197 Certificate – Rationale & Brief Analysis

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What is 197 Certificate?

The section 197 of Income Tax Act, 1961 provides the facility of non-deduction or lower deduction of tax. The assessee whose TDS is to be deducted on certain receipts can make application before Assessing Officer to get this benefit. The deductee can apply for certificate for non-deduction or lower deduction of tax on his receipt in Form 13. The deductor needs to give this certificate details while filing TDS return and needs to validate before filing.
197 Certificate should be of 10 digit & numeric number. Only registered users of TRACES can download 197 Certificate from 2018-19 onwards.

What are the Steps for Downloading 197 Certificate?

The steps for Downloading 197 Certificate are given below:

1.  Log in to TRACES site as a Deductor.
2.  Click on Inbox under Communication Tab.
3.  Select Category of Communication: Certificate u/s 197,206C.
4.  Click on Go button. Communication detail will appear under Action Required option.
5.  Select the Row of Issuance of Certificate.
6.  Click on Download Certificate tab to download it.
7.  User can view Communication Category details after clicking on View Details tab.
8.  Now log in to TRACES site by entering User ID, Password ,TAN of Deductor and Captcha.
9.  Click on Download 197/206 Certificate available under Downloads tab.
10. Mention Financial Year, Deductee PAN or Request No. List of available certificate will appear.
11. Click on hyperlink Download/View Certificate to download and view Certificate.

Some Informations about Validation of 197/195(3) Certificate

  • The Deductor can validate 197/195(3) Certificate from 2007-08 onwards from TRACES.
  • If error message showing as No data is available for specified search criteria on TRACES site, reasons can be shown as Certificate is not issued for related PAN/TAN Number.

What are the Steps for Validating 197/195(3) Certificate?

The steps for Validating 197/195(3) Certificate are given below:

1.  Log in to TRACES site as Deductor
2.  Click on Validate Lower Deduction u/s 197 & 195(3) under Statements/Payments tab to            validate 197/195(3) Certificate.
3.  Fill required details such as PAN of Deductee and Financial Year.
4.  Details of 197 & 195(3) Certificate will appear.
5.  Consumption Details will be viewed by clicking on Amount Consumed in Particular row.

Source: TRACES

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