02 December 2013
It is a rate,which is permitted or issued by the Commissioner of Incometax which is lower than the orginal or generally applicable rates of TDS, based on the reasons for lower deductions,which will be applicable based on certain rules & regulations.
02 December 2013
LOwer deduction of TDS is the Certificate issued to applicant or deductee underwhich the deductee is allowed a special rate at which TDS will be deucted on payments due to him, the rate is normally lower than the regulatory TDS rate or NIl sometime. For eg Mr. ABC rendering professional services applies to IT dept for issue of NIL or Lower TAx deduction certificate. THE dept issues him the certificate underwhich all payments to him upto a certain limit say Rs. 1000000/- TDS deduction will be 1% instead of 10%. A person XYZ availing service from Mr ABC pays him professional fees of RS. 50000/- after deducting TDS @ 1% instaed of 10%. THe deductee is supposed to produce or give the copy of TDS certificate to all his clients or debtor.
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