Lower/No Deduction of Tax at Source (TDS) in Certain Cases with or without Certificates
Income Tax Act has given relaxation of deduction of TDS in certain cases. Also there are cases in which TDS can be deducted at lower rate then prescribed in the act. Below are the cases:
Section 197: Certificate of Deduction at Lower Rate
Where, in the case of any income of any person or sum payable to any person, income tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force. But where on the application made by the assessee to the Assessing Officer, justifying that the deduction of income tax at any lower rate or no deduction of income tax, as the case may be, the Assessing Officer having regard to genuineness of the case, give him certificate for deduction of tax at ta lower rate of for non-deduction of tax.
Where any such certificate is given, the person responsible for paying the income shall, until such certificate is cancelled by the Assessing Officer, deduct income tax at the rates specified in such certificate or deduct no tax, as the case may.
Section 197A: No Deduction of TDS to be made in certain cases
(1A) In a case where the payee furnishes to the person responsible for paying any such income a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to included in computing his total income will be nil, no tax deduction shall be made bu the deductor as provided under section s 197A(1) and 197A(1A). The details of this benefit are summarized here below:
Nature of deductee who is entitled to give declaration
Section under which benefit may be obtained
|Resident Individual||Section 194 – Dividend;Section 194EE – Payments under NSS etc|
|Any payee, other than a company or a firm||Section 193 – Interest on Securities;Section 194A – Interest other than on securities;Section 194K – Income from Units|
(1B) The declarations referred to above shall not be entertained where the aggregate amount of income liable for TDS exceeds basic exemption limit.
(1C) However, senior citizens, who is of the age of 60 years or more at any time during the previous year, can file the declarations referred above irrespective of the gross amount received.
(1E) No deduction of tax shall be made from any payment to any person for, or on behalf of, the New Pension System Trust referred to in section 10(44).
(1F) No deduction of tax shall be made from such specified payment to such institution, association or body or class of institutions, associations or bodies as may be notified by the Central Government in the Official Gazette, in this behalf.