New Delhi, Aug. 10 -- The Income Tax Department is preparing rules to operationalise a new facility that will allow taxpayers to apply online for certificates seeking deduction of tax at source (TDS) at lower or nil rates, Parliament was informed on Monday.
In a written reply, Minister of State for Finance Pankaj Chaudhary said the provision is aimed at reducing the compliance burden, particularly for smaller taxpayers, by moving the application process to an electronic platform.
Under Section 395(1) of the Income-tax Act, 2025, tax authorities can issue certificates permitting TDS to be deducted at a lower rate or not deducted at all, subject to specified conditions.
The Finance Act, 2026 has introduced an electronic route for taxpayers...