Obtaining Lower Deduction Certificate

Section 197 of Income Tax Act provides that if a taxpayer considers that his Total Income requires deduction of income tax at a lower/ nil rate, he may apply to the assessing officer (AO) requesting for lower withholding certificate in Form 13.

The AO if satisfied that existing and estimated tax liability of an applicant justifies the deduction of tax at a lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.

Certificate of Lower Deduction can be obtained if TDS is deductible under sections 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA, 194LBB, 194LBC 50[, 194M] and 195.

The CBDT, vide notification no. 8/2018 dated 31st December 2018, has provided the procedure for electronic filing of FORM 13 online and generation of the certificate through TRACES.

The certificate shall be valid for such period of the previous year as may be specified in the certificate.

Our Team will assist in Obtaining a Lower Deduction certificate for both Residents as well as Non-Residents.