Procedure, format and standards for filling an application for grant of certificate under sub-rule (4) and its proviso of Rule 28AA of Income Tax Rules, 1962
The Government of India, Ministry of Finance, Central Board of Direct Taxes, Directorate of Income-tax (Systems), New Delhi, has issued Notification No. 02/2023-Income Tax on 27th September, 2023. This notification outlines the procedure, format, and standards for applying for a certificate under sub-rule (4) and its proviso of Rule 28AA of the Income Tax Rules, 1962. This certificate is required for the deduction of Income-tax at lower rates or for no deduction of Income-tax under sub-section (1) of section 197 of the Income-tax Act, 1961, and will be processed electronically through TRACES.
F. No. CPC(TDS)/ 197 Certificate/Annex-II/2023-24
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems)
New Delhi
Notification No. 02/2023-Income Tax
Dated: 27th September, 2023
Subject: – Procedure, format and standards for filling an application for grant of certificate under sub-rule (4) and its proviso of Rule 28AA of Income Tax Rules, 1962, for deduction of Income-tax at any lower rate or no deduction of Income-tax under sub-section (1) of section 197 of the Income-tax Act, 1961 through TRACES-reg.
1. As per sub-section (1) of section 197 of the Income-tax Act, 1961(the Act), 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 under the provisions of sections 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA, [194LBA], 194LBB, 194LBC, 194M, 194-0 and 195, if the Assessing Officer is satisfied that the total income of the recipient justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, the Assessing Officer shall, on an application made by the assessee in this behalf, give to him such certificate as may be appropriate.
2. Rule 28 of the Income-tax Rules, 1962 provides for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under sub-section (1) of section 197 of the Act to be made in Form No. 13 electronically in accordance with the procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents to be laid down by the Principal Director General of Income-tax (Systems).
3. Proviso to sub-rule (4) of Rule 28AA of the Income Tax Rules, 1962, provides for issuance of certificate for deduction of tax at lower rate, to the person making such application authorizing him to receive income or sum after deduction of tax at lower rate, in cases, where the number of persons responsible for deducting the tax is likely to exceed one hundred and the details of such persons are not available at the time of making application with the person making such application. Sub-rule (6) of Rule 28AA of the Income-tax Rules, 1962, empowers the Director General of Income-tax (Systems) to lay down procedures, formats and standards for issuance of certificates under proviso to sub-rule (4) of Rule 28AA of the Income Tax Rules, 1962.
4. In exercise of the powers conferred under sub-rule (2) of Rule 28 & sub- rule (6) of 28AA of the Income-tax Rules, 1962, the Director General of Income-tax (Systems) hereby specifies the procedure, format and standards for the purpose of electronic filing of Form 13 with Annexure — II and generation of certificate under sub-section (1) of section 197 r.w. proviso to sub-rule(4) of Rule 28AA of Income Tax Rules, 1962 through TRACES as per procedure in the succeeding paragraphs which will be applicable from 01.10.2023.
Read More Click Here Source PDF