CBDT notifies procedure for obtaining NIL/Lower TDS Certificate

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CBDT notifies procedure for obtaining NIL/Lower TDS Certificate

Notification No. 8/2018 dated 31st December 2018 containing Complete Procedure for online filing of Form No.13 [i.e. Filing of Application for obtaining NIL/Lower TDS Deduction Certificate u/s 197 through TRACES Profile of the Assessee], it’s  processing and procedures to be adopted by Assessing Officers for considering and granting the Order/Certificate for NIL/Lower TDS Deduction has been released by government. It is given below for Reference:

CBDT notifies procedure for obtaining NIL/Lower TDS Certificate

Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems)
New Delhi

Notification No. 08/2018

New Delhi, 31st December, 2018

Subject: – Procedure, format and standards for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under sub-section (1) of Section 197 / collection of the tax at any lower rate under sub­ section (9) of Section 206C of the Income-tax Act, 1961 through TRACES- reg.

1. As per sub-section (1) of section 197 of the Income-tax Act, 1961, where, in the case of any income of any person or sum payable to any person, income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-1, 194J, 194K, 194LA [, 194LBB, 194LBC] and 195, if the Assessing Officer is satisfied that the total income of the recipient justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, the Assessing Officer shall, on an application made by the assessee in this behalf, give to him such certificate as may be appropriate. Further as per sub-section (9) of section 206C of the Income-tax Act, 1961, where the Assessing Officer is satisfied that the total income of the buyer or licensee or lessee justifies the collection of the tax at any lower rate than the relevant rate specified in sub-section (1) or sub-section {lC), the Assessing Officer shall, on an application made by the buyer or licensee or lessee in this behalf, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in sub-section (1) or sub-section
(lC).

2. Vide Central Board of Direct Taxes Notification No. 74/2018 dated 25.10.2018, Rule 28 / 37G of the Income-tax Rules, 1962 has been amended to provide for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under sub-section (1) of Section 197 / collection of the tax at any lower rate under sub-section (9) of Section 206C of the Income-tax Act, 1961 to be made in Form No. 13 electronically in accordance to the procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents to be laid down by the Principal Director General of Income-tax (Systems).

3. In exercise of the powers delegated by the Central Board of Direct Taxes, under sub-rule (2) of Rule 28 / sub-rule (2) of Rule 37G of the Income-tax Rules, 1962, the Principal Director General of Income-tax {Systems) hereby specifies the procedure, format and standards for the purpose of electronic filing of Form No. 13 and generation of certificate under sub-section (1) of section 197 / sub-section (9) of section 206C through TRACES, as per procedure in the succeeding paragraphs.

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