CBDT mandates issue of nil TDS certificate to deductor and lower TDS certificate to recipient of income

As per the Provision of the Income Tax Act, 1961 ('the Act'), CBDT has issued a notification on 24th September 2014 regarding issuing of TDS Certificate to TDS Deductee. In this notification CBDT mandates to issue TDS Certificate by TDS Deductor to TDS Deductee even NIL TDS. Income Tax Department has bee made 9th Amendment Rule, 2014 and amended in Rule 28AA by substitution a New Form No. 13. The Form no. 13 is an application by a person for a certificate u/s 197 and or 206C(9) of the Income Tax Act, 1961 for no deduction/ collection of Tax at lower rate.

The Central Board of Direct Taxes ('The Board') vide notification dated 24th September 2014 amended the following by Section 295 read with Section 197 of the Income Tax Act, 1961 (43 of 1961):

1.(1) These rules may be called the Income tax (9th Amendment) Rules, 2014.

   (2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income Tax Rules, 1962-(a) in Rule 28AA, for sub rule (4) and sub rule (5), the following sub-rules shall be substituted, namely:-

“(4) The certificate for no deduction of tax shall be valid only with regard to the person responsible for deducting the tax and named therein.

(5) The certificate referred to in sub-rule (4) 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.

(6) The certificate for deduction of tax at lower rate shall be issued to the person who made an application for issue of such certificate, authorising him to receive income or sum after deduction of tax at lower rate.”;

Download CBDT mandates issue of nil TDS certificate Notification (Click Here)

Download Appendix-II, for Form No.13 (Click Here)