CBDT : Order u/s 119 of The Income Tax Act, 1961 on issue of certificates for lower rate/nil deduction/collection of TDS or TCS u/s 195, 197 & 206C (9)
F.No. 275/25/2020-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi
31, March, 2020
Subject: Order u/s 119 of The Income Tax Act, 1961 on issue of certificates for lower rate/nil deduction/collection of TDS or TCS u/s 195, 197 and 206C (9) -reg
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Due to outbreak of the pandemic Covid-19 virus, there is severe disruption in the normal working of almost all sectors, including functioning of the Income-tax Department. In such a scenario, the applications filed by the payecs u/s 195 and 197 of the Act for lower or nil rate of deduction of TDS and applications by buyers/ licensees/ lessees u/s 206C (9) of the Act for lower or nil rate of collection of TCS for F.Y. 2020-21, have not been attended in a timely manner by the TDS/TCS-Assessing Officers, causing hardship to tax payers.
2. Considering the constraints of the Field Officers in disposing of the applications for lower or nil rate of TDS/TCS and to mitigate hardships of payees and buyers/ licensees/ lessees, the CBDT issues following directions/clarifications by exercise of its powers u/s 119 of the Act:
a) All the assessees who have filed application for lower or nil deduction of TDS/TCS on the Traces Portal for F Y.2020-21 and whose applications are pending for disposal as on date and they have been issued such certificates for FY 2019-20, then such certificates would be applicable till 30.06.2020 of F.Y. 2020-21 or disposal of their applications by the Assessing Officers, whichever is earlier, in respect of the transaction and the deductor or collector if any for whom the certificate was issued for F.Y. 2019-20.
b) In cases where the assessees could not apply for issue of lower or nil deduction of TDS/TCS in the Traces Portal for the FY 2020-21. but were having the certificates for F.Y. 2019-20, such certificate will be applicable till 30.06.2020 of F.Y. 2020-21. However, they need to apply at the earliest giving details of the transactions and the Deductor/Collector to the TDS/TCS Assessing Officer as per procedure laid down in sub-para c) below, as soon as normalcy is restored or 30.06.2020, whichever is earlier.
c) In cases where the assessee has not applied for issue of lower or nil deduction of TDS/TCS in the Traces Portal, and he is also not having any such certificate for F.Y.2019-20, a modified procedure for application and consequent handling by the TDS/TCS Assessing Officer is laid down which is enclosed as Annexure.
d) On payments to Non-residents (including foreign companies) having Permanent Establishment in India and not covered by (a) and (b) above, tax on payments made will be deducted at the rate of 10% including surcharge and cess, on such payments till 30.06.2020 of F.Y. 2020-21, or disposal of their applications, whichever is earlier.
(Mahesh Kumar)
Director (IT-Budget), CBDT
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