Taxes taking a bite out of your salary? Use Section 197 to manage cash flow

Only payments made after submission of this certificate are eligible for lower or nil tax rate

When it comes to money, it pays to be tactical, and doubly so during a crisis. Even the smallest of steps can help. Take, for instance, utilising Section 197 of the Income-Tax (I-T) Act to prevent deduction of excess tax. Tax deducted at source (TDS) is collected by the deductor and is remitted into the government’s account. The deductee, from whose income TDS has been deducted, is entitled to credit for the amount deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

According to Rahul Garg, senior partner, tax & regulatory, PwC India, “TDS rates