Child TDS Certificate: Stop ₹0 Cuts on Your Income

Under the new Income Tax Act 2025, a 'child certificate' lets individual payers get a lower or nil TDS deduction on specific income streams. Here's who needs one and how to get it before your next payment.

Here's what happened: The Income Tax Act 2025 introduces the concept of 'child certificates' — individual-payer-level sub-certificates issued under a master lower or nil TDS/TCS certificate.. A taxpayer with low or zero net tax liability can apply for this certificate to instruct specific payers — banks, tenants, clients — to deduct TDS at a reduced or nil rate.. This replaces the older process where a single certificate had to cover all payers, making the system more granular and reducing TDS mismatch disputes at the time of ITR filing..

What you should do: Log in to the income tax e-filing portal and check whether your estimated taxable income for FY 2025-26 justifies a lower TDS application — use the tax calculator under 'Services'.. Apply for the master lower/nil TDS certificate well before your next income payment date — banks process FD interest quarterly, so timing matters.. Once your master certificate is approved, generate a child certificate for each payer (your bank branch, employer, or tenant) and share it immediately so they update their TDS records..

Apply at least 30 days before the income payment date — TDS is deducted at source the moment the payment is processed, and certificates cannot be applied retroactively for that transaction.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.