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The resident and Non-Resident Indian (NRI) taxpayers waiting to apply for deduction of taxes at a lower or nil rate on total income are now allowed for the manual filing of a form, according to Central Board of Direct Taxes (CBDT).

For proper administration of the provisions of Section 197 and 206C (9) and to take away genuine adversity being experienced by certain applicants in filing online application in Form No. 13, the CBDT under Section 119(1) of the Income Tax Act has allowed Non-Resident Indians (NRIs), who are not able to register themselves on TRACES or TDS Reconciliation Analysis and Correction Enabling System, to file a manual application in Form No. 13 before the TDS officer or in ASK Centers till March 31, an official release said.

The CBDT has as well allowed resident appliers to file manual application in Form No. 13 before the TDS officer or in ASK Centers till December 31.

An official release said that Rule 28 of the Income Tax Rules, 1962 was amended to prescribe electronic filing of an application for lower deduction or no deduction under section 197 of Income Tax Act, 1961 using a digital signature or EVC (Electronic Signature).

Akin changes were likewise made in Rule 37G to prescribe electronic filing of an application under section 206C (9) for lower or nil rate of Tax Collection at Source (TCS). The functionality for online filing has since been made accessible by Centralized Processing Cell-TDS through TRACES portal.

Form No. 13 is the general form for application under Section 197 and 206C (9).

-Sowmya Sangam