3 CD statement

[Debtosh Dey]

Clause 34a of 3CD statement mentions “specified rate” so that TDS deducted below such rate should be disclosed. I do not find any definition of specified rate in Income Tax Act (nor any clarification in Guidance Notes issued by ICAI). The only clue is Sec 2(37A) where, for the purpose of deduction of tax u/s 192, 193, 194, 194A, 194B, 194BB, 194D and 195 it means rates specified in the Finance Act. The section also includes rates specified in DTA u/s 90 and 90A in relation to TDS u/s 195.

Note that all sections of TDS like 194C, 194H, 194I, etc are not covered in sec 2(37A) stated above and the section goes beyond Finance Act in case of DTA. Therefore, does “specified rate” also include nil or concessional rate of tax granted by Income Tax Authority to recipients under certificates u/s 197 ? If yes, does the clause mean that TDS deducted less than rates specified in Finance Act/ DTA/ Certificate u/s 197 for the relevant section only needs to be disclosed ? (No question if certified rate is ‘nil’).

Debtosh Dey, M.Sc (Engg), FIE, C. Engg (I), FCMA, FCS, LL.B.

[Ganeshan Kalyani]

In my view specified rate means applicable rate for respective services under appropriate section of the TDS provision. The rate could be any rate applicable for such service, may it be lower rate as per Income tax certificate or higher rate of tax deducted or NIL rate. All the expenses to which TDS is deductible is required to be disclosed in clause 34a of Form 3CD annexures. This is my view.

[Debtosh Dey]

Thanks Mr Ganeshan Kalyani.

AI Summary

Clarification Sought on 'Specified Rate' in Clause 34a of Form 3CD: Does It Include Nil or Concessional Rates? A user inquired about the interpretation of 'specified rate' in Clause 34a of the 3CD statement, questioning if it includes nil or concessional tax rates granted under certificates by the Income Tax Authority. They noted that Section 2(37A) of the Income Tax Act refers to rates specified in the Finance Act and DTAs for certain sections but does not cover all TDS sections. A respondent suggested that 'specified rate' refers to any applicable rate under the TDS provisions, including lower, higher, or nil rates, and that all expenses subject to TDS should be disclosed in Clause 34a of Form 3CD.