11 June 2015
Certificate for lower or no deduction of tax U/s 197.
Assessing Officer can issue a certificate for lower or no deduction of tax: ->To the deductee, if is a resident or ->To the deductor, where the deductee is a non-resident If the Assessing Officer is satisfied that the total income of the deductee justifies deduction of tax at a lower or nil rate.
(1)The deductee may make an application, in such form and manner as may be prescribed, to the Assessing Officer seeking a certificate for deduction of income-tax at a lower rate or, as the case may be, no deduction of income-tax from payments to be received by him. (2)The deductor may make an application, in such form and manner as may be prescribed, to the Assessing Officer seeking a certificate for deduction of income-tax at a lower rate or, as the case may be, no deduction of income-tax from payments to be made by him to a non-resident deductee. (3) Where the Assessing Officer is satisfied that the total income of the deductee justifies deduction of income-tax at a lower rate or no deduction of income-tax, he shall give to the deductee or the deductor, as the case may be, such certificate as may be appropriate. (4) The deductor shall deduct income-tax at the rates specified in the certificate issued under sub-section (3), until— (i) such certificate is cancelled by the Assessing Officer ; or (ii) the expiry of the validity of the certificate, whichever is earlier. (5)The Board may prescribe the circumstances and the cases in which an application may be made for the grant of the certificate and the conditions subject to which such certificate may be granted and provide for all other matters connected therewith.
14 June 2015
Yes you need to first apply to TDS Department. Here is the procedure:
For applying lower TDS certificate to the TD department, following documents are required to be submitted :
In case of Company
1. Covering letter disclosing nature of business of the company, reason for company should get lower TDS certificate and also details of the party with their correct address & TAN.
2. New Form 13
3. Estimated financials & computation of Total Income
4. Audited financials for the last 3 Years
5. Tax Audit Report of the Last 3 Years
6. Income tax return acknowledgment of last 3 Years
7. E TDS return acknowledgment for last 2 years of all the 4 quarters.
8. In case of any short payment of TDS in last 3 years, proof of the payment of TDS.
9. Copy of application & certificate obtained for earlier years.
10. No Dues Certificate from Your Assessing officer in respect of Income tax ·
After submitting the aforesaid application to the TDS department , the AO will review your documents and they may ask further queries & documents to satisfy that your company is eligible for getting the lower TDS certificate.
And basic requirement for individual:
1. Name & PAN
2. Form 13
3. Details regarding purpose for which payment is being received.
4. Details of last 3 years income and current year's project income.
CAclubindia
