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The income tax department has allowed the manual filing of form by resident and NRI taxpayers wanting to apply for deduction of taxes at a lower or nil rate on total income. The Income Tax Act, 1961, provides that if a taxpayer considers that his total income warrants deduction of income tax at lower/ nil rate, he may apply to the assessing officer (AO) requesting for a lower withholding certificate. An application for Nil/ Lower deduction of TDS is required to be filed in Form 13 to the Income Tax Officer, and the tax officer on being satisfied that lower deduction of TDS is justified shall issue a certificate for the same under Section 197.
Here’s the procedure for NRI’s to apply for a nil or low TDS (tax deducted at source) certificate on his income:
• If the payer believes that his income is not fully taxable in India, he may file an application with the income tax officer. There has been an amendment to prescribe the form for such application (with effect from 1 November 2019).
• If the payee believes that his income is not fully taxable in India, he may file an application in Form 13. This form can be filed online through the income tax TRACES website www.tdscpc.gov.in
• NRI needs to submit additional documents to substantiate the claim of nil or lower taxability in India. Once the application is processed, the tax-officer will issue nil or lower TDS certificate.
The information provided in this article is generic in nature and for informational purposes only. It is in no manner can act as a substitute for specific advice in your own circumstances. We Strongly recommend you to seek professional guidance pertaining to your query or doubt.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country. We are a unique, online portal providing all of the information to our users that could be relevant to them.
India is a vast country and a mystery to most. Those who live in it, those who now live outside of India or those who are just visiting. We, at NRIClub™, serve as a centralized hub of information for the residents, non-residents and travellers who are not familiar with various aspects of this great country.
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