—Guide
Lower TDS Certificates for Telangana Businesses: Contractors, Landlords and IT Firms
Where lower TDS certificates help most in Telangana: contractors on government and private projects, landlords, NRI property sellers and IT services firms.
Lower or nil deduction certificates are available to anyone whose TDS exceeds their likely tax, but in Telangana they're especially useful for a few groups: contractors, landlords, NRI property sellers and IT services firms. This guide looks at each.
Note: this article describes the rules under the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026 (tax year 2026-27), with renumbered provisions, so check the current position for later periods.
Contractors on Government and Private Projects
Contractors working on state government, municipal and private construction projects in Telangana have TDS deducted from every bill. With material costs making up a large share of billing, TDS on the gross amount can far exceed tax on profit, locking up working capital for months. A certificate for a lower rate — naming the main departments and clients — can significantly improve cash flow.
Landlords
Owners of commercial property in Hyderabad receive rent with TDS deducted. Where rental income is offset by loan interest, or the landlord has low other income, a lower deduction certificate can reduce TDS to match actual tax.
NRI Property Sellers
Many Hyderabad properties are owned by NRIs. When they sell, the buyer must withhold tax at rates applicable to non-residents, often on the full sale price rather than the gain. A certificate from the Assessing Officer determining the appropriate amount of tax on the actual gain can reduce withholding significantly — but it needs to be obtained before the sale is completed.
IT Services Firms
Hyderabad's large IT services sector includes many firms working on thin margins for domestic clients who deduct TDS on professional or technical fees. For firms with losses or low margins, a certificate can prevent a build-up of refunds.
What Applicants Need
- A realistic projection of income and tax.
- A list of payers with TANs and expected amounts.
- Past returns and assessment history.
- For NRIs, the sale agreement and cost details.
A Checklist
- Compare expected TDS with expected tax early in the year.
- Apply in April or before the first large payment.
- For NRI sales, apply before the sale deed is registered.
- Share the certificate with every named payer.
- Reapply each year.
Getting Help
Think Filing applies for lower TDS certificates for Telangana contractors, landlords, NRIs and IT firms.