On March 31, 2020, the Central Board of Direct Taxes (CBDT) issued some new provisions related to Tax Deducted at Source (TDS) and Tax Consultancy Service (TCS) collections and other related works. The provisions were introduced because of the outbreak of COVID-91 in the country. The provisions were issued related to the issue of certificates of the lower rate, issue of certificates of nil deductions and the collections of TDS and TCS.
The provisions were issued by the board under Section 119 of the Income Tax Act, 1961. The changes were made in Section 195, 197 and 206C consisting of provisions related to the issue of certificates of the lower rate, issue of certificates of nil deductions and the collections of TDS and TCS. The circular was signed by Mahesh Kumar, Director of Income Tax Budget.
The outbreak of the virus has disrupted the working of the Income Tax Department. The applications filed by the assessees under section 195 and 197 of the Income Tax Act, 1961, related to issue of certificates of lower rate and issue of certificates of nil deductions under TDS and TCS, were not received by the officers for the previous year 2019-20, causing numerous problems in the department.
CBDT has ordered that those taxpayers who have submitted or are eligible to file the applications for the issue of certificates of lower rate and issue of certificates of nil deductions under Tax Deducted at Source (TDS) or TDS will be given a relation of date and the certificates will be made applicable till 30th June 2020. The payment made to the NRIs (Non Residents of India) permanently located in the country will be deducted inclusive of surcharge and cess, at the rate of 10% for the previous year 2019-20
