Detailed Explanation
How it works
The payee applies in Form 13; the Assessing Officer issues a certificate specifying the rate, amount and deductors, which the deductor then applies.
Frequently asked questions
What is a lower deduction certificate?
An AO order under Section 197 allowing TDS at a reduced or nil rate, obtained via Form 13.
Who should apply?
Payees whose normal TDS would exceed their actual tax, such as loss-makers or refund cases.
This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.