F. No. CPC(TDS)/ 197 Certificate/Annex-11/2023-24
Government of India
Ministry of Finance
Central Board of Direct Taxes
Directorate of Income-tax (Systems)
New Delhi
Notification No.02/2023
New Delhi, the 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 ofIncome-tax under sub-section (I) of section
197 of the Income-tax Act, 1961 through TRACES-reg.
1.
As per sub-section (I) 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, 1940, 194G, 194H, 194-1, 194J, 194K,
194LA, [194L8A]' 194L88, 194L8C, 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 (I) 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
1
F, No, CPC(TDS)/ 197 Certificate/Annex-11/2023-24
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,
5. Procedure for electronic filling of Form 13 with annexure-II shall be as
follows:
5.1
For making an application in Form 13 with Annexure II the tax-
payerjDeductee shall login into the TRACES website (www,tdscpc,gov.in), 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 Income-
tax Act, 1961.
5.2
The tax-payer jDeductee who is not registered at TRACES website shall
have to first register with his Permanent Account Number ("PAW) at TRACES
(www,tdscpc,gov.in) for login and filling application in Form 13 along-with
Annexure II, Detailed procedure for registration can be accessed through the
link
https:llcontents, tdscpc,gov.inl en I taxpayer-registration-Iogin-
etutorial.html
5.3
The
tax-payerjDeductee
shall
login
at
TRACES
website
(www,tdscpc.gov.in) and submit the Form No. 13 along-with Annexure II with
supporting documents using any of the following,
2
F. No. CPC(TDS)/ 197 Certificate/Annex-11/2023-24
(i)
Digital Signature,
(ii)
Electronic Verification Code,
(iii)
Aadhar based Au thentication,
(iv)
Mobile OTP.
5.4
Applicants accessing TRACES website from outside of India shall login
at TRACES website (www.nriservices.tdscpc.gov.in) and submit application in
Form No. 13 along with supporting documents using Digital Signature only.
5.5
The applicant can track the status of the application through option
'Track Request for Form13/ lSC/ lSD' under the tab ·Statements/Forms'.
6. Procedure for assignment of application to the TDS Assessing Officer
(AO):
6.1
The application will be assigned to the TDS AO on the basis of details
furnished by the applicant in Form 13. Such applications can be accessed by
the AO through the path 'AO Loqin->LowerINo Deduction Certificate->
Generate Certificate->Certificate ul s 197f111206C (9)-> Open Request (5)'.
6.2
For application filed in Delhi, Mumbai, Chennai, Kolkata, Bangalore,
Hyderabad, Ahmedabad and Pune, cases where revenue forgone exceeds a
sum of Rs. 50 Lakh, the applications shall be assigned to the DCIT / ACIT
exercising jurisdiction over TDS matters, and in other cases, the applications
shall be assigned to the ITO exercising jurisdiction over TDS matters. If the
jurisdiction orders are otherwise, the applications shall be assigned in
accordance to such jurisdiction orders.
6 .3
For application filed in remaining cities/townsfjurisdictions, the
application where revenue foregone exceeds a sum of Rs. 10 Lakh, application
shall be assigned to the DCIT / ACIT exercising jurisdiction over TDS matters,
and in other cases, the applications shall be assigned to the ITO exercising
jurisdiction over TDS matters. If the jurisdiction orders are otherwise, the
applications shall be assigned in accordance to such jurisdiction orders.
6.4
Once the application in form 13 has been successfully submitted, the
following data will be obtained by CPC-TDS:
3
6.5
F. No. CPC(TDS)/ 197 Certificate/Annex-11/2023-24
(i)
Processed dat~ of Income Tax Returns of previous 4 financial years (if
available) .
(ii)
PAN Demand.
(iii)
E-filed Income-Tax Returns of previous 4 fmancial years.
(iv)
Audit Report (along with form 3CD if accounts are audited) of previous
4 financial years.
(v)
Assessment Orders of previous 4 financial years (if available).
The applications shall be assigned to the TDS AO exercising jurisdiction
over TDS matters in respect of the applicant as explained in para 6.2 and 6.3.
However, if the jurisdiction orders are otherwise, the assigned AO can transfer
the applications to the AO concerned on AO Portal.
7 Processing of the tax-payer /Deductee's request by the AO, Range Heads
and Commissioners of Income-tax:
7.1
Role of AO:
The AO shall process the application through TRACES-AO Portal after login
using his/her credentials.
7.1.1
By
navigating
through
the
Certiticate>Generate Certiticate> Certificate
path
'LowerlNo
Deduction
us/197(1 V206C (9) and select
'Open Request (s)', the AO shall be able to access following information:
(i)
Information furnished by the tax-payer /Deductee.
(ii)
Documents submitted by the tax-payer /Deductee.
(iii)
Information essential for processing the request in respect of the tax-
payer/Deductee, as received from other modules.
(iv)
Information essential for processing the request in respect of the tax-
payer/Deductee, as available at CPC(TDS).
(v)
Information about the history of previous TAN less certificate issued to
the applicant where the number of deductors who consumed the said
certificate did not reach up to 100 during the last financial year, if
available.
4
,
