CBDT provides relaxation for application of lower/NIL deduction TDS certificates

CBDT provides relaxation for application of lower/NIL deduction TDS certificates w.r.t. FY 2020-21
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CBDT provides relaxation for application of lower/NIL deduction TDS certificates w.r.t. FY 2020-21

Due to the outbreak of the COVID-19 pandemic and the lockdown has caused disruption in the functioning of the Income Tax Department. This has lead to many applications that were made by many payees who have applied for the Lower/ Nil deduction TDS/TCS certificates u/s 195 or 197 or 206C(9) which could not be attended by the Income-tax officers in a timely manner.

CBDT has issued an order u/s 119 dated 31st March 2020 for assurance of taxpayers which provides relaxation in the process of application and issuance of lower/ nil rate certificate of TDS or TDS for the Financial year 2020-21.

Considering the hardships of assessees and Assessing Officers, CBDT has made the following clarifications:-
Assessees who had lower/NIL rate TDS certificate in the FY 2019-20
  • Assessees who have APPLIED for the FY 2020-21 – Assessees whose applications are pending for disposal on the TRACES portal, then the certificates issued in FY 2019-20 would be applicable up to 30th June 2020 or the date of disposal of application, whichever is earlier.
  • Assessees who have NOT APPLIED for the FY 2020-21 – The certificates issued in FY 2019-20 would be applicable up to 30th June 2020. However, the need to apply for the certificate at the earliest as soon as the normalcy is restored as explained below.
 Assessees who did not have lower/NIL rate TDS certificate in the FY 2019-20

Assessees who have NOT APPLIED for the FY 2020-21 –  A modified procedure for application and consequent handling by the Assessing Officer is laid down as explained below.

NRI Assessees having Permanent Establishment in India

Regarding payment required to be made to NON- RESIDENTS having Permanent Establishment in India (not covered above) – Tax shall be deducted at the rate of 10% (including surcharge and cess), on payments made till 30.06.2020 or disposal of their applications, whichever is earlier.

How to apply for a lower/NIL TDS certificate through email considering the COVID-19 pandemic?

An assessee who intends to apply for the lower/NIL rate TDS Certificate shall apply for the same to the concerned Assessing Officer.

The e-mail shall contain the following attachments: –

  1.  Duly filled Form 13 along with annexure and supporting documents. (Annexure I and Annexure-III)
  2.  Documents/information which is required to be uploaded on TDS-CPC for filling up FORM 13.
  3. Projected Balance Sheet and Profit & Loss Account for the FY 2020-21.
  4. Provisional Balance Sheet and Profit & Loss Account for the FY 2019-20.
  5. Balance Sheet and Profit & Loss Account for the FY 2018-19.
  6. Form 26AS for the FY 2019-20 and FY 2018-19.
  7. Acknowledgment of ITR for the FY 2018-19.

The whole process as followed earlier will remain the same except that the application will be made via e-mail and the certificate will be issued via e-mail.



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About CA Mehul Gupta 30 Articles
Chartered Accountant in practice, Certified GST Practitioner & Commerce Graduate. He is mainly engaged in the practice of Direct taxes, GST, International taxation, & assurance services. A visiting faculty in the Faridabad Branch of ICAI.

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