I am directed to state that
Instruction No. 8/2006, dated 13-10-2006 was issued by the Board making it
mandatory to get prior administrative approval of the Additional Commissioner of
Income-tax/Joint Commissioner of Income-tax before issue of any certificate of
lower deduction of tax at source u/s.197 of the Income-tax Act, 1961. Further,
Instruction No. 7/2009, dated 23-12-2009 was issued communicating prior
administrative approval of the Commissioner of Income-tax (TDS) in the cases
where the cumulative amount of tax foregone by non-deduction/lesser rate of
deduction of tax arising out of certificate u/s.197 during the financial year
for a particular assessee exceeds Rupees fifty lakh in major stations and Rupees
ten lakh for other stations.
2. For effective monitoring
and control of tax foregone through certificate of lower tax collection at
source (TCS), I am directed to communicate that for issue of certificate of
lower collection for tax at source u/s.206C(9), prior administrative approval of
the Additional Commissioner of Income-tax/Joint Commissioner of Income-tax shall
be obtained in each case. Further, prior administrative approval of the
Commissioner of Income-tax (TDS) shall be taken where cumulative amount of tax
foregone by lesser rate of tax collection at source during the financial year
for a particular buyer or licensee or lessee, as the case may be, exceeds Rupees
fifty lakh in Delhi, Mumbai, Chennai, Kolkata, Bangaluru, Hyderabad, Ahmedabad
and Pune Stations and Rupees ten lakh for other stations. Once the Addl. CIT/JCIT
or the CIT(TDS), as the case may be, gives administrative approval of the above,
a copy of it has to be endorsed to the jurisdictional CIT also.
3. In relation to TCS
matters of a buyer or licensee or lessee falling within the jurisdiction of
Directorate of Income-tax (International Taxation), the powers indicated above
shall be vested in the officers concerned i.e., Range Additional DIT/JDIT
(International Taxation) or Director of Income-tax (International Taxation), as
the case may be.
4. ‘Tax foregone’ in case of
a buyer or licensee or lessee, as the case may be, should ordinarily mean
difference between taxes computed at the relevant rate of collection stipulated
and the tax computed on the basis of rate at which the certificate u/s.206C(9)
is sought to be issued.
5. The content of this
instruction may be brought to the notice of all officers working in your charge
for strict compliance.
6. Hindi version will
follow.
F. No. 275/23/2007-IT(B) (Ajay
Kumar)
Director (Budget)
