Due to the outbreak of the Corona pandemic – there have been several restrictions in the working of the Income Tax Department. Therefore, applications filed by the payees under s. 195 and 197 of the ITA for lower of NIL rate of TDS deduction and applications by buyers/ licensees/lessees under s. 206C(9) of the ITA for lower or NIL rate of collection  of TCS for FY 2020-2021, have not been attended to in a timely manner by the TDS/TCS Assessing Officer’s, causing hardship to taxpayers.

Considering the constraints of the Field Officers in disposing of the application for lower or NIL rate of TDS/TCS and to mitigate the hardships of payees and buyers/licensees/lessees, the CBDT issues the following directions/clarifications by exercise of it’s powers under s. 119 of the ITA

  • All assessee’s who have filed application for lower or NIL deduction of TDS/TCS on the Traces Portal for FY 2020 – 21 and whose applications are pending for disposal as on date and they have been issued such certificates for FY 2019 – 20, then such certificates would be applicable till 30th June 2020 of FY 2020 – 2021 or disposal of the applications by the Assessing Officer whichever is earlier.
  • In case where assesses could not apply for issue of lower or NIL deduction of TDS/TCS on the Traces Portal for FY 2020 – 21, but have certificates for FY 2019 – 20, such certificates will be applicable till 30th June 2020 of FY 2020 – 21. However, they need to apply to the TDS / TCS Assessing Officer at the earliest.
  • For assessee’s who have not applied for issue or NIL deduction of TDS/TCS in the Traces Portal, and he does not have a certificate for FY 2019 – 20, a modified procedure or application is enclosed to the notification.

Complete notification attached for your reference.