Eligibility
Whether your actual tax justifies a lower or nil rate.
All taxation services
Taxation
Lower Deduction Certificate
When customers deduct more tax from your receipts than you will actually owe, cash gets stuck for a year. FinAura applies for a lower or nil deduction certificate, Form 128 under the Income-tax Rules, 2026 (earlier Form 13), with projections that support it, so tax is deducted at your actual rate from the start.
- Led by Chartered Accountants
- GST and income tax in one team
- Bangalore and across India
What is covered
What We Handle
From eligibility to a certificate your payers can act on.
Projections
Income and tax projected for the year, with the working.
Application
Form 128 filed online with the supporting details.
Follow-up
Queries from the officer answered until the certificate is issued.
Payer communication
Certificate shared with each payer so they apply the lower rate.
Property sales by NRIs
Certificates for NRI property sales, based on the real gain.
How the month runs
How a Certificate Is Obtained
Assess, prepare, apply and use.
Step 1
Assess
- Tax worked out
- Payers listed
- Eligibility confirmed
Step 2
Prepare
- Projections
- Past returns
- Details per payer
Step 3
Apply
- Form 128 filed
- Queries answered
- Certificate issued
Step 4
Use
- Shared with payers
- Deductions checked
- Renewed next year
Your part
What We Need From You
- 01Past returns and financial statements
- 02Projected income for the year
- 03List of payers and expected receipts
Our part
What You Get
- A certificate for a lower or nil rate
- Less cash stuck in TDS
- Payers informed
- Renewal planned for next year
A common question
What happened to Form 13?
Under the Income-tax Rules, 2026, the application for a lower or nil deduction certificate is Form 128. People still search for it as Form 13.
The certificate applies to the payers and amounts named in it, for the year, so it is worth applying early.
See TDS complianceCash flowLess money stuck in TDS
Form 128Applied and followed up
ProjectionYour real tax for the year
Who it is for
Who Applies With Us
Low-margin businesses
Contractors and traders where TDS exceeds tax.
Businesses with losses
Where little or no tax is payable.
NRIs selling property
Tax on the gain, not the sale price.
Non-residents with Indian income
Treaty rates on fees and royalties.
The rules, in plain English
What the Law Says
Income-tax Act, 2025
In force from 1 April 2026
Income earned up to 31 March 2026 is still assessed under the Income-tax Act, 1961. From 1 April 2026 the 2025 Act applies, with a single 'tax year', renumbered sections and new form numbers under the Income-tax Rules, 2026.
Official source: incometax.gov.inIncome-tax Act, 2025
Section 395
A person can apply for a certificate for lower or nil deduction or collection of tax where their total income justifies it (earlier Section 197).
Official source: incometax.gov.inIncome-tax Rules, 2026
Form 128
The application for a lower or nil deduction or collection certificate, earlier Form 13.
Official source: incometax.gov.inThis is general information, not advice for your situation; we confirm what applies to you before any work starts.
Questions we get asked
Lower Deduction Certificate Questions, Answered
What is a lower deduction certificate?
A certificate from the income tax department telling specified payers to deduct tax at a lower rate, or not at all, because your actual tax is lower.
Is Form 13 still used?
Under the Income-tax Rules, 2026 the application is Form 128. Many people still call it Form 13.
Can NRIs use it for a property sale?
Yes. It is one of the most common uses, so tax is deducted on the expected gain rather than on the full sale price.
How long is it valid?
For the year and the payers named in it, up to the amount stated.
Often Taken Together
All 16 Taxation services01TaxationTDS and TCS ComplianceDeductions checked at source, challans paid, quarterly returns filed and certificates issued to your vendors and employees.02TaxationNRI TaxationReturns, residential status, rental and capital gains computations and repatriation paperwork for non-resident Indians.03TaxationCapital Gains Computation and PlanningGains on property, shares and business assets computed correctly, with exemptions and timing considered before the sale.04Accounting & FinanceFinance OperationsReconciliations, payables, receivables and a predictable month-end close.05Accounting & FinanceAccounting & BookkeepingClean, current books every month, reviewed by a Chartered Accountant.