Now Reading: Child certificates under Income Tax Act 2025 from April 2026
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Child certificates under Income Tax Act 2025 from April 2026
From 1 April 2026, taxpayers can use Form 128 to obtain lower or nil tax deduction certificates. These certificates allow payers to deduct tax at a reduced rate instead of the standard…
The Story in Brief
From 1 April 2026, taxpayers can use Form 128 to obtain lower or nil tax deduction certificates. These certificates allow payers to deduct tax at a reduced rate instead of the standard TDS or TCS rate.
Livemint reports that when a taxpayer gets such approval from the Assessing Officer, they can generate separate 'child certificates' on the TRACES portal for each person or company making payments to them. This is useful when the taxpayer does not know all payer details at the time of applying. The payer then quotes the child certificate number in the TDS statement. Despite the name, a child certificate has nothing to do with minors, it is simply a sub-certificate for individual payers.
The Indian Opinion
The tax department has rebranded a straightforward compliance tool with a confusing name. Some might spin this as yet another bureaucratic layer, but the child certificate actually simplifies communication between taxpayers and multiple payers. The real test will be whether the TRACES portal can generate these certificates without glitches and whether taxpayers bother to use a facility that remains optional. If adoption is low, the process risks becoming just another formality no one remembers to file.
Source: livemint.com
This story was synthesised by AI from the source linked above.
