Certificate for receipt of interest etc u/s 195 without TDS. Persons subjected to concealment penalty can also apply-CBDT Notification 31/2016
As per section 195(3) any person entitled to receive interest / other sums on which TDS is required to be deducted may apply to Assessing Officer in Form 15C/15D for grant of certificate for payment without deduction of tax.
As per Rule 29B, one of the conditions of elegibility for applying is that the person has not been subjected to penalty u/s 271(1)(c) for concealment or furnishing inaccurate particulars of income.
This condition has been omitted by CBDT by the following notification, meaning thereby that even persons subjected to concealment penalty u/s 271(1)(c) can also apply for certificate for receipt of payment of interest/other sums u/s 195 without deduction of tax at source.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 31/2016
New Delhi, the 5th May, 2016
INCOME-TAX S.O. 1655 (E).‐ In exercise of the powers conferred by section 295 read with section 195 of the Income‐tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules further to amend the Income‐tax Rules, 1962, namely:‐
1. (1). These rules may be called the Income-tax (12th Amendment) Rules, 2016. (2). They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in rule 29B, in sub-rule (2), the clause (iii) shall be omitted.
(PITAMBAR DAS) DIRECTOR
(TAX POLICY AND LEGISLATION)
Note: The principal rules were published in the Gazette of India vide notification number S.O.969(E), dated the 26th March, 1962 and last amended vide notification number S.O.1587 (E), dated the 29th April, 2016.