Income Tax Department Plans Online Route For Lower TDS: What Taxpayers Need To Know

Taxpaye s
who
fi d
that
the
tax
deducted
f om
thei
i come
is
likely
to
be
highe
tha
thei
actual
tax
liability
may
soo
have
a
easie
way
to
seek
elief.
The
I come
Tax
Depa tme t
is
p epa i g
ules
that
will
allow
eligible
taxpaye s
to
apply
elect o ically
fo
ce tificates
pe mitti g
tax
deductio
at
sou ce
(TDS)
at
a
lowe
ate
o
at
il
ate.

The
p oposed
system
is
pa t
of
a
2026-27
Budget
p ovisio
aimed
at
easi g
complia ce
fo
small
taxpaye s.
The
developme t
was
co fi med
by
Mi iste
of
State
fo
Fi a ce
Pa kaj
Chaudha y
i
a
w itte
eply
i
the
Lok
Sabha
o
Mo day.

The
ules
a e
cu e tly
bei g
p epa ed
a d
will
be
otified
i
due
cou se,
Chaudha y
said,
epo ted
PTI.

Why
A
Lowe
O
Nil
TDS
Ce tificate
Matte s

TDS
is
ge e ally
deducted
whe
ce tai
types
of
i come
a e
paid.
Howeve ,
the e
ca
be
situatio s
whe e
the
amou t
deducted
is
highe
tha
the
taxpaye ‘s
eve tual
tax
liability.

I
such
cases,
a
taxpaye
ca
seek
a
lowe
o
il
TDS
ce tificate
so
that
excessive
tax
is
ot
deducted
i
the
fi st
place.
This
ca
also
educe
the
eed
to
wait
fo
a
efu d
afte
fili g
the
i come
tax
etu .

U de
the
ew
p ovisio ,
taxpaye s
will
be
able
to
submit
thei
applicatio s
elect o ically
i stead
of
elyi g
o
a
physical
p ocess.

The
move
is
aimed
at
maki g
the
p ocess
easie
fo
taxpaye s
whose
actual
tax
liability
is
expected
to
be
lowe
tha
the
amou t
that
would
othe wise
be
deducted.

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What
The
New
O li e
P ocess
Could
Look
Like

The
p oposed
elect o ic
system
will
ely
o
i fo matio
that
is
al eady
available
with
the
I come
Tax
Depa tme t.

Applicatio s
fo
lowe
o
il
TDS
ce tificates
a e
expected
to
be
p ocessed
usi g
data
available
o
the
i come-tax
po tal,
i cludi g
p eviously
filed
i come
tax
etu s,
the
A ual
I fo matio
Stateme t
(AIS),
Taxpaye
I fo matio
Summa y
(TIS)
a d
Fo m
26AS.

If
the
taxpaye
meets
the
p esc ibed
co ditio s,
the
ce tificate
will
be
issued
elect o ically.
Applicatio s
whe e
disc epa cies
a e
ide tified
may
be
ejected.

The
exact
co ditio s
a d
p ocedu e,
howeve ,
will
be
set
out
i
the
ules
that
a e
cu e tly
bei g
p epa ed
by
the
depa tme t.

What
The
Gove me t
Has
Cha ged

Chaudha y
said
Sectio
395(1)
of
the
I come-tax
Act,
2025
p ovides
fo
ce tificates
allowi g
TDS
to
be
deducted
at
il
o
lowe
ates.

The
Fi a ce
Act,
2026
has
i t oduced
the
elect o ic
applicatio
optio
as
pa t
of
effo ts
to
educe
the
complia ce
bu de
o
small
taxpaye s.
U de
the
p ovisio ,
a
payee
ca
elect o ically
apply
to
the
tax
autho ity
fo
a
ce tificate
pe mitti g
lowe
o
il
deductio
of
i come
tax.

The
ce tificate
ca
subseque tly
be
issued
o
the
applicatio
ejected,
subject
to
co ditio s
that
will
be
p esc ibed
th ough
the
ules.

The
p oposed
f amewo k
is
expected
to
emove
the
eed
fo
physical
docume tatio
a d
epeated
visits
to
tax
offices,
while
maki g
the
p ocess
pape less
a d
mo e
t a spa e t.

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I come
Tax
Depa tme t
Steps
Up
Faceless
P ocessi g

The
Fi a ce
Mi ist y’s
espo se
also
p ovided
a
update
o
the
depa tme t’s
wide
use
of
faceless
tax
admi ist atio .

Acco di g
to
Chaudha y,
the
I come
Tax
Depa tme t
disposed
of
2.24
lakh
appeals
du i g
2025-26,
compa ed
with
1.11
lakh
appeals
i
2023-24.

At
the
same
time,
the
depa tme t
completed
2.13
lakh
faceless
assessme ts
i
FY26,
compa ed
with
2.73
lakh
i
FY24.

The
mi iste
was
espo di g
to
a
questio
i
the
Lok
Sabha
ega di g
the
umbe
of
faceless
assessme ts
co ducted
a d
appeals
disposed
of
by
the
I come
Tax
Depa tme t
ove
the
last
th ee
yea s.

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