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Lower Deduction Certificate

Handle vendors with lower TDS certificates

Lower TDS Deduction

What is Lower Deduction?

Vendors can apply to tax department for:

  • Reduced TDS rate
  • NIL deduction
  • Based on their tax liability

Vendor Certificate

When vendor provides certificate:

  1. Go to vendor settings
  2. Add certificate details
  3. Enter certificate number
  4. Specify validity period
  5. Set reduced rate

System Behavior

For valid certificate:

  • Uses reduced rate
  • Tracks certificate validity
  • Alerts before expiry

Documentation

Keep vendor certificates:

  • For audit purposes
  • Linked to vendor profile
  • 8-year retention

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