TDS question - 27q return filing - CBDT notification 206aa

TDS question - 27q return filing - CBDT notification 206aa

Sir/Madam,  CBDT Notification of Sec. 206AA   Says:

“”Under Income Tax act  - I can deduct at normal domestic rate even though  foreign entity  does not have PAN in India provided I have  collected EmailID/Phone/Address/TRC/TIN.””

I am filing 27Q  with following criteria:=

PANNOTAVBL
Remark  "C"    - Higher deduction
10.3 % tax rate.
Emailid/phone/address/ TIN of foreign entity.
u/s  - 195  / Royalty.
Under Income tax act ( Not DTAA )


  I am getting following Error message  ( Image attached ) with above criteria.  Can you please suggest .

Also Do I really need to select REMARK-"C"-Higher deduction  as I am deducting at normal domestic rate 10.3 % only..


Error Message:
-------------------
T-FV-4298:
Invalid rate of deduction. For Tax deducted at higher rate ( with Remark "C")
rate of deduction should NOT be less than 20%.

Thank you

Asked 7 years ago in Income Tax

Sir,

If you have problem I can ill the form at nominal fees of 1500. U can contact me at 9836144143

Vidya Jain

CA, Kolkata

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 Good day. I am narrowing the question.
Can you please confirm,.

We are filing "27Q"  TDS return  and availing benefits under "CBDT notification 206AA".


We have entered-
----------------------------

PANNOTAVBL.
Remark  "C"    - Higher deduction. ( Please note if you do not have VALID PAN you must need to select "C". in some TDS software you do not select anything ..But internally it set C in .TXT / .FVU file.. )

10.3 % tax rate.
Email-id/phone/address/ TIN of foreign entity.
u/s  - 195  / Royalty.
Under Income tax act ( A ).
GrossedUp=Y

We are getting  following "Warning Message" ( Not Error )  in "FVU".

Should we Ignore that Warning message and upload return .. Will it reject return ?

[
Warning  Message:
--------------------------
T-FV-4298: Invalid rate of deduction. For Tax deducted at higher rate ( with Remark "C")
rate of deduction should NOT be less than 20%.
]

Thank you very much.

Regards

Asked 7 years ago

Answered.

Rohit R Sharma

CA, Mumbai

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