11 January 2017
Hi, I work as consultant; my TDS is flat 10%(section 194), but i also fall in physically disabled category, i have all necessary certificate to avail return under section 80u. but i want my employer to not to deduct my TDS ( as i am exempted) rather than i file a return to claim Is it possible that way or is there any certificate provided by IT dept for NIL tax deduction which i can submit to my employer ?
12 January 2017
As per section 197, Where a taxpayer believes that its total income justifies withholding of tax at a lower rate, it can apply to the assessing officer for a certificate of TDS at a lower rate. If the AO is satisfied that the existing and the estimated tax liability of a person justifies TDS at a lower rate, or at nil rate, the AO will issue a certificate. Once such a certificate is granted under section 197, TDS will be deducted at such lower rate.