CBDT notifies procedure for filing of application in Form 15C/15D for grant of nil TDS certificate u/s 195
Notification no. 1/2023, dated 29-03-2023
Section 195(3) of the Income-tax Act provides for the grant of a certificate to a person entitled to receive interest or other sums without deduction of tax at source.
As per Rule 29B, the following persons, entitled to receive any interest or other sum on which tax is deductible under this provision, may make an application for obtaining a certificate for deduction of tax at nil rate:
a) A banking company or an insurer in Form no. 15C; and
b) Any other person who carries on business or profession in India through a branch in Form no. 15D.
In the exercise of the power delegated by the Central Board of Direct Taxes (CBDT) under Rule 131, the Director General of Income-tax (Systems) has prescribed procedure, format and standard for filing Form 15C and Form 15D. A few of such procedures are as follows:
a) Form no. 15C and Form no. 15D to be furnished electronically at the TRACES website along with supporting documents using any of the following:
- Digital Signature,
- Electronic Verification Code,
- Aadhaar based authentication,
- Mobile OTP.
b) Applicants accessing TRACES from outside India shall submit the application along with supporting documents using a digital signature only.
c) The application will be assigned to TDS AO in the International Taxation charges. AO can process the application through TRACES and can obtain the following data from CPC(TDS):
- Processed data of Income Tax Returns of previous 6 financial years (if available),
- PAN demand,
- E-filed Income-Tax Returns of previous 6 financial years,
- Audit Report / Form 3CD (if applicable) of the previous 6 financial years,
- Assessment Orders of previous 6 financial years (if available).
d) By default, the applications shall be assigned to the DClT/ACIT (Intl. Taxn.) exercising jurisdiction over TDS matters. However, if the jurisdiction orders are otherwise, the assigned AO can transfer the applications to the AO concerned on AO Portal.
e) AO shall approve/reject the application based on the parameters defined in rule 29B and any other instructions/guidelines in this regard.