Lower Tax Deductions Certificate

Hi All,


I want to apply for Lower Tax Deduction Certificate for my company. The company is two years old and falling in Professional service rendering category attracting 10% TDS rate. Please suggest the procedure and eligibility to apply for it.

regards,

Sandeep Parekh

Replies (2)

The company will have in apply in form no. 13 with your ITO for appplication for lower deduction of TDS. The said form is available in the files section.

You will have to provide your earlier years return acknowledgement copy with the same and fill full details as mentioned in the form. Rest details as needed by the ITO to issue the certificate will be called by the ITO after filing of the form.

Here is the relevant section for the same

Certificate for deduction at lower rate.

197. 71(1) 72[Subject to rules made under sub-section (2A), 73[where, in the case of any income of any person 74[or sum payable to any person], income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 75[194,] 194A, 76[194C,] 194D, 76[194G] 77[, 194H] 78[, 194-I] 79[, 194J] 80[, 194K] 81[***] 82[, 194LA] and 195, the Assessing Officer is satisfied] that the total income 83[***] of the recipient justifies the deduction of income-tax 84[***] at any lower rates or no deduction of income-tax 84[***], as the case may be, the 85[Assessing] Officer shall, on an application made by the assessee in this behalf, give to him such certificate as may be appropriate.

(2) Where any such certificate is given, the person responsible for paying the income shall, until such certificate is cancelled by the 85[Assessing] Officer, deduct income-tax 86[***] at the rates specified in such certificate or deduct no tax, as the case may be.

87[(2A) The Board may, having regard to the convenience of assessees and the interests of revenue, by notification in the Official Gazette, make rules specifying the cases in which, and the circumstances under which, an application may be made for the grant of a certificate under sub-section (1) and the conditions subject to which such certificate may be granted and providing for all other matters connected therewith.]

And the specified rule

Application for certificates for deduction of tax at lower rates.

28.   (1) An application by a person 86[* * *] for a certificate under sub-section (1) of section 197 shall be made in Form No. 13.

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