No TDS

TDS 450 views 4 replies

Aalhad Deshmukh

Associate Corporate Advisor

75 Points Joined February 2009

Respected all,

I had a small query.

One of our clients is a director in 2 different companies say Company A and Company B.

While deducting tax at source on the salary paid to him in A, his salary in B is also considered.

So now, he wants to apply to the company B to not to deduct tax at source on the salary paid to him in company B.

For no TDS or TDS at a lower rate, application in Form no. 13 is to be submitted.

My query is whether the assessee has to compulsarily submit Form 13 or a simple application made to the company will do.

If it is compulsary to file Form 13, then what is the procedure to do so?

Kindly guide me.

Thank you in advance.

Regards.

Replies (4)

Amir

Learner

4016 Points Joined December 2009

Dear Aalhad,

Assessee has to file Form 13 to his Assessing Officer, in return assessing officer will require the assessee to submit the proof of payment of tax by Company A or u can voluntarirly attached this thing with Form 13.

If AO is satisfied he will issuue a certificatefor Lower or no deduction of Tax..

Assessee can submit that certificate with Company B, based on which TDS will not be deducted or deducted at a lower rate.

CA Prashant Gupta

DGM (F & A)

14068 Points Joined July 2007

assessee will file Form 13 to AO. In this form he has to submit three year details of income and advance tax etc. If AO is satisfy then he will issue certificate u/s 197. Then he can submit it to comapny B for non-deduction of TDS.