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How to Validate Certificate u/s 197?

By CA Mohammed S Chokhawala

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Updated on: Mar 17th, 2025

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1 min read

Section 197 of the Income Tax Act, 1961 provides for the facility of NIL deduction of tax or deduction at a Lower rate of tax. To avail of this benefit, the assessee whose TDS is likely to be deducted on certain receipts should make an application before the TDS Assessing Officer who has a jurisdiction over his/ her/ its case. In short, the certificate under section 197 enables taxpayers to apply for a certificate that reduces or eliminates TDS on their income

The deductee concerned may apply for a certificate for Nil or lower deduction of TDS on their receipts in Form No 13. Once the certificate received by deductee (The person who receives payment after deducting TDS), he/she/it can submit to Deductor (The person who deducts TDS) to deduct the TDS at NIL rate or lower rate. Deductor has to give this certificate details while filing TDS return and has to validate before filing. 197 certificate should be of 10 digit alpha & numeric number. Ex. 1234AAAA45A1.

How to Validate the Certificate u/s 197

Step 1: Login to TRACES as a Deductor with register User ID and Password. The welcome page will be displayed.

Traces login page
Landing page of Traces

Step 2: Click on “Statements/Payments” the second tab and select “197 Certificate Validation”.

197 Certficate Validation

Step 3: Enter 10 digit certificate number, PAN of the deductee and select “Financial Year”.

10 digit certificate number

It will display all the details of Certificate. Number, Financial year, Valid period, TDS rate, Section code, Amount consumed etc.

Validation of 197 Certificate

That’s it! Now you can check the valid date, amount consumed whether the limit is crossed.

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Frequently Asked Questions

Who is eligible to apply under Section 197 of Income Tax Act?

Assessees whose anticipated annual income falls below the taxable threshold or whose calculated tax obligation, factoring in deductions and exemptions, is anticipated to be lower than the applicable Tax Deducted at Source (TDS) rate, are eligible for this provision. 

What is the validity for Certificate issued under Section 197?

A Section 197 certificate, granting reduced or zero Tax Deduction at Source (TDS), typically lapses within the fiscal year of its issuance. Validity extends from the date of issuance until March 31st, the conclusion of the Indian financial year. To continue availing of reduced or nil TDS deduction in the subsequent financial year, a fresh application and certification process are requisite. 

Can Non-Residents apply for certificate under section 197?

Yes. Non- Residents can also apply for Lower Tax Deduction Certificate under section 197, if they satisfy the conditions applicable. That is, their tax on their projected income should fall below the TDS rates.

Does the Assessing Officer have the power to cancel the certificate before the expiry of the period?

Yes. The Assessing Officer has the power to cancel the Lower Tax Deduction Certificate before the expiry of the certificate

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About the Author

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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