CBDT extends the validity of lower withholding tax orders by 3 months

The Central Board of Direct Taxes vide its notification dated 31st March 2020 has extended the validity of all lower withholding tax orders, secured by assesses, for three months till June 30 to mitigate the hardship caused by Covid-19-related disruptions.

In cases where assesses have not been able to apply for such lower/nil deduction certificate for fiscal 2020-21 but were issued such certificates for 2019-20, such certificates will be valid till June 30, 2020. Further assessee who has not applied for issuer of lower or nil deduction of TDS/TCS and does not have any certificate for 2019-20, the CBDT has prescribed a modified procedure for application and consequent handling by the assessing officer.

The order has also prescribed a 10 percent withholding tax on payments to non-residents (including foreign companies) having a permanent establishment in India and not covered by the above scenarios) till June 30 or disposal of application, whichever is earlier.

Click here to read the Notification.

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