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
Instructions for Form 128 Income Tax 2025
Guidance on Form 128 Income Tax 2025
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