CBDT vide Notification No. F.No.275/25/2020-IT(B) dated 31st March 2020 has provided relief to the applicants of certificates for lower or nil TDS / TCS, under section 195, 197, 206C of the Act for the FY 2020-21 owing the disruption caused by COVID-19.
The date has been extended in the following cases:
- Assessees who have applied for a nil or lower rate of TDS on the TRACES portal for FY 2020-21, which are pending disposal as of date and who have been issued a certificate for the preceding FY 2019-20, such certificate shall be applicable till 30th June 2020 for FY 2020-21, or disposal of their applications, whichever is earlier.
- Assessees who could not apply for FY 2020-21 and who have been issued a certificate for FY 2019-20, such certificate shall be applicable till 30th June 2020 for FY 2020-21. However, such assessees need to apply for issue of certificate for FY 2020-21 at the earliest as per the modified procedure as soon as normalcy is restored or 30th June 2020. The modified procedure is explained later in the article.
- With respect to payments made to non-residents (including foreign companies) having a Permanent Establishment (PE) in India who are not covered by the situations mentioned above (i.e. they do not have an existing lower / nil TDS certificate for the FY 2019-20), tax is to be deducted at 10 percent (+surcharge & cess) on such payments to be made till 30th June 2020, or disposal of their applications, whichever is earlier.
- Assessees who have not applied for Nil or lower TDS/TCS certificate and who do not have a certificate for FY 2019-20, are required to make an application as per the modified procedure.
- The modified procedure for application under sections 197/206C(9) is as under:
- Applications to be made via email to the concerned Assessing Officer (AO)
- Email should contain the following data and documents:
1. Duly filled Form 13 along with Annexure I / Annexure III
2. Details / documents as required to be uploaded while filling Form 13
3. Projected Balance Sheet (BS) and Profit & Loss (P&L) Account for FY 2020-21
4. Provisional BS and P&L Account for FY 2019-20
5. BS and P&L Account for FY 2018-19
6. Form 26AS for FY 2019-20 & 2018-19
7. Income tax Return (ITR) Form for FY 2018-19
- The existing process for making applications under section 195(2) and 195(3) will continue to apply except that such applications need to be made via email to the concerned AO. The certificates under the said sections will be issued over email.
- The certificates under the modified procedure shall be issued up to 30th June 2020 or earlier, as specified by the AO communicated by email to the applicant containing the following information:
- Serial No.
- TAN of the Deductor
- PAN of the Deductee
- Financial Year
- Section under which TDS/ TCS
- Estimated Amount of income/sum to be received /paid
- Applicable rate of deduction/collection
- Valid from
- Valid to
The issuance of the certificate will be communicated to the applicant who can share the same with deductor / collector.