A Lower Deduction Certificate (LDC) is a legal document issued by tax authorities to eligible individuals or entities, allowing them to pay tax at a reduced rate or even avoid higher rates of tax deduction at source (TDS). This certificate is particularly useful for taxpayers whose actual tax liability is lower than the standard rate of TDS prescribed under tax laws.A Lower Deduction Certificate is a valuable tool for taxpayers to align their tax deductions with actual liabilities, ensuring smoother financial operations and compliance with tax laws. By understanding the eligibility, benefits, and application process, taxpayers can effectively leverage this certificate to enhance cash flow and reduce administrative burdens associated with excess TDS.