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TMI BlogDeduction of tax at source - Instructions for issue of certificate u/s 197 mandatorily through ITD system - Section 197 of the Income-tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... istrative approval of the concerned Range Head shall be obtained by the AO. Subsequently, Instruction No. 7/2009, dated 22/12/2009 read with letter F.No.275/23/2007-IT(B), dated 8/02/2010 has laid down monetary limits for prior administrative approval of the CIT-TDS or DIT-Intl. Taxation, as the case may be. Such certificates are normally being issued at present, manually rather than through the ITD system. 2. To maintain centralized data of issue of such certificates and facilitate better processing of the TDS returns filed by the deductors and in continuation to the above instructions, I am directed to communicate that henceforth w.e.f………….the certificates u/s 197 shall be generated and issued by the AO mandatorily through ITD syste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment received from banks etc. and defaults, if any, are generated. The defaults are mainly non-deduction (including short deduction), non-payment of tax deducted (including part payment) and interest for default or delayed payment. 3. Sec 197 of the IT Act, 1961 provides for issue of certificate for no deduction or deduction of tax at lower rate if the Assessing Officer is satisfied that the issue of such certificate is justified in view of total income of the recipient. Till FY 09-10 the certificates u/s 197 were being issued manually by the concerned Assessing Officer. The present system of issuance of 197 certificates suffers from the following deficiencies: * There is no check as to whether such certificate has been issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iddle of FY 09-10, facility was provided in the TDS module of ITD system to generate certificates Under section u/s 197 through the system. 6. Some of the benefit of issue of certificate u/s 197 through the system would be that: * Entire information about the deductor and deductee, nature of payment (related section), the lower rate authorized, dates of validity of certificate and quantum of payment would he available to the department in the system. * Element of reconciliation on part of deductors and regulation in the case of field officers (so far as issuance of the certificates is concerned) would be introduced. * The information (as above) can he used while processing the TDS returns and matching the data provided by the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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