Online certificate u/s 195(2) and 195(3) for lower/ no deduction

TDS Instruction No . 51

Directorate o f Income Tax (System)
ARA Center, Ground Floor, E -2, Jhandewalan Extension
New Delhi – 110055

F.No. SW/TDS/02/02/2013/DIT(S)-II   Dated 04.02.2016

To
The Pr . Chief Commissioner of Income-tax (International Taxation), New Delhi
The Chief Commissioners of Income-tax (International Taxation), Mumbai, Bengaluru
The Commissioners of Income-tax (International Taxation), Ahmedabad, Bengaluru Chennai, Delhi (I , II & III), Hyderabad , Kolkata , Mumbai (I & II) and Pune
The Commissioners  of Income-Tax (L.T . U.) New Delhi, Mumbai, Bengaluru, Chennai, Kolkata

Sir / Madam ,

Sub: Issuance of online certificate u/s 195(2) and 195(3) – reg.

Request has been received from field formations and tax payers to provide functionality for  issue of  online certificate  u/s  195(2) and  195(3) for  lower / no deduction  as manual certificates were not being considered during processing of TDS statements by CPC TDS.

2. In this regard, existing functionality to issue online certificate u/s 197 in ITD application has been enhanced to issue online certificate u/s 195(2) and 195(3) as under:

(i) Assessing Officers of International taxation charges who are authorized to issue certificate u/s 195(2) and 195(3) may be assigned the role AR_I NT_TAXATION in ITD  application by respective Computer Center through HRMS module , if not already  assigned . The certificate type i.e. 197/195(2)/195(3) also needs to be specified

(ii) For issue of certificate u/s 195(2) and 195(3), jurisdiction restriction of PAN has been relaxed. For issue of certificate u/s 195(3) , TAN and Amount has been made optional.

(iii) As per existing procedure for issue of certificate u/s 197 , certificates u/s 195(2) and 195(3) is required to be approved by Range officer through ITD application.

3. The above functionality may kindly be brought to the notice of AOs under your charge.

Yours faithfully,

(Sanjeev Singh)
Addl DGIT(S)-2, New Delhi