Income Tax Dept Replaces Form 13 With New Form No. 128

The Income Tax Department has replaced the old form 13 with a new form no. 128 under the new Income Tax Act, 2025. It has been done for taxpayers so that they can avoid excess tax deductions or collections during the financial year. Now eligible individuals and businesses don’t have to wait for refunds later and can apply in advance for a lower or nil TDS or TCS rate. This process is fully online to avoid unnecessary cash flow pressure for taxpayers.

Form No. 128 helps taxpayers to apply for a certificate that permits tax deductions. This applies under Sections 395(1) and 395(3) of the new law. It is helpful for those individuals whose tax liability is expected to be lower than standard rates.

The form is optional, and both residents and non-residents can apply. If the tax is already deducted or collected, then the request will not be considered. That’s why the application must be filed before the income is credited or paid.

Individuals can apply for form no. 128 through the TRACES portal. Taxpayers just need to log in, select Form No. 128, enter estimated income and tax liability, upload documents, and complete e-verification. The form is not available for offline submissions.

All applicants have to provide estimated income details, tax calculations, previous income data if returns were not filed, and information on exempt income. A valid PAN is also mandatory.

After submission an acknowledgement receipt number is generated to track the request. Once the request is approved, the certificate can be downloaded online.

Taxpayers who are dealing with more than 100 payers can use Annexure-II to generate multiple child certificates. The form can also be revised or withdrawn before processing if needed.