Application for Lower Tax Withholding Certificate: COVID-19 Waiver

Due to outbreak of the pandemic Covid-19 virus, there are severe disruptions in the normal working of almost all sectors, including functioning of the Income Tax department. Keeping in mind the above situation, assessing officers were not able to attend the applications made by the assessees for lower deduction certificates (LDC), accordingly CBDT has come up with clarification on 31.03.2020 for pending and fresh applications for LDC. We have compiled the gist of the clarifications in certain cases, as below:

Clarification on Validity of existing certificates

Case# Nature of Transactions In possession of LDC for
FY 2019-20
Application filed for LDC
FY 2020-21
Clarification
Case -I Payments to Residents Yes Filed but pending to be disposed off. LDC for FY 2019-20 shall be

VALID till 30.06.2020, or

till the time application is disposed by assessing officer.

Case -II Payments to Residents Yes Not Filed LDC for FY 2019-20 shall be

VALID till 30.06.2020.
However, fresh application via e-mail to be made.

Case -III Payments to Residents No Not Filed Application to be filed via e-mail duly in Form-13 accompanied by annexures notified.
Case -IV Payments to Non- Residents not covered by Case-I and Case-II above. NA Filed but pending to be disposed off. Tax to be deducted at the rate of 10% including surcharge and cess, on payments till 30.06.2020 of F.Y. 2020-21.

New Mechanism of Application for Lower/Non deduction Certificate via E-MAIL:

The applicant shall apply for LDC u/s 197/206C(9) of the Act through an email addressing to assessing officer concerned. Following documents shall be enclosed with the email:

  • Duly filled form 13 (Annexure I and /or Annexure II)
  • The documents/information as required to be uploaded on TDS-CPC website while filling up Form 13.
  • Projected Balance sheet and P&L account of FY 2020-21
  • Provisional Balance sheet and P&L account of FY 2019-20
  • Balance sheet and P&L account of FY 2018-19
  • Form 26AS for FY 2019-20 & 2018-19
  • ITR Pertaining to FY 2018-19

Source: CBDT Notification No. F.No.275/25/2020-IT(B)