24 November 2010
Is it neccessary to issue Tds certificate for Deductee, whose is eligible to deduct tds at nil rate as per lower deduction certificate obtained from Concern AO.
Please clarify my doubt and code notification/ circular if any.
25 November 2010
28.6.7 Certificate for tax deducted [Section 203] (1) Every person deducting tax at source shall issue a certificate to the effect that tax has been deducted and specify the amount so deducted, the rate at which tax has been deducted and such other particulars as may be prescribed. (2) Every person, being an employer, referred to in sub-section (1A) of section 192 shall, within such period, as may be prescribed, furnish to the person in respect of whose income such payment of tax has been made, a certificate to the effect that tax has been paid to the Central Government, and specify the amount so paid, the rate at which the tax has been paid and such other particulars as may be prescribed. (3) However, where tax has been deducted or paid in accordance with the foregoing provisions of this Chapter on or after 1.4.2010, there is no requirement to furnish a certificate for tax deducted under section 203 in respect of such tax deducted or paid on or after 1.4.2010.
25 November 2010
If NIL TDS then you need not have to issue TDS Certificate because you have not deducted any TDS. TDS certificate can be issued only in case you have deducted any amount of TDS and deposited to the credit of Central Government.
25 November 2010
There is no obligation to issue a NIL TDS certificates, where non deduction is governed by a certificate issued by the TDS authorities. You should however furnish a copy of the said certificate furnished by the deductee before your assessing Officer in proof of justification for non deduction of tax at source, which is otherwise exigible for TDS. This would saver you from avoidable disallowance under section 40(a)(ia).
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