23 March 2009
HELLO SIR, AN ASSESSEE RECEIVES THE RENT FROM THE LISTED COMPANY ON THE GODOWNS AND HE SHOWS THAT RENT INCOME UNDER THE HEAD OF INCOME FROM HOUSE PROPERTY AND TDS IS DEDUCTED AT RATE 15.30%.THE ASSESSEE WANTS TO HAVE LOWER RATE TDS CERTIFICATE FROM A.O. AS HIS TAX LIABILITY IS AROUND 10000RS. AND TDS REFUNDABLE IS AROUND 60000RS TO 70000RS. WHETHER AN ASSESSEE CAN MAKE AN APPLICATION TO THE A.O. FOR LOWER RATE TDS CERTIFICATE?
23 March 2009
Assessee can make application under section 197 if total income of the recipient justifies the deduction of income-tax at any lower rates or no deduction of income-tax as the case may be. So an Assessee can make the application of deduction of tax at lower rate on rent income provided deduction of TDS on rent will exceed the total tax liability of an assessee. It means the tax liability on total income needs to be considered before making application u/s 197.
24 March 2009
File an application before the ITO in Form no 13 and get a certificate from him for onward submission to the tenant. For further details refer rule 28 and 37G of the Income tax Rules,1962 in www.incometaxindia.gov.in
24 March 2009
You can apply u/s 197 in Form 13 before the ITO. But the ITO is not going to grant u summarily, he will examine many thing the following points are note-worty
1) Your previous 3 years Income tax 2) Average rate of tax on Income for the above years. 3) Based on the above if the present TDS seems to be high he may grant Lower deduction of TAx certificate. 4) You may have to take care of that ITO in some cases personally to expedite the process.
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