A Lower Deduction Certificate (LDC) is a document issued by the Income Tax Department in India to individuals who are not required to deduct Tax Deducted at Source (TDS) on certain types of payments.
A Lower Deduction Certificate (LDC) is a document issued by the Income Tax Department in India to individuals who are not required to deduct Tax Deducted at Source (TDS) on certain types of payments.
When is an LDC Required?
Payments to Non-Residents: If you are making payments to Non-Resident Indians (NRIs) or foreign nationals, you may need to obtain an LDC to avoid deducting TDS.
Payments to Individuals: In certain cases, you may need to obtain an LDC to avoid deducting TDS on payments made to individuals, such as freelancers or consultants.
Benefits of Obtaining an LDC:
Avoids Unnecessary TDS Deduction: Obtaining an LDC can help you avoid deducting TDS unnecessarily, which can save you time and money.
Ensures Compliance: Having an LDC ensures that you are complying with income tax laws and avoiding penalties.
Facilitates Transactions: An LDC can facilitate smooth transactions with non-residents or individuals.
How to Obtain an LDC:
Online Application: You can apply for an LDC online through the Income Tax Department’s portal.
Required Documents: You will need to provide certain documents, such as proof of identity, address, and details of the payments to be made.
Verification: The Income Tax Department will verify the information provided and process your application.
Issuance of LDC: If your application is approved, you will receive the LDC electronically or by post.
Validity of an LDC:
The validity of an LDC can vary depending on the circumstances. It may be valid for a specific period or for a particular transaction.
It’s important to note that the specific requirements and procedures for obtaining an LDC may change from time to time. It’s advisable to consult with a tax professional or accountant for the most accurate and up-to-date information.
Would you like to know more about the specific criteria for obtaining an LDC or the documents required for the application process?
Terms & Conditions
Govt fee Rs 1000 extra to be borne by the client
All tax payments and penalties if any to be borne by the client
Stamp paper and notary should be borne by the client
This pricing is applicable only if the LLP is not having any assets and liabilities.
There will be additional charges if there is BANK ACCOUNT STATEMENT transactions having above 100 entries
DINeKYC & DSC needs to be active till the e-filing status of the LLP changes to “UNDER PROCESS OF STRIKE OFF”.
Separate forms to be filed with MCA for updating of Registered Office address/mail id & and the add/remove partners (additional charges applicable).
LLPs must file FORM-3 within 30 days of incorporation. Failure to do so incurs a penalty, which must be paid before filing FORM-24 for closure of LLP with the MCA.
A Lower Deduction Certificate (LDC) is a document issued by the Income Tax Department in India to individuals who are not required to deduct Tax Deducted at Source (TDS) on certain types of payments.
When is an LDC Required?
Benefits of Obtaining an LDC:
How to Obtain an LDC:
Validity of an LDC:
The validity of an LDC can vary depending on the circumstances. It may be valid for a specific period or for a particular transaction.
It’s important to note that the specific requirements and procedures for obtaining an LDC may change from time to time. It’s advisable to consult with a tax professional or accountant for the most accurate and up-to-date information.
Would you like to know more about the specific criteria for obtaining an LDC or the documents required for the application process?