1) This section outlines the process for applying for a lower tax deduction certificate using Form 13. Such a certificate applies until cancelled. 2) Individual residents in India whose estimated total income is less than the basic exemption limit can file a declaration in the prescribed form and manner to receive payments without tax deduction under Sections 190 or 194EE. 3) Filing a declaration in writing that the estimated total income for the previous year will be nil allows for non-deduction of tax under certain sections for persons other than companies and firms.

1.  This section applies-income of any person –as
per provisions of sec-
192,193,194,194A,194C,194D,194G,194H,194I,1
94J,194K,194LA,194M,&194 O- Can apply Form
No.13 (Rule 28) to the AO –to get a certificate
authorizing the payer to tax at lower rate or to
deduct no tax
 Such certificate shall be applicable till it is
cancelled.

2.  Filing of declaration for receipt of NSS
payment and dividend without deduction of
tax(Sub.sec 1)
 Individual resident in india – estimated total
income of the previous year is less than the
basic exemption limit – without tax – U/S190
or 194 EE – declaration in duplicate prescribed
form and verified in the prescribed manner

3.  Declaration – in writing – by the declaration –
the declaration will have to be to the effect
that the tax on the estimated total income of
the declarant of the previous year in which
such income is to be included in computing
his total income will be nil.
 Filing of declaration for non deduction of tax
U/S 192A or 193 or 194A or 194D or 194DA or
194I or 194K by persons, other than
companies and firms (sub sec 1A)

4.  No deduction of tax shall be made under
section
192A/193/194/194A/194D/194DA/194EE/194
I/194K – Furnishes a declaration – tax on his
estimated total income – previous year – nil
 The restriction contained in sub sec (1B) will
not apply to resident senior citizens.

5.  All sums deducted – purpose of computing
the income of an assesse be deemed to be
income received
 Following tax paid or deducted would not be
deemed to be income received.
The tax paid by an employer U/S 192 (1A)
Tax deducted U/S 194N

6.  Tax deducted – paid to the credit of CG shall
be treated as payment of tax on behalf
 Persons from whose income the deduction
was made : or
 Owner of the security : or
 Depositor : or
 Unit holder : or
 Shareholder

7.  Any sum referred – sec 192 (1A) – whose
income – such payment of tax has been
made.
 CBDT – empowers – giving credit to other
persons (i.e. other than above mentioned
persons ) further , CBDT can specify the AY
for which such credit may be given

8.  Deductor – Deposit the sum so deducted to
the credit of the CG or as the Board directors
within prescribed time
 Further , an employer paying tax on sec 192
(1A) – Deposit within prescribed time , credit
of the CG or board directors

9.  At presents –TDS are filed in an electronic
mode – the following adjustments can be
made
I. Any arithmetical error in the statement or
II. An incorrect claim if such incorrect claim is
apparent from any information in the
statement
Means : of an item, which is inconsistent with
another entry of the same or some other item
in such statement
- in respect of rate of TDS – such rate is
not in accordance with the provision of the act

10.  Any interest
 The fee if any – sec 234 E – rs.200 for every
day – late furnishing of TDS. However , the
total amount of fee shall not exceed the
total amount of tax deductible / collectible
. And such fee – paid – before delivering me
TDS statement .
 The sum payable by or refund after
adjustment the dedector determined interest
and late fee against – u/s 200/201/234 E.
 An intimation prepared and generated and
send to the deductor – tax liability or refund
due – within 1 year from the end of FY in
which statement is filed. Refund due – shall
be granted to the deductor.

11. 1) DEEMED ASSESSEE –IN DEFAULT
Any person including the principal officer
of a company.
I. who is required to deduct any sum in
accordance with the provisions of the act
or
II. An employer paying tax on non – monetary
perquisiries u/s 192 (1A)
Shall be deemed to be an assesse –in –
default if he does not deduct the whole or part
of the tax or after deducting fails to pay the
tax.

12. 2) NON APPLICABILITY OF DEEMING PROVISION
Above provision not applicable if such payee-
I. Has furnished his return of income u/s 139:
II. Taken into a/c such sum for computing
income
III. Paid the tax due on the income and the
payer furnishes a certificate to this effect
from an accountant in such form as may be
prescribed

13.  INTEREST LIABILITY
As per section 201 (1) – for failure to
deduct tax – simple interest @1% - for every
month or part of the month – amount of such
tax- from the date on which tax was
deductible to the date on which such tax was
actually deducted
As per section 201 (1A) – 1.5% for every
month or part of the month from the date on
which tax was deducted to the date on which
such tax is actually paid.

14.  Recovery of tax through deduction at source
is only one method of recovery
 AO – Can use – other prescribed methods
addition to TDS.

15.  Every person deducting tax at source – to
issue a certificate – tax has been deducted
and amount so deducted , rate of deduction
and other particulars.

16.  U/S 192 – Form no .16 – 15th june –FY-
immediately following any other case – form
no 16A –quarterly within 15 days from the
due date – furnishing the statement of TDS.
 Form no. 16B ,16C or 16D (U/S 194 IA &IB OR
194M) = within 15 days challan cum
statement (form no. 26 QB, 26QC, 26 QD).