Certificate for lower deduction of tax u/s 197

Please help on this issue:

I am applying for certificate for no deduction of tax under section 197 with Income Tax Authorities and they are asking me for TAN of the deductor. But in my case, the individual deductor does not have TAN. So, is there any way out to obtain the certificate without TAN of the deductor?

Replies (3)

Dear Ankit,

Individuals are not liable to do the TDS.  Hence, you may remove the entries where you are showing the individuals and retain only those professional incomes where there is going to be TDS.  In case you have all your clints to be individuals, there will not be any TDS anyhow so no need to apply for the certificate for deduction at the lower rate.  

Please revert in case your question is not answered.

TAN is mandatory while applying for certificate u/s 197 as the TAN number is marked in the IT system and only upon flagging the payments details while filing the quarterly return by the deductor, IT dept will validate the TDS non-deduction claim.Only persons with TAN can deduct tax as without a TAN TDS deposit is not possible. Hence, I suggest you communicate with your clients not to deduct tax without obtaining a TAN.

Dear Akhil,

My assessee is non- resident and he has sold his property to resident individual. Since he is NRI he is liable to get his tax deducted at maximum rate as per provison of Sec.195. Now, here my client is investing in another property thereby claiming exemption u/s 54F. Hence my client is requesting for no deduction of Tax by claiming benefit  u/s. 197.Here, the A.O is mandatorily asking for Tan of deductor individual. Kindly, suggest me a way out for obtaining certificate without TAN of deductor.

Your reply is awaited    

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