CBDT to clear applications pending amid Covid-19 crisis for lower, nil TDS/TCS certificates

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Published: April 4, 2020 6:12:29 PM

CBDT said assessees whose applications for lower or nil deduction of tax deducted at source (TDS)/tax collected at source (TCS) for FY20 are pending for disposal will have to give an email intimation.

CBDT had also extended the validity of all lower withholding tax orders where such certificates were issued for the previous financial year 2019-20.

The Central Board of Direct Taxes (CBDT) in a notification on Friday said that assessees including payers or buyers/licensees/lessees) whose applications for lower or nil deduction of tax deducted at source (TDS)/tax collected at source (TCS) for FY20 are pending for disposal will have to give an email intimation to the Assessing Officer about the pendency of issuance of such certificates. The email should also have “the required documents and evidences of filing their application in TRACES portal,” the notification read.

“The Assessing Officer shall dispose off the applications by April 27, 2020, and communicate to the applicant regarding the issuance/rejection of certificate vide email,” CBDT said in the notification. The board reasoned that due the Coronavirus, the applications filed by the assessees “may not be attended I a timely manner by the TDS-Assessing officers. This may cause hardship to the payees and buyers/licensees/lessees who have raised the invoice in FY20 but have not received the payment for the same till date,” it added.

Also read: Coronavirus impact: Income Tax dept allows more time to file TDS exemption forms — check details

CBDT had also extended the validity of all lower withholding tax orders where such certificates were issued for the previous financial year 2019-20 from March 31, 2020, to June 30, 2020. The Income Tax Department had recently allowed individuals to submit Form 15G and 15H for the current financial year after June 30 to claim TDS exemption on interest income to provide relief to taxpayers amid the Coronavirus pandemic, PTI reported. The two forms are filed by those having incomes below the taxable threshold in order to seek exemption from TDS on interest income.

Amid required measures to support individuals and businesses impacted by Covid-19, finance minister Nirmala Sitharaman had recently announced the extension of the deadline to file IT returns to 30 June 2020. The minister had also cut interest rate to 9 per cent from 18 per cent on delayed deposit of TDS. Businesses with less than Rs 5-crore turnover would not be required to interest, late fee, or penalty while for bigger companies, late fee and penalty won’t be charged. However, the interest will be levied at a reduced rate of 9 per cent.

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