Nil and lower tax withholding certificates govern eligible branches, specified unit income, and taxpayer-specific deduction or collection relief mechanisms.

Rules 209, 210 and 213 of the Income-tax Rules, 2026 govern nil deduction, lower deduction and lower collection of tax. Rule 209 enables eligible non-resident branches to seek a no-deduction certificate subject to tax-compliance, return-filing and receipt conditions. Rule 210 allows non-deduction on income from specified units where prescribed acquisition and foreign-exchange conditions are met. Rule 213 provides the certificate process for lower or nil deduction and lower collection, with assessment based on tax liability, compliance history, liabilities and available tax credits.

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