Income Tax Returns | CA in Mumbai | Chartered Accountant | ITR Filing

Easy Steps for getting Lower Withholding certificate India 2021

How you can apply for a Nil Tax Certificate or Lower Withholding certificate in India? We will discuss the Easy Steps for getting Lower Withholding certificate India 2021. When a taxpayer believes that its total income justifies withholding of tax at a lower rate, it can apply to the assessing officer for a  certificate of withholding tax at a lower rate also known as Nil Tax certificate. The application by the taxpayer to the AO for a certificate of withholding tax at a lower rate is governed by Rule 28AA of the Income-tax Rules, 1962 (the Rules).

Procedure for filing application for lower deduction certificate u/s 197 of income tax act ,1961

Steps for Registration on TRACES

  • Visit the site https://contents.tdscpc.gov.in/;
  • Click on Login and select Register as New User option;
  • Select ‘Taxpayer’ from the drop-down list;
  • After selecting Proceed, the registration form would be displayed;
  • Fill in the appropriate information and submit and the registration in TRACES would be done.

Steps for filing Form 13 post registration on TRACES

  • Login in TRACES and under ‘My Profile Tab’, register DSC of the authorized person;
  • Under ‘Statements / Form’ tab select ‘Request for Form 13’.
  • Form 13 would be displayed and the following appropriate details need to be filled up by the applicant -
  • Basic details of the Company and authorized person registered on TRACES portal (The same shall be auto-populated)
  • Details of existing liability under Income-Tax Act;
  • TAN wise details of estimated income/amount to be received from parties during the subject year (for e.g. FY 2019-20) along with relevant section of TDS (e.g. Section 194C, Section 194J etc.);
  • Requested rate of TDS proposed by the taxpayer in respect of the estimated income;
  • Details of projected income of the subject year (for e.g. FY 2019-20) and immediately preceding financial year (FY 2018-19);
  • Details of estimated tax computation of the subject year (for e.g. FY 2019-20) and immediately preceding financial year (FY 2018-19).
  • Further, supporting documents are required to be uploaded which include:
  • Final Assessment orders for last 4 assessment years;
  • Details/workings for estimated income and tax computation (self attested by authorized person) ;
  • Audited Financial Statements of last 3 years;
  • Projected Balance Sheet & P/L income of the subject year (for e.g. FY 2019-20) and immediately preceding financial year (FY 2018-19) (self attested by authorized person).
  • Acknowledged copy(s) of TDS returns filed for last 2 financial years.
  • Once all the details are filled up and appropriate documents are uploaded, the applicant is required to submit the Form 13.

Post submission of Form 13

  • The online Form 13 is processed and is reviewed by the AO;
  • The AO reviews the details and documents and asks for clarifications, if any;
  • Post AO approval, the application is forwarded to Addl CIT for his approval;
  • Post approval by Addnl CIT, the application is sent to CIT for review and final approval
  • Post approval by CIT, the application is successfully completed and the process for generation of lower withholding certificated is initiated;
  • Once Lower Withholding certificate is generated, the same can be downloaded from TRACES portal.
 
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