CBDT issues Order u/s 119 of the Income-tax Act, 1961 on the issue of certificates for lower rate/nil deduction/collection of TDS or TCS u/s 195, 197 and 206C(9) of the Act for Financial Year 2019-20.
In view of the hardships faced by taxpayers due to the COVID-19 pandemic, CBDT issues order dated 3rd April, 2020 easing the process of issue of certificates for lower rate/nil deduction/collection of TDS or TCS for the FY 2019-20.
CBDT said the assessees who have filed an application for issue of a certificate for lower rate/nil deduction/collection of Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) in the financial year 2019-20 on the TRACES portal will now have to intimate the Assessing Officer about the pendency of issue such a certificate via e-mail.
The Order further requires that the Assessing Officer shall dispose-off the applications by April 27, 2020, and communicate the same to the applicant regarding the issuance/rejection of certificate vide email. The applicant shall communicate the certificate to the respective payees or buyers/lessees.
Earlier on 31.03.2020, vide an Order CBDT had extended the validity date of lower TDS/TCS certificates that is ending on 31.03.2020, for a period of three months to June 30,2020.
Although the financial year 2019-20 has ended on 31.03.2020 this order will only benefit those payees or buyers etc in case payment is not yet received for the FY 2019-20. In case the tax is already deducted and deposited by the educators or collectors on the due basis, then also this order has no significance for FY 2019-20 but can help for deduction of taxes at the lower rates as specified in the certificate since the validity of those certificates ending on March 31, 2020 have been extended till 30.06.2020.
Details of AOs shall remain the same as specified for the Order dated 31.03.2020.
Read the full text of the CBDT Order dated 03-04-2020 for Speedy Disposal of Lower TDS or TCS Certificates for FY 2019-20
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
3rd April, 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) of the Act for Financial Year 2019-20-reg
Due to outbreak of pandemic Covid-19 virus, there is severe disruption in the normal working of almost all sectors of economy including functioning of the Income Tax Department. In such a scenario, the applications filed by the payees u/s 195 and 197 of the Act for lower or nil rate of deduction of TDS and by buyers/licensees/lessees u/s 206C (9) of the Act for lower rate of collection of TCS for F.Y. 2019-20, may not be attended in a timely manner by the TDS-Assessing Officers. This may cause genuine hardship to the payees and buyers/licensees/lessees who have raised the invoice in FY 2019-20 but have not received the payment for the same till date. As payees and buyers/licensees/lessees were not able to intimate the rate of deduction/collection on such amount to the payer and seller/licensor/lessor, this has created uncertainty about the rate at which the tax is to be deducted/collected by the payer and seller/licensor/lessor at the time of crediting/debiting the amount in his books of account for FY 2019-20.
2. Considering the constraints of the Field Officers in disposing of the pending applications for lower or nil rate of TDS/TCS for FY 2019-20 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.
3. In all the cases where assessees (payees or buyers/licensees/lessees) have timely filed application for lower or nil deduction of TDS/TCS on the TRACES Portal for F.Y.2019-20 and such applications are pending for disposal as on date, the applicant shall intimate, vide an e-mail addressed to the Assessing Officer concerned, the pendency of such applications for FY 2019-20 for the lower/nil deduction/collection certificate under sections 195, 197 or 206C(9) of the Income-tax Act along with the required documents and evidences of filing their application in TRACES Portal.
4. The Assessing Officer shall dispose of the applications by 27.04.2020 and communicate to the applicant regarding the issuance/rejection of certificate vide email. The certificate issued for lower/nil rate TDS or lower TCS shall be applicable for the amount credited/debited during the FY 2019-20 after the date of making of application u/s 195,197 or 206C(9) but remained unpaid or not received till the date of issuance of the certificate by the Assessing Officer.
5. The issuance of certificate shall be communicated to the applicant who in turn shall share the same with the deductor/collector.
Download copy of CBDT Order dated 03-04-2020 for Speedy Disposal of Lower TDS or TCS Certificates for FY 2019-20
3. In all the cases where assessees (payees or buyers/licensees/lessees) have timely filed application for lower or nil deduction of TDS/TCS on the TRACES Portal for F.Y.2019-20 and such applications are pending for disposal as on date, the applicant shall intimate, vide an e-mail addressed to the Assessing Officer concerned, the pendency of such applications for FY 2019-20 for the lower/nil deduction/collection certificate under sections 195, 197 or 206C(9) of the Income-tax Act along with the required documents and evidences of filing their application in TRACES Portal.
4. The Assessing Officer shall dispose of the applications by 27.04.2020 and communicate to the applicant regarding the issuance/rejection of certificate vide email. The certificate issued for lower/nil rate TDS or lower TCS shall be applicable for the amount credited/debited during the FY 2019-20 after the date of making of application u/s 195,197 or 206C(9) but remained unpaid or not received till the date of issuance of the certificate by the Assessing Officer.
5. The issuance of certificate shall be communicated to the applicant who in turn shall share the same with the deductor/collector.
( Mahesh Kumar)
Director (IT-Budget), CBDT
Download copy of CBDT Order dated 03-04-2020 for Speedy Disposal of Lower TDS or TCS Certificates for FY 2019-20
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