Section 197 → Section 230
Certificate for lower deduction of tax
Quick Answer
Section 197 of the Income Tax Act, 1961 (Certificate for lower deduction of tax) corresponds to Section 230 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 197
Provision Summary
Allows a taxpayer to apply to the AO for a certificate to have TDS deducted at a lower or NIL rate.
Sec 230
Provision Summary
Retained. Application (Form 13) and issuance are now 100% digital and faceless.
Key Changes & Highlights
- Certificate validity is now tracked via a unique QR code on the TDS portal.
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Frequently Asked Questions
What does Section 197 of the Income Tax Act 1961 deal with?
Section 197 (Certificate for lower deduction of tax) Allows a taxpayer to apply to the AO for a certificate to have TDS deducted at a lower or NIL rate.
What is the new section number for Section 197 under the Direct Tax Code 2025?
Section 197 of the ITA 1961 maps to Section 230 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 197 under the new tax code?
Section 197 is marked as "Retained" with status "Active". Impact: High - Crucial for businesses with low profit margins to save cash flow.
What are the key changes to Section 197 under DTC 2025?
Certificate validity is now tracked via a unique QR code on the TDS portal.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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