When our NRI client approached us for help with a Lower Deduction Certificate (LDC) to sell property in India, we were clear-eyed about the process: it’s technical, slow, and unfortunately, not very predictable.
Still, we filed the application in good faith, with full documentation and full transparency. What followed was 44 days of back-and-forth queries, tight response windows, departmental silence—and finally, a breakthrough.
Despite the frustrating delay, we managed to save ₹4,00,000 in TDS for our client. Here’s exactly what happened.
🗓️ The Real Timeline: From Filing to Approval
| Date | Event / Query Raised | Remarks |
|---|---|---|
| 26-Apr-2025 | Application Filed with all required documents | LDC Application Submitted |
| 06-May-2025 | Query 1: Circle Rate & Buyer’s TAN requested | Reply due by 12-May-2025 |
| 09-May-2025 | Reply to Query 1 Submitted | Submitted 3 days before deadline |
| 12-May-2025 | Query 2: PAN copy of Seller requested | Reply due by 16-May-2025 |
| 12-May-2025 | Reply to Query 2 Submitted | Submitted same day |
| 27-May-2025 | Follow-up Email to Department | Request for timely approval |
| 30-May-2025 | Query 3: Department doubted current Collector Rate; requested updated rate | Reply due by 03-Jun-2025 |
| 31-May-2025 | Reply to Query 3 Submitted | Submitted within 1 day |
| 05-Jun-2025 | Second Follow-up Email to Department | Reminder sent for LDC approval |
| 10-Jun-2025 | LDC Approved | Total time taken: 44 days |
😠 The Pain Points: What’s Broken in the System
1. Fragmented Queries Waste Time
Three separate queries across three weeks—each could’ve been asked up front.
2. Short Timelines for Us, No Deadline for Them
We got 2–5 days per query. Officers took 10+ days to raise each new one. There’s no balance here.
3. Zero Urgency from the Department
Two follow-up emails were needed just to get the certificate moving again.
4. Real Risk to the Property Transaction
Delays could’ve derailed the deal—buyers don’t wait forever.
5. No Legal Time Limit to Issue LDC
Here’s the worst part: the Income Tax Act doesn’t prescribe any deadline for the department to issue the certificate. So technically, they could delay indefinitely. This lack of accountability must be fixed.
💰 But Here’s the Win: ₹4,00,000 Saved for Our Client
Despite all the hurdles, our client didn’t give up—and neither did we.
By staying responsive, preparing airtight documents, and pushing the department at key points, we secured the LDC—and avoided excess TDS deduction.
Had the client sold the property without the LDC, they would’ve lost ₹4 lakhs to over-deduction and long refund wait times.
🧩 What Needs to Change
- Unified Query Format: Ask all questions once.
- Reasonable Response Time for Taxpayers: At least 5 working days.
- Defined SLA for Officers: A legal 30-day window to process Form 13.
- Checklist Integration in Portal: Make PAN, collector rate, and buyer TAN mandatory on upload.
- Accountability System: Officers must track query timelines and avoid stalling.
👨💼 You Deserve Better. We Can Help.
If you’re an NRI looking to sell property in India—or a professional advising one—don’t leave your deal to chance. The LDC process is full of blind spots, but with the right support, you can win.
📞 Call CharteredHelp at +91 92666 85656
✔️ Expert documentation
✔️ Anticipated queries
✔️ Aggressive follow-up
✔️ Real savings
CharteredHelp is a team of experienced professionals providing tax, accounting, auditing, and compliance services for businesses and individuals. With over 10+ years of experience, we assist clients with GST registration and filings, income tax returns, company registration, trademark services, accounting, auditing, and handling tax notices. Our focus is on providing practical, reliable, and timely support to help clients stay compliant and grow their businesses with confidence.
