In case of pending applications for lower/nil rate of TDS/TCS for F.Y. 2019-20, the Assessing Officers have been directed to dispose off the applications through a liberal procedure by 27.04.2020, so that the taxpayers may not have to pay extra tax which may cause liquidity issues to them.
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
Dated-03rd 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‑
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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.
(Mahesh Kumar)
Director (IT-Budget), CBDT
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Relevant Posts
| Title | Notification No. | Date |
| Form 15G & 15H submitted for FY 2019-20 would be valid up to 30.06.2020 | F. No. 275/25/2020-IT(B) | 03/04/2020 |
| Lower/nil rate of TDS/TCS applications to be disposed liberally by 27.04.2020 | F. No. 275/25/2020-IT(B) | 03/04/2020 |
| Lower or nil deduction of TDS/TCS and Submission of Forms 15G & 15H | NA | 04/04/2020 |
| Certificates for lower rate/nil deduction/collection of TDS or TCS- Reg. | F. No. 275/25/2020-IT(B) | 31/03/2020 |
In respect of rental income to NRIs, TDS has to be deducted at the maximum rate even by an individual. If there are other sources of income, like interest on FDRS from the banks and if TDS deducted such incomes, itself covers more than the tax liability, there should not be any bar for granting nil deduction from rental income. Parameters to be satisfied should be specifically and clearly laid down for granting nil or lower deduction certificate, without leaving any discretion to the A.Os in the matter. To the extent possible these should be inbuilt in online programming itself. Otherwise it will leave scope for harassment and other mal practices. Now while filing applications certain documents are also required to be uploaded. All the documents, required for consideration should be asked to be uploaded at the time of filing the on line application itself. AOs should not be given any discretion to ask any further documents. There should also be a provision to appeal against the decision of the AO.