Important Update: Lower/Nil TDS Deduction Application Window for FY 2023-24 and FY 2024-25.

The TDS Reconciliation Analysis and Correction Enabling System (TRACES) offers the option for taxpayers in India to file for lower or nil deduction of TDS if their TDS deduction exceeds their tax liability under the Indian Income Tax Law. This can improve their cash flow position.

Here’s a summary of the key points:

1. For the current financial year (F.Y. 2023-24), the functionality to file an application in Form 15E for lower or nil deduction certificate under section 195(2) of the Income Tax Act 1961 is available until March 15, 2024.
2. For the upcoming financial year (F.Y. 2024-25), the functionality to file an application in Form 15E for lower or nil deduction certificate under section 195(2) of the Income Tax Act 1961 will be available from February 28, 2024 onwards.
3. Similarly, for the current financial year (F.Y. 2023-24), the functionality to file an application in Form 13 for lower or nil deduction certificate under section 197 of the Income Tax Act 1961 is available until March 15, 2024.
4. For the upcoming financial year (F.Y. 2024-25), the functionality to file an application in Form 13 for lower or nil deduction certificate under section 197 of the Income Tax Act 1961 will be available from February 28, 2024 onwards.

Source #TRACES Website