Taxpayers file lower/NIL TDS applications with the income tax department, if a major amount of TDS (withheld by payer of income) is regularly refunded back after filing the income tax return by said taxpayer.
If the jurisdictional TDS officer of the payee issues a certificate of No Deduction or Lower Deduction of Tax, in response to the application filed before him, then the deductor/payer of Income should take into account such certificate and deduct tax at the rates mentioned therein.
To facilitate the applicants to get the certificates issued with effect from 1st April of the Financial Year, applicants can apply for lower/nil deduction certificate from 28th February of the immediately preceding Financial Year.
Therefore, applications for the certificates for F.Y .2023-24 shall be allowed to be filed from Today i.e. on or after 28.02.2023.