Form 128 Income Tax 2025 pdf Download and Key Points
Form 128 Income Tax 2025 pdf Download and Key Points
Key Points about Form 128 Income Tax 2025
Form No. 128 under the Income-tax Rules, 2026 replaces the old Form No. 13 used under the Income-tax Act, 1961. It is an application filed by a taxpayer to obtain a certificate from the Assessing Officer authorizing the payer to deduct or collect tax at source (TDS/TCS) at a lower or nil rate.
Here are all the key points regarding Form No. 128:
1. Governing Provisions
- Form 128 is governed by Section 395(1) for TDS and Section 395(3) for TCS under the new Income-tax Act, 2025.
- The relevant procedural rules are contained in Rule 213 of the Income-tax Rules, 2026.
2. Applicability and Eligibility
- Who can file: Any person, whether a resident or a non-resident, seeking a lower or nil deduction/collection of tax can file this form. This includes registered non-profit organizations, specified entities, businesses, professionals, and individuals.
- Is it mandatory? No, filing Form 128 is entirely optional and is only required if the taxpayer wishes to avail the benefit of a lower or nil withholding rate.
3. Filing Timelines and Frequency
- When to file: There is no specific time limit, but the application must be filed as early as possible and well before the date of the transaction. Once the transaction is completed and the tax is deducted/collected, the application cannot be processed.
- Frequency: There is no statutory limit on the number of times Form 128 can be filed in a Tax Year. A taxpayer can file multiple applications if their estimated transaction or income changes during the year.
4. Mode of Filing and Process
- Online Only: Form 128 cannot be filed offline. It must be mandatorily submitted electronically through the TRACES portal (www.tdscpc.gov.in).
- Process: The applicant logs into TRACES, navigates to “File Forms”, fills out the online form, uploads supporting documents, and submits it using e-verification.
- Acknowledgment: Upon successful submission, an Acknowledgment Receipt Number (ARN) is generated.
- Withdrawal: The applicant can withdraw their Form 128 application at any time before it is processed by the department.
5. Mandatory Requirements and Documents
- PAN is Mandatory: The form cannot be submitted without a Permanent Account Number (PAN).
- Supporting Documents: The applicant must attach a computation of their estimated total income and tax liability for the current Tax Year.
- Past ITR Details: If the Income Tax Return (ITR) was not filed for any of the preceding four tax years, the computation of income for those missing years must be attached.
- Exempt Income: A note justifying any income claimed to be exempt must also be provided.
6. Outcome and Certificate Issuance
- Once the Assessing Officer is satisfied that the taxpayer’s estimated total income justifies a lower/nil rate, they will digitally issue the certificate specifying the applicable rate and its validity period.
- This certificate can be downloaded directly from the TRACES portal.
7. Special Provision: Annexure-II and “Child Certificates”
- If an applicant expects to receive payments from more than 100 deductors and does not have their specific details at the time of application, they can apply using Annexure-II of Form 128.
- The Assessing Officer will issue a main certificate solely in the applicant’s name.
- The applicant must then log in to TRACES to generate individual “Child Certificates” for each specific deductor as and when their details become known.
- Multiple child certificates can be generated, provided the total amount remains within the limit authorized by the main certificate. The deductor will use this child certificate to apply the lower rate and quote it in their TDS return.
8. Structure of the Form
- Part A: Captures basic details like Name, PAN, Status, Residential Status, and Contact details.
- Part B: Captures the category of the applicant and the specific details of the request (whether applying with deductor details or without).
- Part C: Captures details of any outstanding tax demands and the computation of estimated taxable income and tax liability.
- Part D & E: Contains the mandatory declarations regarding the filing of past ITRs and confirmation that the income is not clubbed with another person’s income.
- Annexure I & II: Captures the transaction-level details, including the deductor’s TAN/PAN (if known), estimated sum, and the requested rate of deduction.
Download Form 128 Income Tax 2025
Form 128 Income Tax 2025 pdf Download Click Here
How to apply in Form 128 Income Tax on traces for lower TDS Certificate
Instructions for Form 128 Income Tax 2025
1. What is Form No. 128?
Ans: Form No. 128 is used by a taxpayer to apply for a certificate authorizing the payer to deduct/collect tax at a lower or nil rate under section 395(1)/395(3) of the Income-tax Act, 2025.
2: Who is required to file Form No. 128?
Ans: Any person (resident or non-resident) seeking certificate for no deduction of tax, or deduction or collection of tax at a lower rate under section 395(1) (for TDS) or section 395(3) (for TCS) of the Income-tax Act, 2025 is required to file Form No. 128
3: Is filing of Form No. 128 mandatory?
Ans: Form No. 128 is optional and is to be filed only if a person wishes to obtain a certificate for lower deduction/collection or nil deduction of tax. The application must be furnished electronically after logging into the TRACES portal of Income-tax Department (URL:
www.tdscpc.gov.in).
4: What is the time limit for filing Form No. 128?
Ans: Since the Lower/Nil Deduction Certificate should be provided to the payer before the deduction or collection of tax on the income or transaction as the case may be, therefore, the application for obtaining the certificate in Form No. 128 should be filed with Incometax Department as early as possible. The applicant must apply for certificate well before the date of transaction. Such application cannot be processed once the transaction involving TDS/TCS is completed.
5: How many times can Form No. 128 be filed in a Tax Year?
Ans: There is no statutory limit on the number of times Form No. 128 can be filed in a Tax Year.
A taxpayer may file more than one application in Form No. 128, subject to any changes in the estimated transaction/income during the course of the Tax Year.
6: What documents are required to be attached while filing an application in Form No. 128?
Ans: The following documents are required to be attached
Computation of estimated total income and tax liability for the Tax Year.
If ITR was not filed for any of preceeding four tax years, then computation of income for such Tax Year.
A note for income claimed to be exempt and not included in the total income, if applicable.
7: Having filed an application in Form No. 128, can the same be withdrawn?
Ans: Yes, an application in Form No. 128 can be withdrawn till the time the same has not been processed.
8: Can Form No. 128 be filed offline?
Ans: No. Form No. 128 has to be mandatorily furnished electronically through the TRACES portal of Income-tax Department.
9: What is the process flow of filing Form No. 128?
Ans: The process flow includes following steps –
a) Login to the TRACES Portal
b) Navigate to “TRACES login → Dashboard → e-file and view → File Forms → Form No. 128”
c) Fill the Online Form
d) Upload Supporting Documents
e) E-Verify and Submit the Form
10. What if the applicant does not have a PAN?
Ans: Form No. 128 cannot be submitted without a PAN.
11. Where can the details of the certificate issued be viewed?
Ans: Once processed, the digitally issued certificate can be accessed/downloaded through the TRACES portal, using the following options:
TRACES login → Dashboard → Downloads → Lower/Nil Deduction/Collection Certificates
or
“TRACES login → Dashboard → e-file and View → View Filed Forms and Statements
12. Can Form No. 128 be filed if the details of the payers are not available?
Ans: Yes. If the number of persons responsible for deducting tax is likely to exceed 100 and details of such persons are not available with the applicant at the time of making application, then the applicant should fill the Annexure-II of Form No. 128.
13. How the certificates will be issued in case Annexure-II of Form No. 128 was filed?
Ans: In case application is made using Annexure-II of Form No. 128, the certificate will be issued in the name of the applicant. As and when the details of the payers are available with the applicant, he is required to generate and provide “Child Certificates” to each of the
person responsible for deducting tax.
14. What is a Child Certificate?
Ans: It is issued by the taxpayer based on the certificate issued by the Assessing Officer, by entering the details of the specific deductors who are required to deduct tax on transaction or income to be paid or credited to the taxpayer. Multiple child certificates can be issued
subject to the limit mentioned in the main certificate issued by the AO. The deductors should then deduct the tax as per the child certificate provided by the taxpayer and quote the details of the same in the TDS statement while reporting the transaction.
15. How to generate child certificates?
Ans: The applicant is required to generate child certificates in case of application filed in Annexure-II of Form No. 128 using the following path: TRACES login → Dashboard → Services → Generate and Download Child Certificate issued u/s 395(1) (Form No. 128 Annexure II)
16. How will applicant know whether the Form No. 128 submitted by him has been accepted by the Income-tax Department?
Ans: After filing Form No. 128 on the TRACES portal of Income-tax Department, the taxpayer receives an Acknowledgment Receipt Number (ARN) on successful submission of the Form
Guidance on Form 128 Income Tax 2025
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