CBDT issues orders u/s 119 of IT Act, 1961 to mitigate hardships to taxpayers arising out of compliance of TDS/TCS provisions
Due to outbreak of the Covid-19 pandemic, the CBDT has issued the following directions/clarifications by exercise of its power u/s 119 of the Income-tax Act, 1961:
1. All the assesses who had taken certificate for lower deduction or nil deduction of TSD/TCS for F.Y. 2019-20 and have filed same application for F.Y. 2020-21. These applications are pending for disposal till date, then such certificates will be applicable till 30.06.2020 of F.Y. 2020-21 or disposal of these applications, whichever is earlier.
2. In the cases, assesses who had taken certificate for lower deduction or nil deduction of TSD/TCS of F.Y. 2019-20 and have not filed same application for F.Y. 2020-21, such certificates will be applicable till 30.06.2020 of F.Y. 2020-21. However, they have to apply at earliest by giving details of transactions and the Deductor/Collector details to the TDS/TCS Assessing Officer in prescribed manner.
3. Payment to Non-residents having Permanent Establishment in India, where above applications are pending, TDS will be deducted at the subsidised rate of 10% including surcharge and cess on such payments till 30.06.2020 of F.Y 2020-21 or disposal of these applications, whichever is earlier.
4. To mitigate the hardships of small taxpayers, If person had submitted valid Forms
15G and 15H to Banks or other institutions for F.Y. 2019-20, then thses forms will be valid upto 30.06.2020. This will safeguard the small tax payers against TDS where there is no tax Liability.
Regards,
Company Salahkar Team
Email: Info@companysalahkar.com
Mob.: 7827515372