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TMI BlogCOLLECTION OF INCOME TAX AT LOWER RATE OR ‘NIL’ RATEX X X X Extracts X X X X X X X X Extracts X X X X ..... COLLECTION OF INCOME TAX AT LOWER RATE OR ‘NIL’ RATE X X X X Extracts X X X X X X X X Extracts X X X X ..... 961 ('Act' for short) provides that where the Assessing Officer is satisfied that the total income of the buyer or licensee or lessee justifies the collection of the tax at any lower rate than the relevant rate specified in sub-section (1), sub-section (1C) or sub-section (1H), the Assessing Officer shall, on an application made by the buyer or licensee or lessee in this behalf, given to him a certificate for collection of tax at such lower rate than the relevant rate. Rule 37G provides that an application by the buyer or licensee or lessee for a certificate under section 206C (9) shall be made in Form No. 13 electronically, - (i) under digital signature; or (ii) through electronic verification code. Form No. 13 This form can be used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the TCS at a lower rate. The form is addressed to the jurisdictional Assessing Officer. The particulars of the income of the assessee and his personal details are to be furnished. Further the following details are to be furnished- * Assessment year; * Liability under the Act- * Amount payable in respect of advance tax; * Amount payable for self-assessment tax; * Amount for which notice of demand under section 156 has been served but not paid; * Amount payable as deductor or collector which had become due but not paid; * Previous year to which the payments/receipts relate; * Estimated total income of the previous year referred to in; * Total tax including interest payable for the total income; * Details of income cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imed to be exempt and not included in the total income; * Details of payment of advance-tax and tax deducted/collected, if any, for the previous year; * Whether exemption under section 10, section 11 or section 12 is claimed (Yes/No) (If yes, registration/exemption certificate/approval, if any, issued by the Income-tax Authority is to be uploaded); * Where return of income for any of the four previous years preceding to the previous year has not been filed, a computation of estimated total income of the previous year for which return of income has not been filed is to be uploaded; * Where return of income for any of the four previous years has been filed in paper form, please upload the copy of such returns; and * Declaration. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition to the above, Annexure - I and Annexure - II are to be filled in. In Annexure I the particulars in respect of the income/sum for which the certificate is sought are to be furnished- * TAN No. and PAN No. or Aadhaar No. of the deductor; * Section under which tax is to be deducted; * Estimated amount of income/sums to be received; * Requested rate of deduction. The following particulars are to be furnished in Annexure - II- * Section under which tax at source is to be deducted; * Estimated amount of income/ sum to be received; * Requested rate of Deduction. A note justifying the issue of certificate shall be uploaded along with the application. Tax collection account number Section 206CA of the Act provides that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... person who collects tax at source shall apply to the Assessing Officer for the allotment of a tax-collection account number. The said number shall be quoted in all challans, certificate, returns etc. With effect from 01.10.2004 this procedure is dispensed with. After that there is no requirement to get Tax collection account number. Furnishing of PAN Number Section 206 CC of the Act requires a person to provide his PAN number to the deductee; otherwise, the tax will be collected at a higher rate. No TCS certificate will be granted unless the PAN is not furnished to the collector. This shall not apply to a non-resident who does not have permanent establishment in India. Processing of statements Where a statement of tax collection at sour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or a correction statement has been made by a person collecting any sum, such statement shall be processed in the following manner- * the sums collectible under this Chapter shall be computed after making the following adjustments, - * any arithmetical error in the statement; * an incorrect claim, apparent from any information in the statement; * the interest, if any; * The fee, if any; The estimating and the estimated liability of tax hall be determined by the Assessing Officer after taking into consideration the following- * tax payable on estimated income of the previous year relevant to the assessment year; * tax payable on the assessed or returned or estimated income, as the case may be, of the last four previous years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; * existing liability under the Act and Wealth Tax Act; * 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. Intimation An intimation shall be prepared or generated and sent to the collector specifying the sum determined to be payable by, or the amount of refund due to, him. No intimation under this sub-section shall be sent after the expiry of the period of one year from the end of the financial year in which the statement is filed. Certificate Rule 37H provides that where the Assessing Officer, on an application made by a person is satisfied that existing and estimated tax liability of a person justifies the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llection of tax at lower rate, the Assessing Officer shall issue a for collection of tax at such lower rate. The above certificate 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. The certificate shall be valid only for the person named therein. 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. Payment of tax Any amount collected in accordance with the provisions of this section and paid to the credit of the Central Government shall be deemed to be a payment of tax on behalf of the person from whom t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount has been collected and credit shall be given to such person or any other person eligible for credit for the amount so collected in a particular assessment year in accordance with the rules as may be prescribed by the Board from time to time. 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