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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 197
Under the Income Tax Act, 1961, Section 197 governs 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.
The new code maps this to Section 230: the provision is retained and renumbered as Section 230 of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Application (Form 13) and issuance are now 100% digital and faceless.
On the ground, changes to Section 197 carry a High impact. Crucial for businesses with low profit margins to save cash flow.
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 of the Income Tax Act, 1961 covers 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.
Where does Section 197 of the ITA 1961 go under the Income-tax Act, 2025?
Section 197 of the Income Tax Act, 1961 maps to Section 230 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Application (Form 13) and issuance are now 100% digital and faceless.
Why does the change to Section 197 matter for taxpayers?
The transition impact for Section 197 is rated High. Crucial for businesses with low profit margins to save cash flow.
What are the key changes to Section 197 under the Income-tax Act, 2025?
Certificate validity is now tracked via a unique QR code on the TDS portal. These points are specific to Section 197 (Certificate for lower deduction of tax).
Disclaimer: This mapping of Section 197 (Certificate for lower deduction of tax) to Section 230 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 197 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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