Step-by-step process to verify lower deduction certificate

Lower Deduction Certificate Verification Procedures Using TRACES

Hello, in this post we will discuss the steps for lower deduction certificate verification through the 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 utilising 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 a lower/nil rate.

Lower deduction Certificate Verification in the TRACES portal

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

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

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.

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

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, the 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 limit of the given detail. Once the certificate limit is fully consumed. Then,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.