Income Tax

Issue certificate of Nil or lower rate TDS u/s 197 and 195 within 30 days-CBDT instruction

Certificate of Nil-lower rate TDS u/s 197 and 195 of the Income Tax Act, 1961 to be issued within 30 days timeline- CBDT 

CBDT has instructed Income Tax Officials to adhere to prescribed time limit for issue of certificate of no deduction or deduction of tax at lower rate u/s 197 and 195 of the Income Tax Act, 1961

As per instruction issued in this regard, attention has been drawn to the time-line of 30 days prescribed as per the Citizen’s Charter-2014 for issue of  certificates for no deduction of tax or deduction of tax at lower rate under section 197 or 195 of the Act.

The instruction says that several instances of inordinate delay in issue of such certificates and non-adherence to  the said  time-line have been brought to the notice of the Board, which have been viewed adversely.

The CBDT has reiterated that the 30 days time-line for issue of certificates u/s 197 or 195 of the Act must be adhered to scrupulously and disposal of applications beyond the said time limit must be for justifiable reasons to be recorded in writing and duly approved by CIT (TDS)/ CIT (Intl. Tax) concerned.

It has been stated that the Board shall view seriously, any delay without valid reasons and shall hold CIT (TDS)/ CIT (Intl. Tax) concerned responsible in this regard

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