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What are the duties of Tax Deductors to Deduct Tax at Lower Rates.

Where assessee has applied to Assessing Officer in prescribed Form No 13 for a certificate of either no deduction or deduction at lower rate, the Assessing Officer may issue a certificate, directing either no deduction or deduction at lower rate. The Tax deductors has to act as per such direction of the Assessing Officer.

Where the payee (recipient of income ) at his option furnishes a declaration to the Tax deductor in appropriate Form 15 H to the effect that tax on his estimated total income (including income in respect of which no deduction is sought) for the relevant previous year will be “nil”, the tax deductor shall not deduct any tax. W.e.f. 01-06-2002. No self declaration can be furnished, where relevant income for which no deduction sought,exceeds the maximum amount not chargeable to tax. The tax dedctor on receipt of such declaration is required to furnish a copy of the declaration to the concerned Chief Commissioner or Commissioner to whom the assessing officer having jurisdiction (with regard to TDS matters) to assess the tax deductor, is subordinate. The declaration is required to be furnished on or before 7th of the month, following the month in which such declaration is received by tax deductor. Failure to do so attracts penal provision.

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