Lower or No TDS Certificate Related Consultancy

TDS is deducted on the income of an individual and submitted to the income tax department before the deadline. In some cases, a situation may arise when TDS is being deducted from the income of an individual but the total tax liability calculated at the end of the year is less than the TDS deducted. In such cases, it becomes very time consuming for the taxpayer. Firstly, he pays TDS, then it is submitted to the government and then again TDS refund is claimed by the taxpayer. Therefore, government introduced section 197 under the income tax act which clearly states that if the tax liability of any individual is less than the amount of TDS deducted, he may file an application for lower or no TDS deduction to the income tax officer to get certificate. As per section 197, once a certificate is granted, TDS will be deducted as per the TDS rate mentioned on the certificate.

You have to fill an application for no or less TDS deduction in form 13 of the income tax officer. If your application is justified and the tax officer is satisfied, he will issue a lower or no TDS deduction certificate for the same under section 197.

Lower or no TDS deduction certificate is applicable only if certificate has been issued by the income tax officer in response of the application filled by you in form 13. The certificate should be submitted to the person who is deducting the TDS. This certificate is required in all cases except where payment is made on interest on FD or interest on securities as per section 197. Form 15G or 15H is required to be submitted in case of payment made on interest on FD or securities.