TRACES is the online portal for filing TDS Returns, correction of TDS Returns and downloading TDS documents. Section 197 of the Income Tax Act provides the benefit to deduct tax at nil rate or lower rate. Below is the process for issue of certificate u/s 197 for deduction of TDS at lower or nil rate.
- Deductee applies for the certificate by filing Form 13 with the Assessing Officer
- The Assessing Officer approves the application
- Deductee submits the certificate to the deductor
- Deductor submits the certificate details and validates the certificate before filing TDS Return
- Deductor can download the certificate from his account on TRACES – from the inbox or from the downloads
Process to download TDS Certificate under section 197 – Deductor’s Download
- Log in to TRACES
- Navigate to Download 197/206 Certificate
Go to Downloads > Download 197/206 Certificate
- Enter Financial Year, Deductee PAN or Request Number
Enter Financial Year, Deductee PAN or Request Number. A list of the available certificate will appear on the screen
- Download the certificate
Click on the hyperlink ‘Download / View Certificate‘ to download the certificate
Process to download TDS Certificate under section 197 – Deductor’s Inbox
Step 2: Go to Communications > Inbox
Step 3: Select the Category of Communication ‘Certificate u/s 197/206C‘. Click on ‘Go’. Click on a row to select and proceed
Step 4: The details of TDS Return and details of certificate will appear on the screen under the option ‘Action Required’
Step 5: Select the row ‘Issuance of Certificate‘, then click on ‘View Details‘ button to view communication details or click on ‘Download Certificate‘ to download the certificate
As per the Income Tax Act, there is no specified deadline to submit application u/s197. However, it is advisable to make an application at the beginning of the financial year so that the TDS Return is filed with correct calculations.
An application for Nil/ Lower deduction of TDS is required to be filed in Form 13 to the Income Tax Officer, and the tax officer on being satisfied that lower deduction of TDS is justified shall issue a certificate for the same under Section 197.
It is the certificate given by the deductee to the deductor for the reduction of TDS on the payment to be done. This certificate is obtained by the deductee from the Income Tax Assessing officer on providing relevant information on income.