How to Validate Certificate u/s 197?

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. 

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. 

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.

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

Generally, the certificate is issued to the payee and specific to one payer (based on nature and regularity of transactions) and accepts the payments throughout the validity upto the amount mentioned in the certificate.

If the payee misuses a certificate:

• The payer can still be treated as “assessee-in-default” if TDS is under-deducted.
• It is essential for the payer to confirm that the nature of payment aligns with what the certificate covers.

Yes. The application under Form 13 must be made each year to obtain a certificate for that financial year. Previous year's certificates do not carry forward automatically.