Within a function body you should define your local variables with let, yet this code looks alot like you try to bend it into an imperative mindset (def tempvar = new Map; foreach k,v in m do tempvar[k.toLower] = v; return tempvar). Also note, that the docs of doseq explicitly state, that it returns nil.
The functional approach would be a map or reduce over the input returning the result directly. E.g. a simple approach to map (iterating the sequence of elements, destructure the key/value tuple, emit a modified tuple, turn them back into a map):
user=> (into {} (map (fn [[k v]] [(.toLowerCase k) v]) {"A" 1 "B" 2}))
{"a" 1, "b" 2}
For your use-case (modify all keys in a map) is already a nice core function: reduce-kv:
user=> (doc reduce-kv)
-------------------------
clojure.core/reduce-kv
([f init coll])
Reduces an associative collection. f should be a function of 3
arguments. Returns the result of applying f to init, the first key
and the first value in coll, then applying f to that result and the
2nd key and value, etc. If coll contains no entries, returns init
and f is not called. Note that reduce-kv is supported on vectors,
where the keys will be the ordinals.
user=> (reduce-kv (fn [m k v] (assoc m (.toLowerCase k) v)) {} {"A" 1 "B" 2})
{"a" 1, "b" 2}
definside of a function on Clojure.defshould only be used on the top level. Useletto define local variables instead.