How To Apply for Nil or Lower TDS Deduction for NRIs and Residents?

Shreyans Panchal | Last updated: 22 May 2025

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Section 197 of the Income Tax Act allows residents and NRIs with lower tax liabilities to apply for a certificate to reduce or eliminate Tax Deducted at Source (TDS) on certain incomes. This prevents excess TDS, improves cash flow, and aligns tax deductions with actual tax payable. The application is made through Form 13 on the TRACES portal, requiring details of estimated income, tax computation, and supporting documents.

Section 197 of the Income Tax Act, 1961 offers relief to taxpayers-both residents and non-residents Indians (NRIs)-from excess Tax Deducted at Source (TDS). It allows individuals or entities with lower tax liability to apply for a certificate permitting NIL or reduced TDS deduction on specified inc

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About the Author

Shreyans Panchal

CA Final Student

Finance and Taxation Professional with 3+years of experience in Indian Taxation.CA final student having excellent knowledge in Indian Startup ecosystem and Investment strategies.

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