Lower or No Tax certificate under Income tax- Procedure

• September 13, 2020
• CA Chandan Agarwal's Office

The concept of TDS under Income tax act is a common procedure and the object of TDS to collect tax from the very source of income. As per TDS concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. This same credit can be adjusted with the tax payable by the deductee on their Income tax return.

TDS is the procedural aspect by the Government to collect the taxes. However the TDS deduction is based on some specific percentage as prescribed in the relevant section subject to some specified conditions, So TDS deduction some time leads excess tax deduction for the deductee when compare to the actual income tax payable by them.  When the deducted tax is excess when compare to the actual tax payable by the deductee, this will create the two impacts i.e

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