So, is Form 13 dead?
No. It has simply been renumbered as part of the wider overhaul that replaced the Income-tax Act, 1961 with the Income-tax Act, 2025. The application form and the section it sits under were given new numbers, but the certificate does exactly the same job it always did — it lets you have TDS deducted on your actual gain instead of the full sale value.
- Application: Form 13
- Provision: Section 197
- Purpose: Lower / Nil TDS Certificate
- Application: Form 128
- Provision: Section 395
- Purpose: same Lower / Nil TDS Certificate
What Form 128 (formerly Form 13) actually does
When an NRI sells property in India, the buyer is required to deduct TDS at source under Section 393(2) (formerly Section 195) — and by default that deduction is on the entire sale price, at the higher NRI rate. Form 128 is your application to the Assessing Officer for a certificate that lowers (or nils) that deduction, so tax is withheld on your real capital gain rather than the gross value. Filed and approved before the sale deed is registered, it can free up lakhs of rupees at the exact moment you sell.
- Buyer deducts TDS on the FULL sale price
- Higher NRI rate — up to ~30% on short-term gains
- Lakhs locked until you file your ITR and claim a refund
- TDS deducted on your actual gain only
- Rate matched to your real liability
- Cash freed at the moment of sale
What changed — and what didn't
The change is almost entirely cosmetic. Here is the honest split:
- Changed — the form number (Form 13 → Form 128).
- Changed — the section number (Section 197 → Section 395).
- Changed — the governing Act (1961 → 2025).
- Unchanged — the purpose: a Lower / Nil TDS Certificate.
- Unchanged — the process: applied for on TRACES and approved by the Assessing Officer.
- Unchanged — the timing: it must be in hand before the sale is registered.
Plenty of guides, bank pages and even sale agreements still say “Form 13” or “Section 197”. Treat them as referring to today's Form 128 / Section 395 — the substance is identical. Count each transaction against the rules in force for that year.
How to apply for Form 128
The route is the same one Form 13 always followed — only the labels on the form are new.
Start early — begin the application 6–8 weeks before registration. The certificate must be received before the sale deed is registered, or the buyer must deduct at the full default rate.
- Form 13 isn't dead — it's renamed to Form 128 under the Income-tax Act, 2025.
- The provision moved from Section 197 to Section 395; the buyer's deduction is under Section 393(2) (formerly Section 195).
- The certificate's job is unchanged: TDS on your gain, not the gross sale price.
- Old references to “Form 13 / Section 197” now mean Form 128 / Section 395.
- File 6–8 weeks ahead — it must be approved before the sale deed is registered.
Frequently asked questions
Is Form 13 still valid?
The concept is — it has just been renamed to Form 128 under the Income-tax Act, 2025. New applications use Form 128; certificates already issued as “Form 13” remain valid for their stated period.
Is Form 13 the same as Form 128?
Yes. Form 128 is the renamed Form 13 — the application for a Lower / Nil TDS Certificate. The form number and its section (now Section 395, formerly Section 197) changed; the purpose and process did not.
Which section is Form 128 filed under?
Section 395 of the Income-tax Act, 2025 — the successor to Section 197 of the old 1961 Act.
Do I need Form 128 if I'm an NRI selling property?
Almost always, if you want to protect cash flow. Without it, the buyer deducts TDS on the full sale price at the higher NRI rate. With it, tax is withheld on your gain — often freeing up lakhs at the moment of sale.
This article is for general information only and reflects rules current as of 2026. It is not legal, tax, or financial advice — form and section numbers, rates and procedures can change, so please confirm the current position with a qualified professional before acting.