A Lower Tax Deduction Certificate (LTDC) is a provision under the Indian Income Tax Act that allows Non-Resident Indians (NRIs) to apply for a lower tax deduction on the sale of property in India. Here’s a breakdown of the process and requirements:

Avoid Excess TDS: By default, buyers of property from NRIs must deduct Tax Deducted at Source (TDS) at the rate of 20% + surcharge and cess (on long-term capital gains) or 30% + surcharge and cess (on short-term capital gains) on the sale value, which can lead to higher deductions than the actual tax liability.

---

Ease of Cash Flow: Obtaining an LTDC allows TDS to be deducted only on the capital gains amount, not the total sale consideration.