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A Lower Deduction Certificate in India is issued under Section 197 of the Income Tax Act, allowing taxpayers to deduct tax at a lower rate or nil rate. This helps businesses optimise cash flow and avoid excess tax deduction.
Our experts help businesses apply for LDC in India, ensuring proper documentation, accurate application, and faster approval from tax authorities.
Businesses making cross-border payments often apply for LDC to reduce TDS for non-residents in India.
You should apply for LDC under Section 197 if you receive income from India such as:
This includes:
Even if a DTAA allows 5% or 10% tax, Indian payers deduct 20%+ unless you provide an LDC.
Using DTAA + LDC advisory India, we help you:
We manage the entire Lower Deduction Certificate filing in India:
Govt departments are strict — applications often get delayed or rejected.
Despite DTAA lower rates, Indian payers still deduct at higher default rates.
Consultants lack expertise in presenting a strong case → benefit denied.
Lower TDS certificate filing in India often results in delayed cash flow.
No proper tracking of expiry due to which businesses lose eligibility in the next year.
The #1 Choice for Lower Deduction Certificate and International Taxation advisory in India.
We ensure your application is watertight, compliant, and AO-proof
We align your LDC with TRC, 10F, and DTAA documentation to optimize benefits.
We help structure your filings so renewals are smooth and timely.
5 tax-saving strategies that most founders overlook, all 100% legal.
Free audit to see if you’re eligible for tax treaty benefits and how to apply them.
Never miss a deadline with this easy-to-follow month-by-month checklist.
Check your residential status by your own
MAG helped us file the LDC smoothly and expedited the fund release from our property sale in India. The process was clear, hassle-free, and without delays.
We received our Lower Deduction Certificate in just 30 days. MAG made the process quick and simple.
We needed an LDC to avoid high TDS on a property deal. MAG handled the process swiftly and helped us release our funds much faster.
| Others | MAG |
|---|---|
| ❌ Only file Form 13 — no follow-up with AO | ✅ End-to-end handling: Form 13 + AO follow-up + PAN support |
| ❌ Submit minimal docs → leads to rejection | ✅ Complete documentation with TRC, DTAA, prior ITRs |
| ❌ Won’t reply to queries → clients stuck for months | ✅ Written replies to AO queries for stronger case presentation |
| ❌ Certificate issued but never explained how to use it | ✅ Guidance on using certificate with clients/banks for remittances |
| ❌ No renewal or expiry tracking → benefit lost next year | ✅ LDC application under Section 197 monitored for expiry & renewal |
Avoid Excess Tax Deduction With a Valid Lower Deduction Certificate (Section 197)
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Read MoreIt is a certificate issued by the Income Tax Department allowing lower or NIL TDS on payments to a non‑resident.
Foreign companies, NRIs, overseas shareholders, and even Indian payers who want to reduce TDS for non‑residents in India.
LDCs are commonly used for Royalties, technical services, consultancy, interest, dividends, property sales.
It ensures DTAA treaty rates are applied by Indian payers, avoiding excess deduction.
Yes. Banks require LDC or Form 15CB support for RBI remittance with reduced tax.
Usually 2–4 weeks, depending on AO and completeness.
The process can take 2–4 weeks, depending on the jurisdiction and completeness of the file. Early planning is advised before major remittances to avoid delays.
Yes. LDCs are generally valid for one financial year or for a specific transaction period. We help track renewal deadlines and file the next year’s application proactively.
Without a valid LDC, deducting TDS at a reduced rate may be treated as non-compliance, attracting Disallowance of the expense, Penalties and interest and Scrutiny during assessment.
We ensure the rate you apply is fully backed by documentation.
Yes. We take care of
-Preparing and submitting your application
-Responding to any queries from the assessing officer
-Coordinating with the payer, if needed
-Delivering your LDC with usage instructions
-You’ll have a single point of contact, and we keep everything audit-ready.
Our experts will connect with you shortly to answer your questions and guide you with the right solution.
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