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CMA Intermediate · Direct and Indirect Taxation · Tax Deducted at Source and Tax Collected at Source

Under the Income-tax Act, 2025, which statement about the certificate to be issued by a person who deducts or collects tax is correct?

Every person deducting or collecting tax must issue a certificate to the deductee or collectee showing the amount of tax deducted or collected, the rate applied, and any other prescribed particulars, within the prescribed period. It applies to all such deductions and collections, not only lower-rate cases.

  1. AIt must specify the amount of tax deducted or collected and the rate at which it was deducted or collected, along with other prescribed particularsCorrect
  2. BIt need only state the PAN of the deductee, as amount and rate are shown in returns
  3. CIt is issued by the Assessing Officer to the deductor after the return is filed
  4. DIt is required only when tax is deducted at a lower rate under an Assessing Officer's certificate

Explanation

Every person deducting or collecting tax must issue a certificate to the deductee or collectee stating the tax amount, the rate and other prescribed particulars within the prescribed period. It is not limited to lower-rate cases and is issued by the deductor, not the Assessing Officer.

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