Sometimes it might happen that the payee/ deductee asks you to deduct TDS at a lower rate of TDS or for no-deduction of TDS. In this case, it is the responsibility of the payer/ deductor to ask for a reason for such lower deduction and mention the same while filing an e-TDS Return. 

Following are the reasons for the lower deductions of TDS: 

  • Lower Deduction/ No Deduction on account of certificate u/s 197

  • No Deduction on account of Certificate u/s 197

  • In case of Transporter transaction and valid PAN is provided

  • Transaction where Tax not been deducted as amount paid to vendor/party has not exceeded the threshold limit

  • Software acquired u/s 194J

  • No Deduction on account of payment made u/s 197A (1F)

  • No Deductions up to Rs. 50,000 in respect of interest income from deposits held by Senior Citizen u/s 80TTB for section 194A

  • Software acquired u/s 195