TDS Deduction: 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 great 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 low or zero TDS deduction. By filling this form, it can be ensured in advance that additional TDS is not deducted on 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. Many people’s monthly budget is affected and finally they have to apply for tax refund. To save them from this hassle, the government has provided Form-13 facility to the taxpayers.
This is a special form available under the Income Tax Act-1961, which allows taxpayers to apply for less or zero TDS deduction. That is, with its help, taxpayers can request in advance that TDS be deducted in the right proportion on their income sources. This saves them from additional deduction. This form is especially useful for those who receive income from bank interest, dividend, or other sources and whose income tax liability is zero.
Who should fill it
- 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 independent professionals, who want to reduce the TDS levied 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 March 15, 2025.
3. The application process for the upcoming financial year 2025-26 has also started.
Process of filling this form
- Check eligibility: First of all make sure that your income falls in the category on which low or zero TDS deduction may be applicable.
- Apply online: Login to the Income Tax Department portal. Fill Form-13 and upload the required documents.
- Get certificate: After submitting the application, the Income Tax Department will evaluate it and issue a certificate.
- 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 there is no TDS deduction.
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
- Visit the Income Tax Department portal (https://www.incometax.gov.in/iec/foportal) and login to your income tax account.
- Click on Form-13 for Lower/Nil Deduction of TDS.
- Fill in the required information and mention your income sources.
- Upload the required documents, which may include: Income Tax Returns of the last three years, bank statements, income certificate from employer or institution.
- Submit your application. After considering it, the department will issue the certificate.
What are its benefits
- Avoidance of additional TDS deduction: If you have less tax liability, then the TDS deduction can be reduced in advance.
- Improved cash flow: You will have more cash available, which will make it easier to plan your monthly finances.
- No need to apply for refund: Since TDS is deducted in the correct proportion in advance, you will not have to apply for tax refund later.
- Simple and fast process: After applying online, you can get the certificate within a few weeks.
- Ease in personal tax planning: You can manage your annual tax planning in a better way.
Most Read Articles:
- 8th Pay Commission: New update! Salary will increase but allowances will cut in 8th Pay Commission? know details
- 7th Pay Commission DA Hike: Great news for central employees, DA hike may be announced this week, salary may increase by this much
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
