59 Direct Tax Instruction No. 4, dated 25-5-2010 — F.No.
275/23/2007-IT(B) — Certificate of lower deduction for non-deduction of tax at
source u/s.197 of the Income-tax Act — matter reg.
1. I am directed to bring to your notice on the subject of
issue of certificates u/s.197 that by Instruction No. 8/2006, dated 13-10-2006,
it was laid down that certificates for lower deduction or nil deduction of tax
at source u/s.197 are not to be issued indiscriminately and for issue of each
certificate, prior administrative approval of the concerned Range Head shall be
obtained by the AO. Subsequently, Instruction No. 7/2009, dated 23-12-2009 read
with letter F.No.275/23/2007-IT(B) dated 8-2-2010 has laid down monetary limits
for prior administrative approval of the CIT-TDS or DIT-Intl. Taxation, as the
case may be. Such certificates are normally being issued at present manually
rather than through the ITD system.
2. To maintain centralised data of issue of such certificates
and facilitate better processing of the TDS returns filed by the deductors and
in continuation to the above instructions, I am directed to communicate that
henceforth w.e.f. . . . . . . . the certificates u/s.197 shall be generated and
issued by the AO mandatorily through ITD system only.
3. In case due to certain reasons, it is not possible to
generate the certificate through the system on the date of its issue, the AO
shall upload the necessary data on the system within 7 days of the date of issue
(manually) of the certificate.
4. The manner of issue of certificate u/s.197 through the
system, uploading of data in situation covered in para 3 above and the prior
administrative approval by the Range Head and by the CIT-TDS/DIT-Intl. Taxation
is given in the enclosed Annexure for guidance of all concerned.
5. The content of the above Instruction may be brought to the
notice of all officers working in your charge for strict compliance.
Hindi version will follow.
Sd/-
Tajbir Singh
Under Secretary (Budget)
Annexure—Note for issue of certificate u/s.197 mandatorily
through the system – uploaded on website viz.
www.bcasonline.org
