New Delhi, Aug. 11 -- Are you a taxpayer expecting your final tax liability to be lower than the Tax Deducted at Source (TDS)? Then you may soon have an easier way to seek relief. The Income Tax Department is drafting new rules to allow applications for nil or lower TDS certificates to be filed electronically.

Minister of State for Finance Pankaj Chaudhary, in a written reply in the Lok Sabha on 10 August, said the move is aimed at easing compliance, bringing transparency, and will be particularly beneficial for small taxpayers.

Chaudhary wrote: "Section 395(1) of the Income-Tax Act, 2025 provides for issuance of certificate for deduction of tax at source at Nil or lower rates. Vide Finance Act, 2026, to ease the compliance burden of sm...