Exception from online filing of application under section 197 and 206C (9) in the cases of NRIs and resident applicants

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes


New Delhi, 24th December, 2018

PRESS RELEASE

Exception from online filing of application under section 197 and 206C (9) in the cases of NRIs and resident applicants

The Central Board of Direct Taxes has decided to allow exception from online filing of application under section 197 and 206C (9) in the cases of NRIs and resident applicants.

Vide Notification No. 74/2018 dated 25.10.2018, Rule 28 of the Income Tax Rules, 1962 was amended to prescribe electronic filing of application for lower deduction or no deduction under section 197 of Income Tax Act, 1961 using digital signature or EVC. Similar changes were also made in Rule 37G to prescribe electronic filing of application under section 206C (9) for lower or nil rate of tax collection at source (TCS). The functionality for online filing has since been made available by CPC-TDS through TRACES portal. Form No. 13 is the common form for application under section 197 and 206C (9).

For proper administration of the provisions of section 197 and 206C (9) and to remove genuine hardship being faced by certain applicants in filing online application in Form No. 13, the Central Board of Direct Taxes by virtue of the powers conferred under section 119(1) of the Income Tax Act has:

  • allowed non-resident Indians (NRIs), who are not able to register themselves on TRACES, to file manual application in Form No. 13 before the TDS officer or in ASK Centers till 31.03.2019.
  • (ii) allowed resident applicants to file manual application in Form No. 13 before the TDS officer or in ASK Centers till 31.12.2018.

(Y. D. Sharma)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

Source: Income Tax

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Kerala High Court stays collection of GST on TCS (Income Tax) in the matter of PSN Automobiles Private Limited Vs. UOI & CBIC (Kerala High Court at Ernakulam)

CBIC vide Circular No. 76/50/2018-GST dated 31st December, 2018 clarified that taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS

Against this clarification present writ been filed and Kerala High Court has stayed the computation of GST on TCS amount vide Order dated 17th January 2019 till disposal of the petition.  

Petitioner, has submitted that the amount of 1% the dealer collects from the purchaser of a car worth that is priced at more than Rs. 10 lacs under Section 206C(1F) of the Income Tax Act, cannot be treated as an integral part of the value of the goods and services supplied by the petitioner. According to him, the petitioner, as the dealer of the motor vehicle, acts only as an agent for the State to collect the income tax under Section 206C(1F) and such amount ultimately is credited to the vehicle purchaser.

Click here to download Full Text of Judgement

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CBDT Press Release on mass prosecution notices

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Central Board of Direct Taxes (CBDT) | Press Release | 20.01.2019

New Delhi: Central Board of Direct Taxes (CBDT) today said that certain news items that appeared in a section of media regarding enmasse issue of prosecution notices to small companies for TDS default are completely misleading and full of factual inaccuracies. CBDT clarified that Mumbai Income Tax TDS office has issued prosecution show cause notices only in a limited number of big cases where more than Rs. 5 lakh of tax was collected as TDS from employees etc and yet the same was not deposited with the Income Tax Department in time.

CBDT said that some defaulter companies and vested interests are deliberately misleading the media to thwart action against themselves. Having deducted tax from employees and other taxpayers and not depositing the same in time in the government treasury is an offence punishable under the law. It also affects interest of the employees from whose salary the tax has been deducted by the unscrupulous employers who have not deposited the same in time in the government treasury. If the TDS is not deposited in time, the employee would be ineligible for claiming credit of the tax deducted when he files his own return.

CBDT stated that in last one month only in 50 big cases prosecution notices have been issued by Mumbai IT TDS office. Out of these, in 80% of the cases the TDS tax default is above Rs. 10 lakh and in 10 % cases TDS default is between Rs. 5 to 10 lakh. In the remaining 10% cases, TDS default is of more than Rs. 1 crore as detected in the survey. Prosecutions have also recently been launched against 4 big business houses where more than Rs 50 Crore of tax was collected by them from the tax payers and yet not deposited with the Government in time. But such legal and rightful action is being unfortunately projected in the media by the vested interests as if the department is going overboard to harass small employers.

It would be pertinent to note that in a country of 130 Crore people where around 6 Crore returns are filed every year, only a total of 1400 prosecutions have been filed so far for various offences under the Income Tax Act during this financial year. This, by any stretch of imagination, cannot be termed as mass harassment by the income tax department. Therefore, to say that prosecution notices enmasse have been sent to taxpayers for minor defaults is completely incorrect and misleading, CBDT added.

Source: Income Tax

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TDS Returns Software for FY: 2019-20 Released

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