Delay in Issuance of TDS certificate - CBDT reminds field about commitment to taxpayers
CBDT has issued instruction to the field formations that the commitment to tax payers as per the Citizens Charter must be scrupulously adhered to by the Assessing Officers.
As per Section 197 of the Income Tax Act, the Assessing Officer is required to give a certificate of no TDS or TDS at less rate in cases where he is satisfied that the total income of the assessee justifies TDS at a lower rate or no deduction at all.
As per the Citizens Charter, the time line prescribed for a decision on application for no deduction of tax or deduction of tax at lower rate is one month.
Instances have been brought to the notice of the Board, about considerable delay in issuing the lower/non deduction certificate under section 197 by the jurisdictional Assessing Officers.
Board says, "the commitment to tax payers as per the Citizens Charter must be scrupulously adhered to by the Assessing Officers and all applications for lower or no deduction of tax at source filed u/s 197 of the Income-tax Act, 1961 must be disposed of within the stipulated time frame as above."
Board doesn't say it is going to take a serious view if the certificate is not issued within one month. Shouldn't there be some liability/responsibility fixed?
CBDT Instruction No. 1/2014 in F.No.275/03/2014-IT(B), Dated: January 15, 2014