• Apr
  • 01
  • 2011

Amendment in Rules & Form No.13 related to Certificate for deduction at lower rates or no deduction of tax from income other than dividends

Notification No.  16/2011, Dated: March 29, 2011

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Second Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011.

2. In the Income-tax rules, 1962,-

(a) for rule 28AA, the following rule shall be substituted, namely:-

“Certificate for deduction at lower rates or no deduction of tax from income other than dividends.

28AA. (1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.

(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by Assessing Officer after taking into consideration the following:-

(i) tax payable on estimated income of the previous year relevant to the assessment year;

(ii) tax payable on the assessed or returned income, as the case may be, of the last three previous years;

(iii) existing liability under the Income-tax Act,1961 and Wealth-tax Act, 1957;

(iv) advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;

(v) tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and

(vi) tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.

(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.

(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.

(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.”

(b) in rule 3IA, in sub-rule (4), after clause (iv), the following clauses shall be inserted, namely:-

“(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;

(c) in Appendix-II , for Form No.13, the following Form shall be substituted, namely:-

“FORM NO.13
[See rules 28 and 37G]
Application by a person for a certificate under sections 197
and/or 206C(9) of the Income-tax Act, 1961, for no
*deduction/collection of tax or *deduction/
collection of tax at a lower rate

To
The Assessing Officer,

1. *I,_____________________________________________ of _______________ do, hereby, request that a certificate may be issued to the person responsible for paying to me the incomes/sum by way of salary/interest on securities/ interest other than “interest on securities”/insurance commission/commission (not being insurance commission) or brokerage/commission, etc., on the sale of lottery tickets/fees for professional or technical services/any sum by way of payment to contractors and subcontractors/dividends/rent/income in respect of units/sum by way of payment of compensation on acquisition of immovable property (strike out whichever is not applicable) authorising him not to deduct income-tax/to deduct income-tax at the rate of ___________ per cent at the time of payment to me of such income/sum. The particulars of my income and other details are as per para 2.

and/or

*I, _______________________________________________ of _________________ do, hereby, request that a certificate may be issued to the seller, being the person responsible for collecting the tax from me in respect of the amount payable by me as the buyer of ________________________ [specify the nature of goods referred to in the Table in sub-section (1) of section 206C]/lessee or licensee of ________________________ [specify the nature of contract or licence or lease referred to in the Table in sub-section (1C) of section 206C] (Strike out whichever is not applicable) authorizing him to collect income-tax at the rate of _____________________ per cent at the time of debit of such amount to my account or receipt thereof from me, as the case may be. The particulars of my income and other details are as per para 2.

2. The particulars of my income and other details are as under:

(i) Status

(State whether individual, Hindu undivided family,
firm, body of individuals, Company, etc.)

(ii) Residential status
(Whether resident/resident but not ordinarily
resident/non-resident)

(iii) Permanent Account No. (PAN)

(iv) Tax Deduction and Collection Account No. (TAN)

(v) Details of returns/statements which have become due but have not been filed:

(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.”

Section under which return/
statement has become due
Assessment
year/quarter
Due date for filing Reason for not filing
(1) (2) (3) (4)
Section 139
Section 200
Section 206C

(vi) Details of returned income/assessed income for the last three assessment years:
(enclose copies of returns of income filed along with their enclosures and copies of assessment orders, if
assessed, for the last three assessment years.)

Assessment year Total income as per
return of income
Total income as
per latest
assessment
Total tax including
interest payable on
returned income
Total tax including
interest payable on
assessed income
(1) (2) (3) (4) (5)

(vii) Details of tax payment for the last three assessment years:

Assessment
year
Total
payment of tax including
interest
Tax paid by
way of
Advance
tax
Credit
claimed for tax
deduction at source.
Credit
claimed for
tax collection
at source.
Tax paid by
way of self
assessment
tax
Tax paid in response to notice of
demand
under section
156
(1) (2) (3) (4) (5) (6) (7)

(viii) Details of sales, profit, etc. for the last three previous years in the case of assessee whose income
include income under the head “Profits and gains of business or profession”:
(enclose copies of profit and loss account and balance sheet along with audit report, if audited, for the
last three previous years)

Gross sales,
turnover receipt of
business or
profession
Gross sales,
turnover receipt of
business or
profession
Gross profit Net profit
In rupees In percentage to amount stated in column (1) In rupees In percentage to amount stated in
column (1)
(1) (2) (3) (4) (5) (6)

(ix) Details of existing liability under Income-tax Act, 1961 and Wealth-tax Act, 1957:

Assessment
Year/ period
Liability under the Income-tax Act, 1961 Amount
payable under
the Wealth-tax
Act, 1957
Amount
payable in
respect of
advance-tax
Amount
payable for
selfassessment
tax
Amount for which
notice of demand
under section 156
has been served but
not paid.
Amount payable
as deductor or
collector which
had become due
but not paid.
(1) (2) (3) (4) (5) (6)

(x) Assessment year to which the payments relate

(xi) Estimated total income of the previous year relevant to the assessment year referred to in (x) above
(give detailed computation and basis thereof)

(xii) Total tax including interest payable on the income at (xi)

(xiii) How the liability mentioned in col. (ix) and col. (xii) is proposed to be discharged?

(xiv) Details of payment of advance-tax and tax already deducted/collected for the assessment year relevant to the current previous year till date.

Nature of prepaid tax Date of payment/deduction/collection
Advance tax
TDS
TCS

(xv) Details of income claimed to be exempt and not included in the total income in col. (xi) (Please append a note giving reason for claiming such exemption).

(xvi) Please furnish the particulars in Annexure-I in respect of no deduction of tax or deduction of tax at a lower rate under section 197 and/or in Annexure-II for collection of tax at lower rate under section 206C(9) of the Income-tax Act, as the case may be.

*I, ________________________________ the trustee/co-trustee of _______________________________ do hereby declare that the securities/sums/shares, particulars of which are given in the Annexure, are properly held under trust wholly for charitable or religious purposes and that the income therefrom qualifies for exemption under sections 11 and 13 of the Income-tax Act, 1961.

*I declare that the securities/sums/shares, particulars of which are given in the Schedules above, stand in my name and are beneficially owned by me, and the income therefrom is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I further declare that what is stated in this application is correct.

Date ___________ ___________________
Signature
Place __________ ___________________
Address

ANNEXURE I
[For the purpose of tax deduction at source]
Please furnish the particulars with the Schedules below in respect of the payments for which the certificate is
sought.

SCHEDULE I

Description of securities Number of securities Date of
securities
Amount of securities Estimated amount of
interest to be received
(1) (2) (3) (4) (5)

SCHEDULE II

Sl.
No.
Name and address of
the person to whom the
sums are given on
Interest
Amount
of such
sums
The date on which
such sums were
given on interest
Period for which
such sums were
given on Interest
Rate of
interest
Estimated
amount of
interest to
be received
(1) (2) (3) (4) (5) (6) (7)

SCHEDULE III

Sl. No. Name and address of person responsible for paying insurance commission Estimated amount of insurance commission
(1) (2) (3)

SCHEDULE IV

Sl.
No.
Name and address of the company No. of shares Class of shares and face value of each share Total face value of shares Distinctive numbers of shares Estimated amount
of dividend to be
received
(1) (2) (3) (4) (5) (6) (7)

SCHEDULE V

Sl.
No.
Name and
address of the
employer
Period of
employment
Amount of salary
received
Income from
house property
Income from sources other than salary and income from house property Estimated total
income
(1) (2) (3) (4) (5) (6) (7)

SCHEDULE VI

Sl. No. Name and address of person responsible for paying rent Estimated amount of rent to be received
(1) (2) (3)

SCHEDULE VII

Sl.
No.
Name and
address of the
mutual fund
No. of
units
Classes of units
and face value of
each unit
Total face
value of
units
Distinctive
numbers of
units
Estimated amount
of income to be
received
(1) (2) (3) (4) (5) (6) (7)

SCHEDULE VIII

Sl. No. Name and address of person responsible for paying commission (not being insurance commission referred to in section 194D) or brokerage. Estimated amount of commission (not being
insurance commission referred to in section 194D) or brokerage to be received
(1) (2) (3)

SCHEDULE IX

Sl.
No.
Full name and
address of the
authority/person
with whom the
contract was made
Date of
the
contract
Nature of
the contract
Date by which
work on the
contract would
be completed
Sums expected to be credited/ paid
in pursuance of the contract during
the current previous year and each
of the three immediately succeeding
years
(1) (2) (3) (4) (5) (6)

SCHEDULE X

Sl. No. Name and address of person(s) responsible for paying commission, remuneration or prize (by whatever name called) on the sale of lottery tickets Estimated amount of commission/
remuneration/prize to be received (strike out
whichever is not applicable)
(1) (2) (3)

SCHEDULE XI

Sl. No. Name and address of person(s) responsible for paying fees for professional/technical services Estimated amount of fees for professional/technical services to be received
(strike out whichever is not applicable)
(1) (2) (3)

SCHEDULE XII

Sl. No. Name and address of person responsible for paying compensation or enhanced compensation or the
consideration or enhanced consideration on account of
compulsory acquisition of immovable property
Estimated amount of compensation or the
enhanced compensation or consideration or the
enhanced consideration
(1) (2) (3)

Date ____________

(Signature) _________

Place ______________

(Address)__________________

ANNEXURE II
[For the purpose of tax collection at source]

Please furnish particulars of the amounts payable in respect of which the certificate is sought in the schedules below:-

SCHEDULE I

Sl.
No.
Full name and
address of the
seller
Date of sale with
reference number of
such sale
Nature and description
of the goods sold and
details of sale
Amounts expected to be debited/
paid in pursuance of the sale during
the current financial year and each of the three immediately succeeding
years.
(1) (2) (3) (4) (5)

SCHEDULE II

Sl.
No.
Full name and
address of the
person granting
lease or licence
Date of grant of
lease or licence or
contract or transfer
of right with
reference number
Nature of contract or
licence or lease and
description and
details of the contract
Amounts expected to be debited/ paid
in pursuance of the contract during
the current financial year and each of
the three immediately succeeding
years.
(1) (2) (3) (4) (5)

Date _______________

_______________
Signature of the buyer
Full Name ____________
Designation _____________”

F.No.133/11/2011-SO(TPL)

(Rajesh Kumar Bhoot)
Director (Tax Policy and Legislation)

Note. The principal rules were published vide, Notification No.S.O.969(E), dated 26th March, 1962 and last amended by the Income-tax (First Amendment) Rules, 2011 vide Notification S.O.495(E) dated 9th March, 2011.


One Response to “Amendment in Rules & Form No.13 related to Certificate for deduction at lower rates or no deduction of tax from income other than dividends”

  1. Mihir Naik says:

    Is there any last date of Application of Form no. 13 ?

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