TDS Benefits to NRIs and Residents By CS Lalit Rajput

Exception from Online Filing of Application under Section 197 and 206C (9) in the cases of NRIs and Resident Applicants

Income Tax Dept. allows manual filing by resident, NRI taxpayers for nil/lower TDS certificate.

Vide Notification No. 74/2018 dated 25.10.2018, Rule 28 of the Income Tax Rules, 1962 was amended to prescribe electronic filing of an application for lower deduction or no deduction under section 197 of Income Tax Act, 1961 using a digital signature or EVC. Similar changes were also made in Rule 37G to prescribe electronic filing of an application under section 206C (9) for lower or nil rate of tax collection at source (TCS). The functionality for online filing has since been made available by CPC-TDS through TRACES portal. Form No. 13 is the common form for application under Section 197 and 206C (9).

For proper administration of the provisions of Section 197 and 206C (9) and to remove genuine hardship being faced by certain applicants in filing an online application in Form No. 13, the Central Board of Direct Taxes (CBDT) has:

i). Exempted Non-Resident Indians (NRIs) from online filing of application for the facility of ‘Nil’ or reduced rate of tax deduction at source (TDS) for certain payments.

ii) NRIs — who are unable to register on TRACES — can till 31st March, 2019, manually apply for the ‘Nil’ or reduced TDS rate under Section 197 of income tax law. This manual application can be made either with TDS officer or in ASK centers.
iii). The same facility of the manual application has been extended to resident applicants till December 31, 2018 (manual application in Form 13).

Click here to read the disclaimer

Write a Comment