Lower Deduction Certificate (Section 197)
Definition
A certificate the Indian tax authority issues allowing a payee's income to suffer TDS at a lower rate or nil, where their estimated tax liability justifies it. The deductor applies the certificate rate for the period it covers.
Related Terms in India GST
TDS on Salary
Tax deducted each month by an employer from an employee's salary in India under Section 192, based on projected annual income, declared investments and the chosen tax regime, so that the year's liability is spread across pay periods.
Equalisation Levy
A levy India applies to certain payments to non-resident digital service providers — historically on online advertising and, in a later form, on e-commerce supply. Its scope has changed over time and should be checked against the current law.
Section 80G
A deduction for donations to specified funds and charitable institutions in India, available at either 50% or 100% of the donation depending on the recipient, sometimes subject to a qualifying-amount limit.
Form 10E
A form filed to claim relief under Section 89 of India's income-tax law when salary is received in arrears or in advance, spreading the tax effect so the taxpayer is not pushed into a higher bracket by the lump sum.
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