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Clarification on TDS deduction u/a 115BAC of Income Tax Act

Updated: Apr 13

CBDT vide order dated 9 April 2020 (attached) has further clarified as under:

1. Validity Period of Lower Deduction Certificate (LDC): Even if LDC of Financial year 2019-20 was applicable for a specific period (and not for entire year), the same LDC will be effective for Financial year 2020-21 i.e. 1 April 2020 to 30 June 2020, subject to the satisfaction of other conditions (as conveyed in the trailing e-mail) specified in the CBDT Order dated 31 March 2020. For instance, if LDC was issued for a period from 1 October 2019 to 15 December 2019, the same shall additionally apply for Financial year 2020-21 for the period from 1 April 2020 to 30 June 2020, subject to conditions referred in the CBDT Order dated 31 March 2020.

2. Threshold/transaction limit of LDC applicable for Financial year 2019-20 which is extended to 30 June 2020: The threshold/transaction limit for Financial year 2020-21 will be the same as specified in LDC for Financial year 2019-20, but as a fresh limit for the period 1 April 2020 to 30 June 2020 subject to other conditions (as conveyed in the trailing e-mail) referred in the CBDT Order dated 31 March 2020.




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