Procedure for filing application for lower deduction certificate u/s 197 of income tax act ,1961
Steps for Registration on TRACES
Visit the site https://contents.tdscpc.gov.in/;
Click on Login and select Register as New User option;
Select ‘Taxpayer’ from the drop-down list;
After selecting Proceed, the registration form would be displayed;
Fill in the appropriate information and submit and the registration in TRACES would be done.
Steps for filing Form 13 post registration on TRACES
Login in TRACES and under ‘My Profile Tab’, register DSC of the authorized person;
Under ‘Statements / Form’ tab select ‘Request for Form 13’.
Form 13 would be displayed and the following appropriate details need to be filled up by the applicant -
Basic details of the Company and authorized person registered on TRACES portal (The same shall be auto-populated)
Details of existing liability under Income-Tax Act;
TAN wise details of estimated income/amount to be received from parties during the subject year (for e.g. FY 2019-20) along with relevant section of TDS (e.g. Section 194C, Section 194J etc.);
Requested rate of TDS proposed by the taxpayer in respect of the estimated income;
Details of projected income of the subject year (for e.g. FY 2019-20) and immediately preceding financial year (FY 2018-19);
Details of estimated tax computation of the subject year (for e.g. FY 2019-20) and immediately preceding financial year (FY 2018-19).
Further, supporting documents are required to be uploaded which include:
Final Assessment orders for last 4 assessment years;
Details/workings for estimated income and tax computation (self attested by authorized person) ;
Audited Financial Statements of last 3 years;
Projected Balance Sheet & P/L income of the subject year (for e.g. FY 2019-20) and immediately preceding financial year (FY 2018-19) (self attested by authorized person).
Acknowledged copy(s) of TDS returns filed for last 2 financial years.
Once all the details are filled up and appropriate documents are uploaded, the applicant is required to submit the Form 13.
Post submission of Form 13
The online Form 13 is processed and is reviewed by the AO;
The AO reviews the details and documents and asks for clarifications, if any;
Post AO approval, the application is forwarded to Addl CIT for his approval;
Post approval by Addnl CIT, the application is sent to CIT for review and final approval
Post approval by CIT, the application is successfully completed and the process for generation of lower withholding certificated is initiated;
Once Lower Withholding certificate is generated, the same can be downloaded from TRACES portal.
