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How to apply for lower deduction certificate online

Lower Deduction Certificate (LDC) is a certificate that exempts a person from a higher TDS (Tax Deducted at Source) deduction on certain specified incomes. It is particularly useful for individuals whose estimated tax liability for the year is lower than the TDS deducted by their employers. In this article, we will discuss the steps involved in applying for an LDC online in India.

Step 1: Visit the Official Website

To apply for an LDC online, you need to visit the official website of the Income Tax Department. The website can be accessed by typing the following URL into your web browser: https://www.incometaxindia.gov.in/Pages/default.aspx

Step 2: Navigate to the e-Filing Portal

Once you are on the Income Tax Department’s homepage, navigate to the e-Filing portal by clicking on the ‘e-Filing’ option on the top right corner of the screen.

Step 3: Login or Register

If you are a registered user, you can log in with your credentials. If you are a new user, you will need to register first by clicking on the ‘Register Yourself’ option and providing the required details.

Step 4: Go to ‘My Account’ and Select ‘Request for Lower Deduction Certificate’

After logging in, go to ‘My Account’ and select the ‘Request for Lower Deduction Certificate’ option.

Step 5: Fill in the Form

After selecting the ‘Request for Lower Deduction Certificate’ option, fill in the form with the required details such as name, PAN (Permanent Account Number), income details, and estimated tax liability.

Step 6: Upload Documents

After filling in the form, upload scanned copies of the following documents:

  1. Proof of identity (Aadhaar Card, Passport, Driving License, PAN Card, etc.)
  2. Proof of address (Utility bill, Passport, Driving License, etc.)
  3. Income Tax Returns filed for the previous year (if any)

Make sure that the size of each document is within the specified limits.

Step 7: Submit the Form

After uploading the documents, submit the form. On successful submission, you will receive an acknowledgement receipt with a reference number.

Step 8: Track the Status of Your Application

You can track the status of your application online using the reference number. Once the application is processed, you will receive a notification through SMS or email.

Step 9: Download the LDC

After the application is processed, you can download the LDC from the e-Filing portal. You can also request a physical copy of the certificate by mail.

Conclusion

Applying for a Lower Deduction Certificate (LDC) online is a simple and convenient process that can be completed in a few easy steps. By following the steps outlined in this article, applicants can easily apply for an LDC online and avoid the hassle of visiting the government office. Remember to provide accurate information in the application form and upload the required documents within the specified limits. With the convenience of online application, the process of obtaining an LDC has become much easier and hassle-free for taxpayers in India.