Rule 37H - Certificate for collection of tax at lower rates from buyer under sub-section (9) of section 206C - Income-tax Rules, 1962

Certificate for collection of tax at lower rates from buyer under sub-section (9) of section 206C . 37H. 1 [ (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 . ] (2) The certificate given under sub-rule (1) shall be valid for the assessment year specified in that certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period. (3) An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate given under sub-rule (1). (4) The certificate shall be valid only for the person named therein. (5) The certificate shall be issued direct to the person responsible for collecting the tax under advice to the buyer who made an application for issue of such certificate. 2 [ (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. ] ******* Notes 1. Substituted vide Notification No. 74/2018 dated 25-10-2018 before it was read as (1) Where the Assessing Officer is satisfied that the total income of the buyer or licensee or lessee justifies the collection of tax at any lower rate than the relevant rate specified in sub-section (1) or sub-section (1C) of section 206C, he shall, on an application made by the buyer or licensee or lessee under rule 37G, give to him a certificate for collection of tax at such lower rate than the relevant rate specified in sub-section (1) or sub-section (1C) of that section. 2 . Inserted vide Notification No. 74/2018 dated 25-10-2018