Lower Deduction Certificate

A Lower Deduction Certificate is applied for using Form 13 under the Income Tax Act when the actual tax liability on a taxpayer’s income is lower than the TDS being deducted by the payer under the applicable tax provisions.

This application is made under Section 197 of the Income Tax Act and can be submitted by the recipient of income who seeks relief from excess TDS deductions.

Eligible Applicants for Lower TDS Deduction Include:

✔ Non-Resident Indians (NRIs)

✔ Residents but Not Ordinarily Residents (RNORs)

✔ Foreign Companies

✔ Individuals or entities receiving income from a foreign company

✔ Entities or individuals receiving income from a foreign collaborator, joint venture, or associate

Note: This is not an exhaustive list. Eligibility for a Lower Deduction Certificate under Section 197 depends on the nature of the income and the jurisdiction of the recipient.