CBDT provides clarification on issue of TDS certificates for lower/nil rates

F.No.275/25/2020 -IT(B)

Government of India, 
Ministry of Finance/
Department of Revenue
Central Board of Direct Taes

North Block. New Delhi 
9th April. 2020

Sub: Clarification on orders dated 31.03.2020 and 03.04.2020 issued under section 119 of the Income tax Act. 1961 (the Act) by CBDT vide F. No 275/25/2020-IT(B) regarding issuance of a certificate for lower rate/nil deduction/collection of TDS/TCS 195.197 and 206C 19) of the Income-tax Act. 1961-reg. 

Representations have been received seeking further clarifications on orders dated 31.03.2020 and 03..2020 issued under section 119 of the Act by CBDT vide F N. 275/25/2020-4T(B) regarding issuance of certificate for lower rate/nil deduction/collection of TDS/TCS u/s 195,197 and 206C (9) of the Act. The matter has been examined in the Board and following clarifications w.r.t. above are issued: 

i) Issue of validity period of lower/nil deduction/collection certificates of F.Y. 2019-20: 

For the purpose of Para 2 1a and 2 16) of the order dated 31.03.2020,the lower/nil deduction/collection certificates will be valid for the particular period for which these were issued for F.Y. 2019-20 and also for further period from 01.04.2020 to 30.06.2020 for F.Y. 20.21 subject to conditions as mentioned in the order dated 31.03.2020. For example. if a certificate was issued for a period from 01.10.2019 to 15.12.2019 the same shall be valid for F.Y. 2019-20 for the period from 01.10.19 to 15.12.2019. and for F.Y. 2020-21 the same shall be valid from 01..2020 to 30.2020 subject to conditions as mentioned in the order dated 31.03.2020. 

ii) Issue of threshold, transaction limit for lower/nil deduction/collection certificates of F.Y. 2019-20: 

For the purpose of Para 2 (a) and 2 16) of the order dated 31.03.2020. threshold/transaction limit mentioned in lower/nil deduction /collection certificate issued fix F.Y. 2019-20 will be taken fresh for period from 01.04.2020 to 30.06.2020 for F.Y. 202.21 and the amount of threshold limit will be the same as was assigned for these certificates for F.Y. 2019-20 subject to other conditions mentioned in the order dated 31.03.10.