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Exemption from TDS deduction: Who can apply, process


Tax is deducted at source to ensure that when a person receives income, the tax authorities receive tax in advance. The person who pays the assessee should deposit the TDS to the tax authorities. However, the tax payer/assessee may not have any taxable income and this TDS deduction may cause hardship to the taxpayer. Here’s how to mitigate it.

Form

Application for TDS exemption/concession can be made in Form 13 and filed with the assessing officer applicable to the assessee. Tax offices in certain locations also provide the option to file the application in an online format.

Supporting documents

The following documents need to be provided along with the signed Form 13:

  • IT return copies with acknowledgement for the last three financial years.
  • Income computation for the same period as well as the current year.
  • Assessment orders for the last three financial years.
  • Audit report for the same.
  • E-TDS return acknowledgement for the last three financial years.
  • Estimated income and projected profit and loss account for the current financial year.
  • Copy of PAN
  • TAN of the parties who are going to pay the assessee.

Process

Once the application is submitted, the same will be processed within 30 days of the end of the month in which the application is submitted.

Who can apply

This application can be made by any person, corporate, HUF, individual, etc. An individual may also submit a self declaration in Form 15G or Form 15H for non-deduction of TDS.

Points to note

  • If the taxpayer does not want to follow the above process, they can claim refund of the TDS while fi ling tax return.
  • It is advisable to consult your tax adviser for best approach.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.



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