Section 197: Lower / Nil TDS Certificate (How to Reduce Excess TDS)

Many taxpayers suffer huge cash-flow issues due to excess TDS.
Section 197 allows eligible taxpayers to apply for a Lower or Nil TDS Certificate.

This WonderTax guide explains:

• Who can apply

• How to apply online

• Common mistakes

• Practical examples

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Who Can Apply Under Section 197?

• Residents & NRIs

• Professionals & businesses

• Landlords

• Property sellers

• Freelancers

👉 Applicable for Sections 194A, 194I, 194J, 194C, 195, etc.

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When Should You Apply?

• Before income is received

• Certificate is prospective, not retrospective

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Step-by-Step Application Process

1. Login to Income Tax Portal

2. Apply under “Lower Deduction Certificate”

3. Upload:

   • Past ITRs

   • Estimated income

   • Computation

4. Respond to AO queries

5. Certificate issued electronically

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Example: Rental Income

• Rent received: ₹15 lakh

• Actual tax liability: ₹50,000

👉 Normal TDS @10% = ₹1.5 lakh
👉 Section 197 certificate reduces TDS to 3% or NIL

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Common Reasons for Rejection

• Non-filing of past ITRs

• Outstanding tax demands

• Unrealistic projections

• Incomplete documentation

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Internal Links (WonderTax)

• Lower TDS & Advisory Services
  https://wondertax.in/tds-return-filing

• Income Tax Filing Services
  https://wondertax.in/income-tax-filing

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CTA – WonderTax

👉 Facing excess TDS every year?

🔗 https://wondertax.in