Tracking LDC Limits When AO Issues Certificates to deductor- blanket LDC

[Ramanathan Seshan]

Dear Experts,

Some Assessing Officers (AOs) are issuing Lower Deduction Certificates (LDCs) addressed to 'all persons responsible for deducting tax' without mentioning of our TAN. In such cases, how can we track the LDC limit effectively? Also, how can we monitor whether the vendor has exceeded the specified LDC limit?

Regards,

S Ram

AI Summary

Navigating Lower Deduction Certificate Compliance: Strategic Tracking and Validation of Tax Deduction Account Number Limits A discussion forum explores tracking Lower Deduction Certificate (LDC) limits when Assessing Officers issue generic certificates without specific Tax Deduction Account Number (TAN). Experts recommend obtaining vendor declarations, maintaining reconciliation registers, using TRACES portal for validation, and including protective agreement clauses to effectively monitor certificate limits and prevent potential tax compliance risks.