Hello, in this post we will discuss the steps for lower deduction certificate verification through TRACES portal.

Lower Deduction / No deduction certificate is provided by the Income Tax Assessing officer to the deductor in case of reduced or nil deduction of TDS on a particular PAN.

Before utilizing the certificate the deductor has to verify the below details through the TRACES website;

  • The period for which the certificate is given
  • Sections for with reduced rate is allowed
  • Total amount allotted
  • Reduced Rate of Tax

Deductor on verifying the details only has to go for TDS deduction at lower/nil rate.

Lower deduction certificate Verification in TRACES portal

In order to verify the details, go to TRACES website (tdscpc.gov.in/app/login) and login to TRACES Portal using your login credentials and TAN.

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On logging in to the portal, go to Validate Lower Deduction Certificate u/s 197 under Statements/Payments menu.

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Next, in this window, enter the PAN of deductee whose certificate has to be validated and then select the year for which the certificate is given.

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While clicking on GO, all the certificates given for the TAN from the particular PAN for the financial year will be displayed.

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Here, we can view the details of the certificate(s) which includes;

  • Certificate number
  • Financial Year of the certificate
  • PAN of the deductee
  • Name of the deductee as registered with ITD
  • Valid From & To Date
  • If cancelled, Date of Cancellation
  • Sections applicable for
  • Nature of Payment
  • Applicable reduced TDS rate
  • Certificate Limit (Amount)
  • Till date consumed Amount
  • Date of issue of Certificate

Deductor has to verify all the details and utilize the certificate only up to the given details limit. Once the certificate limit is fully consumed, TDS will be deducted at a normal rate.

In order to view the consumption details, you need to click on the Consumed Amount, so it will display all the related deduction entry where the certificate was utilized.

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Note: In case the certificate is utilized after the consumption limit is crossed, deductor will receive default notice for short deduction.

Related: Section 197 – Nil or Lower rate deduction of TDS

You can also see how this works in Saral TDS

This ends the post. Also, let us know your opinion by commenting below.