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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 25th October, 2018
G.S.R. 1068(E).—In exercise of the powers conferred by sections 197 and 206C read with section
295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following
rules further to amend the Income-tax Rules, 1962, namely:—
1. Short title and commencement,__ (1) These rules may be called the Income–tax (Eleventh Amendment)
Rules, 2018.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962,-
(I) for rule 28, the following rule shall be substituted, namely: __
“Application for grant of certificates for deduction of income-tax at any lower rates or no
deduction of income-tax.
28. (1) An application by a person for grant of a certificate for the deduction of income-tax at any lower rates
or no deduction of income-tax, as the case may be, under sub-section (1) of section 197 shall be made in Form
No. 13 electronically, ___
(i)
under digital signature; or
(ii)
through electronic verification code.
(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems),
as the case may be, shall lay down procedures, formats and standards for ensuring secure capture and
transmission of data and uploading of documents and the Principal Director General of Income-tax (Systems)
or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing
appropriate security, archival and retrieval policies in relation to the furnishing of Form No.13.”;
(II) in rule 28AA, __
(A) in sub-rule (2), __
(a) in clause (ii), for the words “income, as the case may be, of the last three”, the words “or estimated
income, as the case may be, of last four” shall be substituted;
(b) in clause (iv), after the word “payment”, the words “, tax deducted at source and tax collected at
source” shall be inserted;
(c) clause (v) and clause (vi) shall be omitted;
(B) for sub-rule (4), sub-rule (5) and sub-rule (6), the following sub-rules shall, respectively, be substituted,
namely:__
“(4) The certificate for deduction of tax at any lower rates or no deduction of tax, as the case may be, shall be
issued direct to the person responsible for deducting the tax under advice to the person who made an
application for issue of such certificate:
Provided that 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, the certificate for deduction of tax at lower rate may be issued to the person who made an
application for issue of such certificate, authorising him to receive income or sum after deduction of tax at
lower rate.
(5) The certificates referred to in sub-rule (4) shall be valid only with regard to the person responsible for
deducting the tax and named therein and certificate referred to in proviso to the sub-rule (4) shall be valid with
regard to the person who made an application for issue of such certificate.
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(6) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems),
as the case may be, shall lay down procedures, formats and standards for issuance of certificates under sub-
rule (4) and proviso thereto and the Principal Director General of Income-tax (Systems) or the Director
General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate
security, archival and retrieval policies in relation to the issuance of said certificate.”;
(III) in rule 28AB, __
(A) in sub-rule (2), __
(a) in clause (i), the word “and” shall be inserted at the end;
(b) in clause (ii), the words “and” occurring at the end shall be omitted;
(c) clause (iii) shall be omitted.
(IV) for rule 37G, the following rule shall be substituted, namely: __
“Application for certificate for collection of tax at lower rates under sub-section (9) of section 206C
37G. (1) An application by the buyer or licensee or lessee for a certificate under sub-section (9) of section
206C shall be made in Form No. 13 electronically, -
(i) under digital signature; or
(ii) through electronic verification code.
(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems),
as the case may be, shall lay down procedures, formats and standards for ensuring secure capture and
transmission of data and uploading of documents and the Principal Director General of Income-tax (Systems)
or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing
appropriate security, archival and retrieval policies in relation to the furnishing of Form No.13” ;
(V) in rule 37H, __
(a) for sub-rule (1), the following sub-rules shall be substituted, namely:-
“(1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 37G is
satisfied that existing and estimated tax liability of a person justifies the collection of tax at lower rate, the
Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (9) of section
206C for collection of tax at such lower rate;
(1A) The existing and estimated tax liability referred to in sub-rule (1) shall be determined by the Assessing
Officer after taking into consideration the following, namely: __
(i)
tax payable on estimated income of the previous year relevant to the assessment year;
(ii)
tax payable on the assessed or returned or estimated income, as the case may be, of the last four
previous years;
(iii)
existing liability under the Act and the Wealth-tax Act, 1957 (27 of 1957);
(iv)
advance tax payment, tax deducted at source and tax collected at source for the relevant
assessment year relevant to the previous year till the date of making application under sub-rule (1)
of rule 37G.”;
(b) after sub-rule (5), the following sub-rule shall be inserted, namely : __
“(6) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall lay down procedures, formats and standards for issuance of certificate
under sub-rule (5) and the Principal Director General of Income-tax (Systems) or the Director General of
Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival
and retrieval policies in relation to the issuance of said certificate.”;
(VI) in Appendix II, for Form No.13, the following shall be substituted, namely:__
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
“FORM No. 13
[See rules 28 and 37G]
Application by a person for a certificate under section 197
and/or sub-section (9) of section 206C of the Income-tax Act, 1961, for no
deduction of tax or deduction or
collection of tax at a lower rate
To
The Assessing Officer,
1. I, ______________________________________________of_____________________ do, hereby, request
that a certificate may be issued to the person responsible for paying me the incomes/sum, authorising him,
not to deduct/deduct income-tax at lower rate, at the time of payment of such income/sum to me. The
details are specified in Annexure-I.
and/or
I, _____________________________________________of ____________________do, hereby, request
that a certificate may be issued to me for receiving the incomes/sum:-
(i) after deduction of income-tax at lower rate as I do not have the details of the person making payments
and their number is likely to exceed______.
(ii) without deduction of income-tax as this application is made for the person/entity specified in rule 28AB.
The details are specified in Annexure-II.
and/or
I,____________________________________________ of _______________________ do, hereby,
request that a certificate may be issued to the Seller/Lessor/Licensor, authorising him to collect income-
tax at lower rate at the time of debit of such amount to my account or receipt thereof from me, as the case
may be. The details are specified in Annexure-III.
2. The particulars of my income and other relevant details are as under :
(i) Status
(State whether individual, Hindu undivided family, firm, body
of individuals, company etc.)
