CBDT amends TDS Return Form 27Q; Introduces Note 7A for lower or No TDS details

The Central Board of Direct Taxes (CBDT) has amended the TDS Return Form 27Q and introduced Note 7A for lower or No TDS details by issuing a Notification.

Form 27Q is a TDS return or Statement containing details of Tax Deducted at Source (TDS) deducted on the payments other than the salary that is made to Non-resident Indians and foreigners.

Form 27Q TDS is required to be submitted quarterly on or before the due date. Form 27Q contains information on payments made to the NRI as well as the TDS deducted by the deductor on those payments.

Key Highlights of Changes

New Note 7A – Form No. 27Q has been significantly updated, particularly in the Annexure under the heading “Verification”. The amendment adds a new Note, designated as Note 7A.

The notification issued under sub-section (1F) of section 197A of the Income-tax Act, 1961 requires taxpayers to write “P” if they are qualified for a lesser or no deduction.

The Notification read as follows:

In exercise of the powers conferred by section 295 read with sub-section (3) of section 200 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:––

1. (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2024.

(2) They shall come into force on the 1st day of July, 2024.

2. In the Income-tax Rules, 1962, in Form No. 27Q, in the Annexure, under the heading “Verification”, in the Notes, after Note No. 7, the following Note shall be inserted, namely:––

‘7A. Write “P” if lower deduction or no deduction is in view of notification issued under sub-section (1F) of section 197A.’.

For Official Notification Download PDF Given Below: