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Glossary / Also known as

Section 197 certificate

Another name for Lower Deduction Certificate.

Other names
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What does section 197 certificate mean?

Section 197 certificate is another name for Lower Deduction Certificate. A lower deduction certificate under Section 197 authorises deductors to deduct TDS at a rate lower than the prescribed rate or at nil, based on the deductee's estimated tax liability.

The two names mean the same thing. You will see "section 197 certificate" in some ledgers, reports and contracts and "Lower Deduction Certificate" in others. The full entry covers how it works, with examples.

Read the full definition of Lower Deduction Certificate

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From the glossary

Related terms.

TDS rates and sections Lower Deduction Certificate A lower deduction certificate under Section 197 authorises deductors to deduct TDS at a rate lower than the prescribed rate or at nil, based on the deductee's estimated tax liability. Also called lower TDS certificate, Form 128, Form 13 certificate TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source TDS rates and sections Section 194C / 194H / 194J Key Income Tax Act sections prescribing TDS rates for contractor payments, commission or brokerage, and professional or technical fees. Also called section 194C, section 194H, section 194J TDS TAN (Tax Deduction Account Number) A unique 10-digit alphanumeric number required by all persons responsible for deducting or collecting tax at source. Also called TAN number, deductor account number Vendor onboarding PAN (Permanent Account Number) A unique 10-character alphanumeric identifier issued by the Income Tax Department of India to every taxpayer. Also called PAN card, PAN number Due dates and calendars Financial Year (FY) The 12-month accounting period from April 1 to March 31 used for tax filings, financial reporting, and statutory compliance in India. Also called accounting year, tax year
From the blog

Related posts.

TDS Section 393 of Income Tax Act 2025: TDS Rates and Old-to-New Section Mapping Section 393 of the Income Tax Act 2025 is the single TDS section for non-salary payments from 1 April 2026, replacing 193, 194 to 194T and 195. OneFinOps Editorial 4 min TDS What is TDS? Meaning, Rates and How It Works TDS (tax deducted at source) is income tax the payer deducts from a payment such as salary, fees, rent or interest and deposits with the government. OneFinOps Editorial 3 min TDS Section 194Q: TDS on Purchase of Goods Under the New Act Section 194Q is now 393(1) Sl. No. 8(ii), code 1031: a buyer with turnover above ₹10 crore deducts 0.1% on purchases above ₹50 lakh from a seller. OneFinOps Editorial 2 min
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