If you have less tax liability, then TDS deduction can be reduced in advance.
2. Improvement in cash flow: You will have more cash available, which will make it easier to plan monthly finances.
3. No need to apply for refund: Since TDS is deducted in the correct proportion in advance, there is no need to apply for tax refund later.
4. Simple and fast process: After applying online, the certificate can be received within a few weeks.
5. Ease in personal tax planning: You can manage your annual tax planning in a better way.
