Free Tool • Form 128 (earlier Form 13)
Lower TDS CertificateDocument Checklist
Applying for a Form 128 Lower/Nil TDS Certificate on your property sale? Check off exactly what you need, see the real process, and don't lose weeks to missing paperwork.
Document Checklist
Form 128 (earlier Form 13) — Lower/Nil TDS Certificate for property sale
Identity & NRI Status
Property Being Sold
Capital Gains & Tax History
Buyer's Details
Bank & Repatriation
Timing matters more than paperwork here. File Form 128 as soon as a buyer is finalised — well before the sale deed is registered. Processing typically takes 4 to 8 weeks, and the certificate is buyer-specific: if the buyer changes, you need a fresh application.
How the Application Actually Goes
Finalise the buyer and draft agreement
Apply only once you have a buyer and an agreed sale price — the application needs these details. This should happen well before the sale deed is registered.
Prepare the capital gains computation
Cost of acquisition, cost of improvement, transfer expenses and any exemption you plan to claim — this determines the lower rate you are asking for.
File Form 128 on TRACES
Submit the application online with all supporting documents, and e-verify using DSC, EVC or Aadhaar OTP.
Respond to the Assessing Officer's queries
The AO may ask for clarification or additional documents — timely replies keep the application from stalling.
Receive the certificate and share it with the buyer
Once approved, download the certificate and give it to the buyer before they make payment — it fixes the rate at which they deduct TDS.
Not sure it's worth applying?
Form 128 is worth the effort when the gap between standard TDS and your real tax is large. Check your numbers first — see exactly how much TDS would otherwise be blocked.
Open the Property TDS CalculatorDisclaimer: This checklist covers documents commonly required for a Form 128 (Lower/Nil TDS Certificate) application for an NRI property sale, based on current published guidance. The Assessing Officer may ask for additional documents specific to your case, and approval of a lower rate is at their discretion — this tool does not guarantee approval or predict the rate that will be granted.
Why NRIs bother with this paperwork
When an NRI sells property in India, the buyer must deduct TDS on the full sale value — not the profit — under Section 393(2) of the Income-tax Act, 2025. For most sellers this locks up far more money than their actual tax liability, and it sits with the government until a refund is processed after filing a return, often months later.
Form 128 (the renumbered Form 13, under Section 395(1)) is the fix. The seller applies to the Jurisdictional Assessing Officer with a computation of the actual expected tax, and if approved, the buyer deducts TDS at that lower rate — or nil — instead of the standard rate on the gross sale amount.
The catch is timing and paperwork. The application has to be filed and ideally approved before the sale deed is registered, and incomplete documentation is the single biggest reason applications drag on. That is what this checklist is for.
Where we help
- • Preparing the capital gains computation the application relies on
- • Filing Form 128 on TRACES and handling Assessing Officer queries
- • Coordinating with the buyer's side so registration isn't delayed
- • Filing the eventual Indian tax return once the sale completes
- • Form 145/146 (earlier 15CA/15CB) support for repatriating the sale proceeds abroad
Frequently Asked Questions
What is Form 128, and is it the same as the old Form 13?
Yes. Form 128 is the renumbered version of Form 13 under the Income-tax Act, 2025 (the underlying provision moved from Section 197 to Section 395(1)), effective from 1 April 2026. It is the application an NRI seller files to get a certificate authorising the buyer to deduct TDS at a lower rate — or nil — instead of the standard rate on the full sale value.
Who applies for Form 128 — the buyer or the seller?
The NRI seller applies. The certificate, once issued, is handed to the buyer, who then deducts TDS at the rate specified in the certificate instead of the standard rate that would otherwise apply on the full sale consideration.
How long does it take to get the certificate?
Typically 4 to 8 weeks from a complete application, though it can be faster or slower depending on the Assessing Officer's workload and how quickly you respond to any queries. Because of this, apply as soon as a buyer is finalised — well before the sale deed is scheduled for registration.
Is the certificate valid for any buyer, or a specific one?
It is buyer-specific. If the buyer named in your application changes before the sale completes, you need to file a fresh Form 128 application for the new buyer.
How long is the certificate valid once issued?
From its date of issue until 31 March of that financial year. If your sale is likely to spill into the next financial year, factor that into your timeline.
Do I need a PAN to apply?
Yes, PAN is mandatory for a Form 128 application. If you do not have one, you need to apply for and receive a PAN before you can file the application — build this into your timeline if you are starting from scratch.
Is it always worth applying for a lower TDS certificate?
It is worth it when the gap between standard TDS (deducted on the full sale value) and your actual tax liability (on the capital gain) is significant — which is most NRI property sales. Use our NRI Property TDS Calculator first to see the size of that gap before deciding whether the paperwork is worth it.
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