It itself is a challenge to navigate through the land of tax obligations, especially for those whose tax deductions outweigh their actual liability. There is a section called 197 of the Income Tax Act, 1961, that has Lower Deduction Certificate under its helm. This lets businesses and NRIs, among other eligible applicants, avoid the occurrence of excessive tax deductions at the time of discharging their liabilities, thereby providing relaxation in cash flow and eventually reducing the necessity for return. My Startup Solution facilitates the acquisition of a Lower Deduction Certificate in Lucknow for you so you pay only what's actually required and retain the desired flexibility in finances.
A Lower Deduction Certificate is a document through which the Income Tax Act mandates tax deduction at source (TDS) upon various types of income. These include salary, rent, and payments to Non-Resident Indians, among others. But under certain circumstances, the rate as specified for TDS turns out to be higher than the actual liability of a taxpayer. The Lower Deduction Certificate enables the applicant to reduce or remove the applicable TDS on some incomes so that the fund amount is not unnecessarily blocked.
LDCs are needed for tax filers whose TDS deduction exceeds their taxable income or liability. Some common circumstances for which an LDC may benefit include:
Loss in the Companies: Companies which suffer with some current or carry forward loss can reduce the amount of TDS deducted on that particular income.
Income Not Exceeding Threshold Levels: Taxpayers earning amounts below the exemption threshold shall not have TDS deduction by obtaining an LDC.
NRIs Selling Property in India: A Non-Resident seller can get benefit of reduced TDS to be deducted from a property sale, wherein, that is only from the amount of capital gain that results and not the overall sales proceeds.
Non-Resident Companies: As there payments made by customers towards non-resident companies registered with the Indian country and based on section 195 for the same purpose; now, a firm has opportunity to reduce its deduction that would otherwise come via the TDS when that possesses an LDC
To apply for LDC, the eligible taxpayer has to submit application form 13 online; it requires various documents along with details such as:
PAN card and address of the applicant.
Tax Deduction Account Number TAN of all parties responsible to pay.
Income tax return and computation details of previous three financial years.
Anticipated income and finance statements of the current financial year.
My Startup Solution will ensure that your application process is smooth, helps you in filling and submitting Form 13 and resolving all other queries raised by the assessing officer. We offer end-to-end support so that your application gets processed without any delay and your certificate is issued as early as possible.
You will enjoy many benefits through LDC services provided by My Startup Solution:
Better Cash Flow: Avoided high TDS cuts and hence that amount can easily be used anywhere for all your business as well as your personal immediate requirements too
Simplifies Compliances because if there is no TDS deducted or lower rate applies one would be relieved from having to give the income tax return annual compliance becomes less complicated
Minimized Refund Hassles: You have not to suffer from the refund issue since in that case one has minor or no amount deducted with respect to TDS on their income earnings; nothing like the moment of your income tax returns refunds can happen.
My Startup Solution has a devoted team of experts in taxes that offer service to its clients who require their Lower Deduction Certificate in Lucknow. The main areas in which I am specialized include catering residents as well as non-residents, individuals as well as businesses and providing full value to all my customers with respect to the concern at hand. I tend to take care of the procedures starting from the beginning right up to filing them to make the whole experience as hassle-free for my client as possible.
Ready to get your Lower Deduction Certificate? Let us help you in My Startup Solution today in easy and accurate tax compliance with its complexities.
Call/WhatsApp: +91 7081220800, Mail: info@mystartupsolution.in.
A Lower Deduction Certificate (LDC) is issued by the Income Tax Department under Section 197, allowing eligible taxpayers to have tax deducted at a lower or NIL rate on specific income sources. This certificate is ideal for NRIs, businesses with carry-forward losses, or taxpayers whose TDS deduction would otherwise exceed their actual tax liability.
To apply, you need to submit Form 13 online, along with supporting documents such as your PAN, previous years’ tax returns, and projected financials. My Startup Solution assists clients in Lucknow by preparing and submitting Form 13 and handling any queries from the assessing officer to streamline the application process.
Key documents include your PAN card, Tax Deduction Account Number (TAN) of all payment parties, prior years’ tax returns, and financial statements. If you’re a business, you may also need to submit audit reports. Our team will guide you on the exact documentation needed based on your situation.
An LDC is generally valid for one financial year, from the issuance date until the year’s end unless revoked earlier by the assessing officer. You’ll need to reapply each year if you wish to continue benefiting from reduced TDS deductions.
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