In accordance with letter of Directorate of Income Tax (System) regarding issuing certificates for no deduction/collection of tax or deduction/collection of tax at lower rates under section 197/206C of the Income Tax Act.
Important points to Issue of TDS/TCS Certificates :
Sections 197/206C of the Income Tax Act provide for issue of certificates for no deduction/collection of tax or for deduction/collection of tax at lower rates by Assessing Officers. At present, such certificates are being issued manually.
With a view to ensure that no deduction/collection of tax or deduction/collection of tax at lower rate is made by the deductor only on the basis of a certificate issued by the Assessing Officer and also to verify the lower rate authorized by the Assessing Officer, a new functionally has been provided in the TDS module of the ITD application for issue of TDS/TCS certificates under section 197/206C(9).
Functionality has also been provided to cancel the certificates issued.
Privilege to issue the certificates/collection has been given to the ITO(TDS) as mentioned in Notification No. 224 dated 10.08.2007.
An All India Unique Certificate Number will be generated and printed on the certificate issued. This number would be unique across RCCs and would be validated at the time of processing of the TDS/TCS returns for verifying the rate at which tax was authorized to be deducted/collected at source.
Further, since the Finance (No.2) Bill, 2009 proposes to make quoting of PAN mandatory for issue of TDS/TCS certificates under section 197/206C(9), the software has been modified to make the field of PAN of applicant mandatory.
In view of the emphasis on tracking of such certificate it is suggested that manual issue of such certificates could be discountined and only certificates issued as per the prescribed procedure be taken cognizance of.
Annexure of TDS Instruction No. 36 (Click Here)
Important points to Issue of TDS/TCS Certificates :
Sections 197/206C of the Income Tax Act provide for issue of certificates for no deduction/collection of tax or for deduction/collection of tax at lower rates by Assessing Officers. At present, such certificates are being issued manually.
With a view to ensure that no deduction/collection of tax or deduction/collection of tax at lower rate is made by the deductor only on the basis of a certificate issued by the Assessing Officer and also to verify the lower rate authorized by the Assessing Officer, a new functionally has been provided in the TDS module of the ITD application for issue of TDS/TCS certificates under section 197/206C(9).
Functionality has also been provided to cancel the certificates issued.
Privilege to issue the certificates/collection has been given to the ITO(TDS) as mentioned in Notification No. 224 dated 10.08.2007.
An All India Unique Certificate Number will be generated and printed on the certificate issued. This number would be unique across RCCs and would be validated at the time of processing of the TDS/TCS returns for verifying the rate at which tax was authorized to be deducted/collected at source.
Further, since the Finance (No.2) Bill, 2009 proposes to make quoting of PAN mandatory for issue of TDS/TCS certificates under section 197/206C(9), the software has been modified to make the field of PAN of applicant mandatory.
In view of the emphasis on tracking of such certificate it is suggested that manual issue of such certificates could be discountined and only certificates issued as per the prescribed procedure be taken cognizance of.
Annexure of TDS Instruction No. 36 (Click Here)
