Assessing Officer can issue a certificate for lower or no deduction of tax:
- To the deductee, if is a resident or
- To the deductor, where the deductee is a non-resident
- If the Assessing Officer is satisfied that the t otal income of the deductee justifies deduction of tax at a lower or nil rate.
Actions to be taken on receipt of the certificate:
- Please validate the PAN of the deductee submitting the certificate
- The Certificate should be valid for the PAN, Section and Rate which has been mentioned in the statement fiiled.
- Check that the certificate is valid for the relevant Financial Year
- Verify that the threshold limit for the certificate has not been exceeded in previous quarters.
- Correct certificate number should be quoted in the statement. Example of Correct Certificate Number - 2XXXAH7XXE
- Raise the Flag "A" in the statement for a certificate u/s 197 and Flag "B" for certificate u/s 197A.
- Please ensure that the Certificate Number is mentioned in the Deductee detail of the statement. (For F.Y.2013-14 Onwards)
- If you are in receipt of a CPC(TDS) Intimation u/s 200A/ 154 for Short Deduction, you are requested to download the Justification report. The details of the Short Deduction due to an issue with the 197/197A certificate can be checked under the TAB "Short Deduction due to 197 Certificates". You may verify the details and correct in accordance with the above guidelines.
- If a Correction Statement is being submitted, please ensure that the above has been taken care of for the Conso File downloaded from TRACES.
- Please ensure that Flag A/B is not raised for any Invalid PAN.
- Please do not raise Flag A/ B for a PAN which does not have the above certificate.
- Avoid mentioning Section code in the "Certificate Number" field of the statement.
- Expired certificates are not to be used.
- Please check that the threshold limit has not been exceeded in the previous quarter.