Sec 197 of Income Tax Act,1961

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  1. Ameya Ravindra Vaze

    Ameya Ravindra Vaze New Member

    Dear Sir,

    I happened to know a CA firm which has been issued the lower deduction certificate u/s 197 by the department.But I am still unclear on the basis on which such certificate was issued.The primary reason for issue of such certificate as mentioned by department is that the assessee need not worry about refund in case his/her income doesn't exceed specified limit. Such reason in this case seems improper.
  2. ZED

    ZED Well-Known Member

    Certificate u/s 197 is issued by AO if he is satisfied that there would be no tax payable or the tax payable would be less than the TDS rate.
    For claiming this certificate the applicant has to give details of the income of his past 3 years.
    If tax is deducted at higher rate and hence the AMOUNT of tax deducted is more than the amount of tax payable, then assessee would be required to claim the refund. But if certificate u/s 197 is granted, then applicant do not need to worry about refund, since tax deducted would be low.

    If the certificate is valid, then you do not need to worry about it. Just validate the PAN and ensure that the certificate is active.
    Ameya Ravindra Vaze likes this.
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