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LOWER TAX DEDUCTION CERTIFICATE (INCOME TAX)

Starting @25999

ADVANTAGES & BENEFITS

Get your TDS deducted at NIL rates or Lower rates

With the lower tax deduction you can get the TDS deducted at NIL rates or at lower taxes.

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Improved Cash flow

When you TDS is deducted at NIL rate then your working capital will not stuck unnecessary in TDS. This will improve the cash flow of the company.

Free from the hassles of Income Tax refund

In India income tax refunds normally takes two to three years, but when you apply for lower tax deduction certificate you are free from the hassles of Income tax refunds.

DOCUMENTS REQUIRED

  • Detailed note on nature of business
  • Financial statement of last three financial years along with the computations of income and audit reports.
  • Provisional computation of income, P&L a/c and balance sheet of the year going on.
  • Projected computation of income, P&L a/c and balance sheet of the next year for which you will need the certificate.
  • TDS return acknowledgements for last three financial years and current year.
  • Advance tax payment Challan of last three years and current year
  • Please give party wise details of estimated income and tds for the year for which the certificate is required.
  • Undertaking with respect to demands pending against you in respect of direct taxes.
  • Indemnity Bond on Rs.500 Stamp paper   
  • Letter of Authority on Rs.500 Stamp paper
  • Copies of LTDC of last two years
  • Rent agreement copies
  • Income tax assessment orders for past 3 years

FAQs

The main objective of lower tax deduction certificate is to give relief to those assesses where TDS deduction is more than the proposed Income Tax liabilities.

Any person with the TAN number can apply for the lower tax deduction certificate. The main condition is your income tax liabilities should be lower than your proposed TDS deduction.

Once applied generally, it takes 20-30 working days for LTDC issuance by Income Tax Department.

Normally in following cases the application for lower tax deduction may be rejected.

  1. Large demands on Income Tax portal
  2. Large outstanding demand on Traces
  3. Company is not compliant on TDS provision
  4. Company has history of tax evasion

The Lower Tax deduction certificate, once issues, has validity till financial year ending. This means that this certificate need to be applied every year.

Yes LTDC can be amended during the financial year with the application to concerned officer.

We handle the entire process from document preparation till the issuance of final certificate from income tax department.

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