New Delhi, Aug. 10 -- The Income Tax Department is in the process of framing rules to implement a key provision from the Union Budget 2026-27 that will allow taxpayers to apply electronically for certificates authorising lower or nil deduction of tax at source (TDS), Minister of State for Finance Pankaj Chaudhary said.

Chaudhary informed Parliament on Monday that under Section 395(1) of the Income-tax Act, 2025, taxpayers can obtain certificates allowing deduction of tax deducted at source (TDS) at reduced or nil rates. He added that the Finance Act, 2026 has further simplified the process by introducing an electronic application system aimed at reducing compliance burdens, particularly for small taxpayers, PTI reported.

The detailed ru...