Income tax · TDS and TCS

How do I get TDS deducted at a lower rate or not at all (Form 13, 15G and 15H)?

Short answer

If your total tax for the year will be nil, give the payer a declaration so no TDS is deducted on interest, dividends, rent and similar income: Form 15H if you are 60 or older, Form 15G otherwise (both replaced by Form 121 from tax year 2026-27). If your tax will be lower than the TDS but not nil, or the declaration route is not open to you, apply to the Assessing Officer for a lower or nil deduction certificate in Form 13 (now Form 128).

Declarations: Form 15G and 15H (now Form 121)

	Form 15G	Form 15H
Who	Resident individuals below 60, and HUFs (not companies or firms)	Resident individuals aged 60 or more
Condition	Tax on estimated total income for the year is nil, and the income covered does not exceed the basic exemption limit	Tax on estimated total income for the year is nil (no limit on the income covered)
Typical use	Bank and post office interest, dividends, rent, insurance commission, EPF withdrawal	The same

Give a fresh declaration to each payer at the start of each year, before the first payment, with your PAN. The payer must report it in its TDS statement.
A false declaration is an offence. Do not file one if your total income (including all interest) will be taxable.
From tax year 2026-27 a single Form 121 replaces both forms.

Lower or nil deduction certificate: Form 13 (now Form 128)

Use this when your actual tax will be lower than the TDS that would otherwise be deducted, for example a business with losses or low margins, a non-resident selling property, or a contractor with large expenses.

Apply on TRACES with projected income, past returns and details of the payers.
The Assessing Officer issues a certificate for a specified rate, payer and amount, usually valid for the year.
Give the certificate to the payer; TDS at the lower rate applies only up to the amount stated.

The certificate is not retrospective, so apply early in the year. Under the 2025 Act, more of these certificates are being issued automatically under set criteria.

If TDS is deducted anyway

You claim the TDS in your return and get the excess as a refund. See refund timelines.

Legal basis

Sections 197 and 197A, Income-tax Act, 1961, and the matching provisions of the Income-tax Act, 2025
Forms 13, 15G and 15H, Income-tax Rules, 1962; Forms 128 and 121, Income-tax Rules, 2026

Official sources

By CA Ameesh Gupta, FCA, DISA (ICAI) | Last reviewed: 7 November 2026. General information, not advice on your facts: the law changes and outcomes depend on the details of each case.