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TDS Certificates for nil/low TDS rates: Clarification by CBDT

Dinesh Singh 
on 13 April 2020

LinkedIn


Recently, CBDT has clarified that there is Nil or Lower TDS/TCS certificate issued for a particular period in FY 2019-20 also valid till June 30, 2020.

The CBDT has been receiving several representations from various stakeholders seeking further clarifications on order dated 31.03.2020. Thus for better understanding and clarification, CBDT has introduced the clarification regarding issuance of certificate for lower rate / Nil deduction / collection of TDS/TCS.

1) Issue of validity period of lower / nil deduction / collection certificates for FY 2019-20

TDS Certificates for nil/low TDS rates valid till 30.06.2020
  1. Assessees have filed application for the certificate for FY 2020-21 and applications are pending with the department, in that case Certificates issued for FY 2019-20 would be applicable till 30.06.2020.
  1. If assessees have not filed application for FY 2020-21. In that case also Certificates issued for FY 2019-20 would be applicable till 30.06.2020. However, they need to apply before 30.06.2020 by giving details of the transactions.

2) Issue of threshold / transaction limit for lower / nil deduction / collection certificates for FY 2019-20

The limit will be taken fresh for period from 01.04.2020 to 30.06.2020 for FY 2020-21 and the amount of threshold limit will be the same as was appearing in certificate for FY 2019-20

3) Issue of New / different TAN mentioned for lower/nil deduction/collection application for FY 2020-21 or revision of rates mentioned in certificates of FY 2019-20

 

If assessees

 
  1. Do not have such certificate for FY 2019-20 and not applied on TRACES Portal for the same till date
  2. had a certificate for lower deduction for FY 2019-20  and an application has been made for FY 2020-21 for a new or different TAN mentioned in application and
  3. The TDS rates in old certificate are higher and the assessee wants revision of the rates

then a modified procedure for fresh application laid down by CBDT is given in annexure of the directions issued.

DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION. IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.


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Category Income Tax
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