Resident professional / contractor
Higher 10% TDS under 194J / 194C but actual tax is much lower.
- Form 13 with projected P&L
- Last 3 years' ITR + computation
- Bank statements + invoices
- AO certificate at 1-3% (typical)
Lower / Nil TDS Certificate
Cut your TDS at source - Form 13, properly drafted.
When TDS deducted at the statutory rate is far higher than your actual tax liability, you can apply for a Lower Deduction Certificate (LDC) under Section 197 / 197A using Form 13. The AO issues a certificate that lets the deductor withhold at a reduced (or nil) rate - improving your cash flow.
Qualified CA / CS partners20-45 working daysBest for: Contractors, consultants, professionals, property sellers with low actual tax
Starting at
₹6,999 onwards
LDC (Form 13)
Contractors, consultants, professionals, property sellers with low actual tax
Form 13 drafting + AO submission
Income & tax projections
Online TRACES filing
AO follow-up till certificate issued
Timeline
20-45 working days
What it is
LDC (Form 13), explained in plain English.
A Lower Deduction Certificate (LDC) is the AO's order that authorises a deductor (employer, payer, buyer) to deduct TDS at a rate lower than the statutory rate - or sometimes nil. Section 197 allows individuals / firms / companies whose final tax liability is below the TDS rate to free up working capital instead of waiting 12-18 months for refunds.
TL;DR
If your final tax << TDS rate, file Form 13 with projected income, expected tax and supporting evidence. AO issues a certificate. Deductor uses the certificate to deduct lower TDS.
Key terms
The vocabulary you'll see on the portal.
Section 197
Empowers the AO to issue a lower / nil TDS certificate on application.
Form 13
The application form, filed online via TRACES along with projections and proofs.
Validity
Certificate is for the financial year (or part of it); fresh application each FY.
Threshold income
AO compares projected total tax with TDS to be deducted at standard rate - certificate granted only if mismatch is material.
Routes & scenarios
Match the situation to the right fix.
Property seller (resident)
1% TDS under 194-IA on full consideration but cap gains tax is lower.
- Sale agreement + cost certificates
- Capital gains computation
- Reinvestment plan (Section 54 / 54F)
- AO certificate authorising lower 26QB rate
Lender / interest receiver
10% TDS on interest under 194A, but total income below taxable threshold.
- Form 15G / 15H (if eligible)
- Form 13 if not eligible for 15G / 15H
- Senior citizen route via Section 80TTB
The process
LDC (Form 13) - from kickoff to confirmation.
01
Projections
We build the FY projection: gross receipts, expenses, taxable income and tax due - compared to TDS rate.
02
Form 13 drafting
Application, declarations, supporting computations and last-3-year ITRs assembled.
03
TRACES submission
Filed online via TRACES; PAN-validated; AO assigned.
04
AO follow-up
Queries answered, justifications submitted; certificate issued, copy shared with each deductor.
Documents required
What we'll need from you.
Upload via our secure portal. We pre-check every scan before filing - cuts portal rejections by ~90%.
PAN + Aadhaar
Last 3 years' ITR + computation
Bank statements + last 12 months' invoices
Estimated FY income / tax computation
Deductor's TAN + name (one row per deductor)
Sale agreement + cost basis (property sellers)
LDC (Form 13) FAQ
Common questions, answered by partners.
Still unsure if LDC (Form 13) is right for your case? Book a free 20-minute consult - a senior CA / CS will walk you through your specifics.
Still have questions?
Book a free 20-minute consult with a senior partner - we'll walk through your case and outline next steps.
Talk to a partner →20-45 working days end-to-end, depending on AO workload. We follow up weekly and address queries within 24 hours to keep the file moving.
Ready when you are
Let's get your LDC (Form 13) sorted this week.
A senior CA / CS will get on a call with you, confirm scope and start the work - usually within 24 hours.