The income tax Form 13 is associated with TDS, which stands for ‘Tax Deducted at Source’. According to the Income Tax (IT) Act, TDS must be deducted at the time of any payment. TDS must be withheld by those making the payment. Before the deadline for TDS submission, TDS must be submitted to the IT Department. A taxpayer must submit Form 13 to the assessing officer (AO) to request a lower or no TDS under Section 197.
Payees may submit Form 13 if they feel that their income is not completely taxable in India. The official TRACES website accepts online submissions of this form. You must provide more evidence to support your claim of zero or minimal taxability in India.
The jurisdictional assessing officer (AO) of TDS must receive the application once it is complete in every way. After the application is received, it must be processed within 30 days. Before granting the certificate or rejecting the application, the AO will analyse the supplied documents and information and may request more information or documents.
See also: How to claim foreign tax credit with Form 67 Income Tax?
Income tax Form 13: How to file?
A taxpayer must file Form 13 to request a lower or no TDS deduction under Section 197 of the Income Tax Act. The taxpayer must enter several details in this Form 13. These include:
- Name and PAN No.
- Information about the reason why the payment is being made
- Information about earnings for the past three years and expected earnings for the current year
- Information on tax payments over the last three years
- Information on taxes paid or withheld for the current year
- A rough estimate of the current year’s tax liability
- Email ID
- Mobile number
know about: form 67 income tax
Income tax Form 13: Eligibility
A payee or taxpayer may submit an application to the Assessing Officer (AO) for a certificate authorising no or lower TDS/TCS deductions. The aforementioned salaries are eligible for this form:
- Salary Income
- Dividend Income
- Interest Income
- Contactors Income
- Insurance Commission
- Brokerage or Commission
- Lottery Prize/ Commission/ Remuneration
- Rent Income
- NRI Income u/s 195
- Compensation on acquisition of Immovable Property
- Income from units of investment fund
- Income from investment in securitisation trust
Income tax Form 13: When to file?
A request may be submitted at any time during the fiscal year by the payee. Filing an application at the start of the year for money earned all year long is, however, a smart idea.
Income tax Form 13: Details required for filing
- Person’s name and PAN number.
- The type of compensation received.
- Income information for the previous four years.
- Tax paid or deducted for the current financial year.
- Projected income for the current year.
- Details of exempt income for the current year, if any.
Income tax Form 13: Documents required
Following documents are required for filing Form 13:
- Financial statements that have been audited for the last three years
- Projected balance sheets and profits for the current and previous financial years (self-attested by an authorised person)
- Copies of TDS returns for the last two fiscal years that have been filed and acknowledged
see about: TDS on salary under Section 192 of income tax act
Income tax Form 13: Application process
The payee may submit the Form 13 application to the AO in the following ways:
- First, register yourself on the TRACES site.
- Login to TRACES as a “Taxpayer” and choose the “Request for Form 13” option under the “Statements / Form” tab.
- Once you’ve filled out all the required fields and uploaded the necessary files, Form 13 must be submitted either using a digital signature or an EVC.
FAQs
What are the documents required for Form 13?
The documents required include audited financial statements for the last three years, projected balance sheet and profit and loss for the current and previous financial years (self-attested by an authorised person) and TDS returns for the recent two fiscal years that have been acknowledged.
How long does it take for Form 13 to be approved?
The application must be resolved within 30 days of the end of the month it was received once it has been presented to the jurisdictional assessing officer (TDS) in its entirety.