Lower TDS Certificates Online Soon: Your Guide

Great news for your finances! The Income Tax Department is rolling out new rules soon for you to apply online for lower or nil Tax Deducted at Source (TDS) certificates.

This change means you can avoid having too much tax deducted from your income upfront, especially if your total tax liability for the year is expected to be lower. It helps you keep more of your money throughout the year instead of waiting for a refund.

How Online Applications Will Work

Applying for these certificates will become much simpler and fully digital. Here’s how the new system will work for you:

• You’ll apply electronically through the income-tax portal.
• The system will use your existing data, like past tax returns.
• It will also leverage information from your Annual Information Statement (AIS) and Taxpayer Information Summary (TIS).
• Your Form 26AS data will also be part of the automated review.

This new online approach is designed to cut down on paperwork and remove the need for physical visits to tax offices. It promises a faster, more transparent, and completely paperless experience for you.

Key Numbers from the Income Tax Department

Here are some recent figures shared by Minister of State for Finance Pankaj Chaudhary, highlighting the department’s efficiency:

• A total of 2.24 lakh appeals were disposed of in FY26.
• The department completed 2.13 lakh faceless assessments in FY26.
• The government also raised ₹45,306.05 crore in FY26 through disinvestment and asset monetisation.

This initiative stems from a provision in the FY27 Budget and an amendment to the Finance Act, 2026. It specifically aims to streamline the process under Section 395(1) of the Income-tax Act, 2025.

Keeping an eye on these upcoming rules could significantly simplify how you manage your tax deductions, helping you align your TDS more closely with your actual tax liability.