TDS LOWER DEDUCTION
This query is : Resolved
05 May 2026
I have received a lower deduction certificate under Section 197 of Income Tax Act specifying a TDS rate of 0.31%. The total sale consideration is ₹90 lakhs.
I’m confused about how to apply this rate:
Should I deduct TDS at the flat rate of 0.31% as mentioned in the certificate, or
Do I need to add surcharge and cess separately over and above this rate?
Also, one person suggested a split approach:
₹1 lakh already paid (ADVANCE) to be taxed at 12.5% + surcharge + cess, and
The remaining ₹89 lakhs at 0.31% + surcharge + cess
However, my understanding is that the rate mentioned in the certificate should be applied directly, without adding anything extra, as per Section 197.
Can someone please clarify the correct method and help compute the exact TDS amount?
I’m confused about how to apply this rate:
Should I deduct TDS at the flat rate of 0.31% as mentioned in the certificate, or
Do I need to add surcharge and cess separately over and above this rate?
Also, one person suggested a split approach:
₹1 lakh already paid (ADVANCE) to be taxed at 12.5% + surcharge + cess, and
The remaining ₹89 lakhs at 0.31% + surcharge + cess
However, my understanding is that the rate mentioned in the certificate should be applied directly, without adding anything extra, as per Section 197.
Can someone please clarify the correct method and help compute the exact TDS amount?
05 May 2026
Deduction Rate: Apply the 0.31% rate exactly as stated in the certificate.
Surcharge/Cess: Do not add any extra charges; the certificate rate is final.
Total TDS: The total tax to be deducted is ₹27,900.
Surcharge/Cess: Do not add any extra charges; the certificate rate is final.
Total TDS: The total tax to be deducted is ₹27,900.
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