OverviewIn India, TDS is often deducted at flat rates — even when your actual tax liability is much lower. Businesses, professionals, and contractors can legally apply for a Lower Deduction Certificate (LDC) under Section 197 to reduce TDS or claim nil deduction on specific income streams. Start Bharat handles the full process — from eligibility check to form filing and department follow-up — ensuring that your cash isn’t unnecessarily blocked with the government.
Who Is This For?Start Bharat’s Lower TDS Certificate service is ideal for income earners who face high TDS despite low tax liability.
Professionals, Consultants & Contractors Facing 10% TDS
Individuals who provide services and have high TDS deductions that exceed their final tax dues.
Companies With High-Value Transactions on Interest, Rent or Commission
Firms receiving large rental income, interest, or brokerage subject to heavy monthly TDS.
Businesses With Exemption-Linked Income or Losses
Startups or exporters that operate under tax holiday schemes but still face TDS on vendor payments.
Entities With Marginal or Nil Tax Liability This Year
Companies running in loss, break-even mode, or carrying forward depreciation who don’t owe actual tax.
NRIs & Foreign Companies Receiving Indian Income
Non-residents who qualify for treaty benefit or nil tax but face standard 20–30% TDS at source.
Solutions OfferedStart Bharat’s service ensures you legally reduce or eliminate excess TDS deductions.
- Eligibility Assessment Based on Financials & Projections
- Preparation of Application in Form 13 (Online)
- Calculation of Tax Liability Under Section 197
- Preparation of Annexures & Justification Sheet
- Document Compilation & Upload in Digital Format
- Department Liaison & Follow-Up for Assessment
- Issue & Download of LDC With Validity Period
- Support for Sharing Certificate With Deductors
Benefits Getting an LDC improves your cash flow, reduces refund dependency, and prevents deduction mismatch.
Improves Monthly Cash Flow & Working Capital
Reduced TDS means more money stays in your hands every month instead of getting locked with the department.
Prevents Excess TDS That Takes Months to Refund
Instead of waiting for refund post ITR filing, you reduce the deduction in advance — saving time and interest loss.
Legally Reduces Tax Deducted at Source
The certificate is issued under Section 197 and is accepted across all TDS sections — it’s completely lawful.
Helps in Vendor Negotiations and Timely Payments
With LDC, you avoid billing confusion and make yourself a preferred party for finance teams and payers.
Minimizes Reconciliation Errors in 26AS/GSTR
Matching TDS deducted vs received becomes simpler, improving ITR accuracy and refund claims.
Essential for Loss-Making or Tax-Exempt Businesses
Avoids paying tax when you’re not liable due to loss carryforward or income under exemption schemes.
Step-by-Step ProcessStart Bharat ensures your LDC application is correct, complete, and approved in record time.
Submit Past ITR, Income Estimate & Deduction Details
We review your past tax filings, upcoming contracts, and expected TDS to assess the need for reduction.
File Form 13 With Annexures on TRACES
Our team compiles all forms, annexures, projections, and uploads them online under the correct TDS section.
Liaise With Department for Approval Process
We follow up with the Assessing Officer, respond to queries, and clarify tax calculations as needed.
Get LDC and Share With Clients or Deductors
Once approved, the certificate is downloaded and shared with relevant parties to apply the new deduction rate.
Frequently Asked Questions
We’ve amassed a large number of frequently asked questions (FAQs)
It’s an official certificate issued by the Income Tax Department under Section 197 to reduce or eliminate TDS on certain income streams.
Any individual or business expecting excess TDS deductions compared to actual tax liability — including NRIs, companies, and professionals.
Past ITRs, income projections, Form 26AS, TDS certificates, financial statements, and relevant contracts or invoices.
Generally 10–25 working days depending on documentation, officer queries, and submission timelines.
You can submit it to deductors (clients/vendors) who must then apply the reduced or nil TDS rate mentioned in the certificate.
No. It applies only to income types mentioned in your application — like interest, rent, commission, or professional fees.