Process to Verify Lower Deduction Certificate Number

TDS || Process to Verify Lower Deduction Certificate Number


The Section 197 Certificate, commonly referred to as the Lower Deduction Certificate (LDC), is a provision under the Income Tax Act that allows taxpayers to avail a Nil or reduced TDS rate on their income. This guide outlines the step-by-step process to verify the LDC Number in the TDS software.

Steps to Validate the Lower Deduction Certificate Number

Step 1: Open the TDS Software and Select the Deductor
  1. Launch the TDS Software.
  2. Navigate to the Deductor Master List and select the relevant company/deductor for which the TDS return is being prepared.
  3. Choose the appropriate Assessment Year and Quarter.
Step 2: Start Filing
  1. Navigate to Deductee Transaction.
  2. Select the relevant TDS Form:
    1. Form 24Q (Salary)
    2. Form 26Q (Non-salary)
    3. Form 27Q (Non-Resident)
    4. Form 27EQ (Tax Collected at Source)
      

Step 3: Deductee Entry
  1. Click on the ADD button.
      
  1. Enter the required Deductee details.
  2. Save the Deductee entry.
Step 4: Add the Lower Deduction Certificate Details
  1. Enter the Certificate Number and TDS Rate.
  2. Ensure the details entered exactly match those provided in the certificate issued on the TRACES portal.
Step 5: Verify the Lower Deduction Certificate
  1. Click on the Verify option next to the Lower Deduction Cert No.
      
  1. The system will automatically redirect to the TRACES Portal.
  2. Enter the Captcha and proceed with verification.
  3. The status will be displayed as:
    1. ✅ Valid – No further action is needed.
    2. ❌ Invalid – Re-check the details and re-verify.
      

By following these steps, you can ensure accurate verification of the Lower Deduction Certificate Number, avoiding discrepancies in TDS filings.