The Central Board of Direct Taxes ( CBDT ) has made amendments to the Income Tax Rules, 1962 mandating that the certificate for the Deduction/ Collection at Source of tax at lower rate shall be filed electronically by using Digital Signature or electronic verification code.
The Income Tax Rules, 1962 prescribe Form No.13 for filing an application for seeking a certificate under Section 197 and/or under Section 206C (9) of the Income Tax Act, 1961, for no deduction of tax or deduction/collection of tax at lower rate.
In order to rationalize and make the process of issuance of the certificate for no deduction of tax or deduction/collection of tax at lower rate electronic, the existing Form No.13 and relevant I.T. Rules are amended. This is vital for minimizing the human interface and reducing the compliance burden on the applicant.
The amended rules mandated that the certificate for deduction of tax at any lower rates or no deduction of tax, as the case may be, shall be issued directly to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate. If the number of persons responsible for deducting the tax is likely to exceed one hundred and the details of such persons are not available at the time of making application with the person making such application, the certificate for deduction of tax at lower rate may be issued to the person who made an application for issue of such certificate, authorizing him to receive income or sum after deduction of tax at lower rate.
