Form 179 Income Tax Rules 2026 pdf download and Key points
FORM NO. 179
[See rule 285(3)]
Certificate to be issued by the accountant under Schedule VI [Table: Sl. No. 10]
1. Purpose: Lowering Withholding Tax (TDS)
Form 179 is used by non-resident individuals, firms, or other entities (excluding foreign companies) to request the Assessing Officer to issue a certificate authorizing the deductor to deduct tax at a rate lower than the standard rate prescribed under the Act or the relevant DTAA (Double Taxation Avoidance Agreement).
2. Eligibility
The Applicant: Must be a non-resident (individual, HUF, firm, AOP, BOI).
Excluded: Foreign companies do not use this form; they generally use the corporate equivalent (Form 180) for similar relief.
The Income: Primarily for payments like fees for professional services, technical fees, royalty, or other specified sums where the standard withholding is higher than the actual tax liability.
3. Core Information Required
TRC (Tax Residency Certificate): You must provide details of your tax residency in the foreign country.
Estimated Total Income: A computation of the estimated income for the entire tax year in India.
Payer Details: Name, PAN/TAN, and address of the person(s) from whom the income is expected.
Proposed Rate: The specific lower rate at which the applicant wishes the tax to be deducted.
4. Documentation (Annexures)
As a CA, you would typically need to attach:
Copy of the Tax Residency Certificate (Form 10F equivalent info is now integrated into these smart forms).
Details of income from the same payer in the last 3 preceding years.
Contract or agreement copy with the Indian payer.
Declaration of “No PE” (Permanent Establishment) in India, if claiming DTAA benefits.
5. Validity of the Certificate
Once the AO processes Form 179 and issues the certificate:
It is valid only for the specific Tax Year mentioned.
It is applicable only to the specified payers and up to the threshold limit of payment mentioned in the certificate.
Comparison for Your Practice (Satbir Singh & Associates)
| Feature | Old Rule (1961) | New Rule (2026) |
| Form Number | Form 13 | Form 179 |
| Section | Section 197 | Section 395 |
| Applicability | General (Resident & NR) | Specific (Non-Resident non-corporate) |