Form 13 lower TDS deduction certificate u/s 197

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This discussion clarifies how to calculate estimated total income when applying for a lower TDS deduction certificate under Section 197. The consensus is that the tax liability should be calculated without factoring in the TDS that would have been deducted at the prescribed rates. Therefore, when filling out Form 13, you should not include the estimated TDS amount in your income computation.

Vaishnavi

Vaishnavi (Querist)
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28 August 2025 While computing estimated total income for the PY in which lower deduction is sought, should the TDS that will be actually deducted at prescribed rates (if not for the 197 certificate) be mentioned against TDS?

For example, if its LTCG on sale of property, actual tds rate is 12.5% and tds will amount to, say 5 lakhs. In the income estimation, after computing tax liability,
(i) should this 5L be shown as estimated TDS and show tax refundable as 5L, or,
(ii) TDS be left blank and just show the tax liability for the estimated income?