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The Central Board of Direct Taxes ('CBDT') on 31st March 2020 provided relief to many taxpayers vide the Notification bearing reference no. F.No. 275/25/2020- IT(B).

The Department taking a note of the ongoing crises due to the COVID-19 Pandemic stated that, the numerous applications filed for F.Y. 2020-21 under the following sections of the Income Tax Act,1961 ('Act') could not be attended by the Assessing Officers in a timely manner thus leading to hardship faced by the taxpayers -

  • 195 [Other Sums] & 197 [Certificate for Deduction at Lower Rate] respectively for lower or nil rate of deduction of TDS; and
  • 206C (9) [Profits and Gains from the Business of Trading in Alcoholic Liquor, forest produce, scrap etc.]

Therefore, while the offices across India are observing a Lockdown, the CBDT considering the current crisis situation has provided for the following 'Relief Extensions' to the concerned taxpayers:


For assesses who have already made applications for lower or nil deductions of TDS/TCS on the Traces Portal for F.Y. 2020-21, and are still pending at the Department, but the assesses have been issued certifications for the same F.Y. 2020-21:

Such issued certificates would automatically become applicable till 30th June 2020 of F.Y. 2020-21 OR disposal of their applications by the Assessing Officers, whichever is earlier.


CBDT Extension of validity of lower/nil TDS: A sigh of relief

For assesses who have been issued certificates, but could not apply for issue of lower or nil deduction of TDS/TCS on the Traces Portal for F.Y. 2020-21:

Such issued certificates will also become applicable till 30th June 2020 for F.Y. 2020-21.  

However, such assesses shall be required to furnish details of the transactions to the TDS/TCS Assessing Officer at the earliest as per the procedure established by law, as soon as the normalcy is restored or latest by 30th June 2020, whichever is earlier.


For assesses who have neither made an application on TRACES Portal, nor have received the certificate for F.Y. 2020-21:

They shall abide by the procedure for application as laid down in the Annexure to this 31st March 2020 Notification.


Procedure as laid down in the Annexure:

1. Application to be made under Section 197/206C (9) of the Act vide an email addressed to the concerned Assessing Officer.

2. The Email to provide the following details:

  • Duly Filled in Form 13 (Annexure I and/or Annexure III);
  • Documents/information as required to be uploaded on TDS-CPC website, while filling of Form 13;
  • Projected Balance Sheet and P&L account of FY 2020-21;
  • Provisional Balance Sheet and P&L account of FY 2019-20;
  • Form 26AS for FY 2019-20 & 2018-19;
  • ITR pertaining to FY 2018-19.


The Department taking a note of the hardship faced by taxpayers and business during the current time of Pandemic has provided a wave of relief.

This step shall be considered as a positive move by the Department in the interest of the taxpayers to avoid payments of any form of penalty or interest.


Published by

Arpit Suri
(Proprietor at Arpit Suri & Co. )
Category Income Tax   Report

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