Rule 28AA - Certificate for deduction at lower rates or no deduction of tax from income other than dividends

Certificate for deduction at lower rates: Assessing Officer may authorise reduced or nil withholding based on estimated tax liability.

The Assessing Officer may issue a certificate for deduction at lower rates or no deduction where existing and estimated tax liability justifies it, after considering estimated tax for the relevant year, tax on recent years' income, existing liabilities under income and wealth tax law, and advance tax, TDS and TCS for the year; the certificate is valid for the specified period unless cancelled, is issued to the deductor with advice to the applicant (or to the applicant when deductor details exceed a threshold), and systems authorities must establish issuance procedures and security.