CBDT Insert New Form-15E under Rule 29BA
The CBDT inserts a new Form 15E under rule 29BA to the provisions of section 195.
Section 195 was amended by the Finance (No. 2) Act, 2019 to authorise the board to prescribe the form and manner of filing the application to govern the appropriate proportion of such sum so chargeable and upon determination tax to be deducted as per section 195 on that proportion only.
Form 15E is an Application for a grant of certificate for determination of the appropriate proportion of sum (other than Salary), payable to a non-resident, chargeable in case of the recipients. The form will come into effect from 1st April 2021.
It can file Form 15E electronically on the Income-tax portal using a DSC or EVC.
Assessing Officer shall analyse the application and on being satisfied that the whole of such sum would not be the income chargeable in case of the recipient, may issue a certificate for the purpose of TDS determining the appropriate proportion of such sum chargeable under the provision of section 195 of the Act.
The Assessing Officer shall take the following information into consideration.
- tax payable on the estimated income of the previous year relevant to the assessment year;
- tax payable on the assessed or returned or estimated income, as the case may be, of preceding four previous years;
- existing liability under the Income-tax Act, 1961(43 of 1961) and Wealth-tax Act, 1957(27 of 1957);
- advance tax payment, tax deducted at source, and tax collected at source for the assessment year relevant to the previous year till the date of making an application under sub-rule (1).
The certificate shall be valid only for the payment to non-resident named therein and for such period of the previous year as may be specified in the certificate, unless it is rescinded by the Assessing Officer at any time before the expiry of the specified period.
An application for a fresh certificate may be made, if the assessee so desires, after the expiration of the period of validity of the earlier certificate or within three months before the expiry. The Principal Director General of Income-tax or the Director-General of Income-tax, as the case may be, shall lay down procedures, formats, and standards for ensuring secure capture and transmission of data and uploading of documents and the Principal Director General of Income-tax or the Director-General of Income-tax shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the furnishing of Form No 15E and issuance of Certificate under sub-rule (3).
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