Lower Deduction Certificate For Financial Year 2026-27

Friday, March 20, 2026

📝 A Lower Deduction Certificate (LDC) under Section 197 of the Income-tax Act, 1961 allows taxpayers to apply for deduction of tax at a nil or reduced rate, thereby helping avoid excess TDS and improving overall cash flow.

📝 This is particularly beneficial in cases where the actual tax liability is lower than the TDS or where there is no taxable income.

📝 The application process for obtaining the LDC for Financial Year 2026-27 is now available on the Traces Portal.

For detailed guidance on eligibility, and the documentation, please refer to the attached document.

👉 Get expert insights and stay tax-compliant.

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