CBDT notified the procedure for granting of lower or nil withholding of tax certificate under section 197
CBDT vide Notification No.2/2023 dated 27 September 2023 provided the procedure for granting of Lower/ Nil witholding certificate under section 197 through TRACES portal.
Rule 28 deals with application of Form 13 for lower/Nil witholding certificate and proviso to Rule 28AA(4) provides for issuance of certificate for lower deduction certificate in case number of deductors exceed 100 in number and details of such deductors are not available at the time of making the application.
In this regard the procedure applicable from 01 October 2023 is provided in the above notification.
It even mentions that due to the fact that the deductors are not identifiable at the time of making the application, therefore the certificate limit is not prescribed for each deductor, in this regard, the certificate shall be utilised on FIFO basis and the deductors shall verify the consumption status before furnishing the certificate in the TDS Return.
The copy of the order as under: