LDC facilitates the payment of certain sum on deduction of TDS at a lower rate. It ultimately saves the assessee from the repercussions of the higher TDS deduction which cause an imbalance in the working capital requirement of the assessee.

Where a taxpayer believes that its total income justifies withholding of tax at a lower rate, it can apply to the assessing officer for a certificate of withholding tax at a lower rate.

In order to verify the details, go to TRACES website (tdscpc.gov.in/app/login) and login to TRACES Portal using your login credentials and TAN. On logging in to the portal, go to Validate Lower Deduction Certificate u/s 197 under Statements/Payments menu.