CBDT notifies insertion of Rule 29BA for making an application for grant of certificate determining appropriate proportion of sum chargeable to tax in case of payment made to non-residents under sub-section (2) and (7) of Sec. 195, w.e.f. April 1, 2021.
Also, notifies Form 15E [Application by a person for a certificate under section 195(2) and 195(7) of the Income-tax Act, 1961, for determination of appropriate proportion of sum (other than salary) payable to non-resident, chargeable to tax in case of the recipient] to be filed electronically to be examined by Assessing Officer after considering various factors.
While examining the application as filed as per sub rule (1) of Rule 29BA, following information of the recipient shall be taken into consideration by the Assessing Officer:
- tax payable on 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 application under sub-rule (1).
After being satisfied with above said information and other things, Assessing Officer issue the certificate determining appropriate proportion of such sum chargeable under the provision of this Act, for the purposes of tax deduction under sub-section (1) of section 195.
