Categories: NRI

How to make Application for NIL/Lower deduction certificate

How to make the Application for NIL/Lower deduction certificate 

  • Form No. 13 can be used to submit an application for the issuance of a Nil or Lower TDS certificate. Such a form may be submitted electronically using an electronic verification code or a digital signature. To apply for this certificate, you must have PAN.

Modified procedure:  

  • Those taxpayers who have not filed for lower or Nil Tax Deducted at Source/ Tax collected at Source certificate in the TRACES portal and who do not have a certificate for Financial Year 2019-20, are required to make an application as per the modified procedure.
  • Lower/ NIL deduction certificate U/s 197/206C(9) applicant shall apply of vide E-MAIL addressed to the concerned AO. The Email shall contain data/documents as under and the modified procedure for application under sections 197/206C(9) is briefly stated below:
    • Complete file Form 13
    • Copy of Income-tax Form 26AS for Financial Year  & Financial Year
    • Income tax return for Financial Year
    • Estimated BS and Profit and loss for Financial Year
    • BS and Profit and loss(Provisional) for Financial Year
    • Copy of Audited financials for Financial Year
    • The information/documents as needed to be submitted on TRACES portal while filling up Form 13 (all the TAN wise information of estimated Gross revenue, Normal Tax computation for past four YR’s, details of income claimed to be exempted in estimated financials, Income tax assessment order for past four YRs)
  • The present process for doing applications U/s 195(2) & 195(3) will make the application except that such applications need to be made through email to the relevant Assessing Officer. The certificates under the said above sections will be issued by email mode.

Issuance/Grant of Certificate by Assessing Officer

  • The Lower TDS certificate shall be granted up to 30/06/2020 or any other date (earlier than 30/06/2020) as specified by the Assessing Officer. The Certificate issued by Assessing Officer through email shall contain the below details:
Serial Number TAN of deductor PAN of deductee FY Section The estimated amount of Income The applicable rate of deduction/ collection Valid from date Valid to date
  • The grant/issuance of a Lower deduction certificate shall be provided to the applicant who shall share the same with the collector/ deductor.
  • In case lower TDS is to be deducted and a certificate is issued in compliance with Section 197, the order of the Assessing Officer shall deduct the lower or lower TDS.
  • Assessing Officer of different State can’t issue notice just because income tax Assessee applied for lower Tax Deducted at Source mentioning address of that State: Honorable High Court.


Which income tax forms is required for NIL / lower deduction of Tax Deducted at Source?

  • An application for Lower deduction of Tax Deducted at Source or Nil TDS deduction is needed to be submit in income tax Form 13 to the ITO, &  AO or Tax officer on being satisfied that NIL / lower deduction of Tax Deducted at Source is justified then AO shall issue a NIL / lower deduction of Tax Deducted at Source certificate for the same U/s 197 of income Tax Act.

Which Income tax form is needed for non-deduction of Tax Deducted at Source?

  • Income taxpayers can file Form 15H or Form 15G to apply that no Tax Deducted at Source be deducted since tax on taxpayers total income is nil. Form 15H and Form 15G both are income tax self-declaration forms that taxpayers have to file to bank when taxpayers open a fixed deposit account. While income tax Form 15G is for those who are not attend the 60 years & come under HUF, Income tax Form 15H is for all Income taxpayers who is 60 years & above. What case Form 15G & Form 15H are needed to be file?
    • Income from Corporate Bonds
    • Income from LIC Policies
    • EPF Withdrawal
    • Income from Post Office Deposits
    • Revenue from Rent

NRI compliance & Taxation solution provider in India

  • An Non-Resident Indian has to remit proceeds of property purchase outside India (from Non-Resident Ordinary to Non-Residential External). The Tax Deducted at Source was deducted at lower rates as per certificate U/s 197. For that purpose lower rates as per certificate U/s 197 is required, Moreover that Usually Bank is asking for income tax Form 15CB and form 15CA, Normally NRI asking advice a few queries with reference to following question like : –
    1. Nation to which remittance is made (to be mentioned as India as the Non-Residential External account is in India?)
    2. Amount payable in foreign currency (to be mentioned in Rs.?)
    3. Relevant purpose code as per Reserve Bank India? – is it a capital account transaction?
    4. Tax Deducted at Source amount to be mentioned same as was deducted on sale of property? – or this needs to be shown as normal?
    5. Rate of Tax Deducted at Source as per Income Tax is to be mentioned as lower rate or normal rate ?
  • We provide solution for all the Question of NRI’s,  Rajput Jain and Associates Chartered Accountants firm welcome all the Non-Resident Indian’s, RJA is leading NRI compliance & Taxation solution provider in India / Delhi. As a non-resident Indian (NRI), it is essential to understand tax implications in India. Rajput Jain and Associates CA firm have been providing Non-Resident Indian tax consultancy services for over last 15 years, with a focus on delivering personalised solutions for all the our NRI’s clients.
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

Recent Posts

Setting Up A Business With 100% EOUs along with FDI

Setting Up A Business With 100% Export Oriented Units (EOUs) along with FDI Foreign investors must first assess their entry… Read More

4 days ago

Taxation of Share Transaction & Disclosing F&O Income

Important Points for Taxation of Share Transaction &  Disclosing F&O Income The income from these transactions should be reported under… Read More

5 days ago

International Financial Services Centre in GIFT City

Overview on International Financial Services Centre in GIFT City An International Financial Services Centre (IFSC) is a jurisdiction that caters… Read More

1 week ago

Mandatory ITR Filing regardless the Level of Income

Why you should file ITR even if your income is less than INR 2.5 Lakhs ? While it may not… Read More

2 weeks ago

Filling of Form No. 67 for Availing FTC is directory Nature

Form No. 67 filling for availing Foreign Tax Credit is a directory nature & not Compulsory. In Matter of Ms.… Read More

2 weeks ago

Overview on ITR Reporting of Foreign Equity/Debt Investments

Guidance on ITR Reporting of Foreign Equity/Debt Investments When filing your Income Tax return in India, it is essential to… Read More

2 weeks ago
Call Us Enquire Now