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Lower TCS cerificate

04 December 2018

Do anyone have idea how regarding how to validate Lower TCS certificate on traces site by deductee.The case is . That Income tax office has given us manual certificate, but we are getting continuous compliant from deductors that they are not able to see the same on traces site ??

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160688 Points)
Replied 04 December 2018

click on the link for tutorial ....Validate-197-&-195(3)-Certificate

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160688 Points)
Replied 04 December 2018

Advisory for Deductors

1. Deductors deduct tax at lower rate on payment/credit to deductee on production of certificate duly issued by assessing officers under section 197. Deductors quote such certificate number in quarterly TDS statement. Instances of huge default of ‘Short Deduction’ have been observed due to wrong quoting of 197 certificate number. The scenario of wrong 197 certificate generally arises when the deductor accepts from deductee a manually issued lower deduction certificate by assessing officer & quotes the same in TDS statements.

2. CPC(TDS) has provided the facility of validating the 197 certificate to the deductors on www.t. (TRACES). This enables a deductor to first validate the 197 certificates given to him by their deductees and then furnish the same in the TDS/TCS statement.

3. If the 197 certificate is not valid as per TRACES validation, the deductor should always insist upon an ITD system generated certificate having a unique 10 digit alpha numeric number. This would minimize the generation of default of “Short Deduction due to 197 certificate”.

Also refer: 1. validate-certificate-us-197