New Delhi: To mitigate the hardships to taxpayers, Central Board of Direct Taxes (CBDT) on Thursday provided clarification on orders under Section 119 of the Income-Tax Act, 1961 issued relating to the issue of certificates for lower deduction/collection of TDS/TCS.
With regard to the issue of the validity period of lower/nil deduction/collection certificates of Financial Year 2019-20, CBDT stated, "For the purpose of Para 2 (a) and 2 (b) of the order dated March 31, the lower/nil deduction/ collection certificates will be valid for the particular period for which these were issued for FY 2019-20 and also for further period from April 1 to June 30 for FY 2020-21 subject to conditions as mentioned in the order dated March 31.
It stated that threshold/transaction limit mentioned in lower/nil deduction/collection certificate issued for FY 2019-20 will be taken fresh for period from April 1 to June 30 for FY 2020-21 and the amount of threshold limit will be the same as was assigned for these certificates for FY 2019-20.
"Official emails or other electronic communication may be used by field authorities of Income Tax Department for internal approval for issue of lower/nil deduction/collection certificates and for communication of the same.