In order to curb the difficulties caused to the coronavirus pandemic, the Central Board of Direct Taxes (CBDT) has directed all the TDS assessing officers to dispose of the applications through e-mail.
An order issued by the Board on Friday said that in the current scenario where the COVID-19 virus outbreak turned into a pandemic caused severe disruption in all the sectors, the applications filed by the payees u/s 195 and 197 of the Act for lower or nil rate of deduction of TDS and by various categories of persons for the lower rate of collection of TCS for F.Y. 2019-20, may not be attended in a timely manner by the TDS–Assessing Officers.
“This may cause genuine hardship to the payees and buyers/licensees/lessees who have raised the invoice in FY 2019-20 but have not received the payment for the same till date. As payees and buyers/licensees/lessees were not able to intimate the rate of deduction/collection on such amount to the payer and seller/licensor/lessor, this has created uncertainty about the rate at which the tax is to be deducted/collected by the payer and seller/licensor/lessor at the time of crediting/debiting the amount in his books of account for FY 2019-20,” the Board pointed out.
Addressing the issue, the Board directed that these applications should be considered and disposed of through online by the Assessing Officer.
“In all the cases where assessees (payees or buyers/licensees/lessees) have timely filed an application for lower or nil deduction of TDS/TCS on the TRACES Portal for F.Y.2019-20 and such applications are pending for disposal as on date, the applicant shall intimate, vide an e-mail addressed to the Assessing Officer concerned, the pendency of such applications for FY 2019-20 for the lower/nil deduction/collection certificate under sections 195, 197 or 206C(9) of the Income-tax Act along with the required documents and evidence of filing their application in TRACES Portal,” the order said.
“The Assessing Officer shall dispose of the applications by 27.04.2020 and communicate to the applicant regarding the issuance/rejection of certificate vide email. The certificate issued for lower/nil rate TDS or lower TCS shall be applicable for the amount credited/debited during the FY 2019-20 after the date of making of application u/s 195,197 or 206C(9) but remained unpaid or not received till the date of issuance of the certificate by the Assessing Officer,” it added.