Taxpayers can now reduce or eliminate excessive Tax Deducted at Source (TDS) with the newly introduced Form 13 by the Income Tax Department. This initiative aims to help individuals avoid unnecessary deductions and prevent the hassle of claiming refunds later. Here’s how you can apply before the March 15 deadline.
The Income Tax Department has rolled out Form 13 for the financial year 2025-26. This form allows taxpayers, particularly salaried individuals, to request a lower or zero TDS rate. By applying for this, they can ensure that excess tax is not deducted from their income and thereby minimize the need for a refund claim.
Additionally, the department has introduced Form 15E, specifically for Indian residents making payments to non-residents who wish to reduce their TDS burden.
Both Form 13 and Form 15E are now available for the financial year 2025-26. However, for the ongoing financial year 2024-25, taxpayers must submit these forms by March 15, 2025. If you need a lower TDS certificate for FY 2024-25, you only have a limited time to apply.
Form 13 is applicable if:
Your total tax liability is lower than the amount of TDS deducted by your employer or other entities.
Your income falls under specific tax sections eligible for reduced TDS rates.
Applying for Form 13 ensures that only the correct amount of tax is deducted at the source, preventing overpayment.
Once you complete and submit Form 13, the Income Tax Department will issue a certificate specifying the correct TDS rate applicable to your income. This certificate must be provided to your employer, bank, or any institution deducting TDS so they apply the correct rate, thereby avoiding excess deductions and refund claims.
Taxpayers with the following types of income can apply for a lower or zero TDS rate using Form 13:
| Section | Applicable Income |
|---|---|
| 192 | Salary |
| 193 | Interest on Securities |
| 194 | Dividends |
| 194A | Other Interest Income (excluding securities) |
| 194C | Contractor’s Income |
| 194D | Insurance Commission |
| 194G | Commission, Prize, or Remuneration on Lotteries |
| 194H | Commission or Brokerage |
| 194I | Rent |
| 194J | Fees for Technical or Professional Services |
| 194LA | Compensation for Property Acquisition |
| 194LBB | Income from Investment Funds |
| 194LBC | Income from Securitization Trust |
| 195 | Income of Non-Residents |
To prevent unnecessary tax deductions, eligible taxpayers must act swiftly and apply for Form 13 before the deadline. This move ensures financial ease by reducing tax liability at the source. Don’t miss the March 15 deadline—file now and manage your taxes efficiently!
