CBDT invites public comments on insertion Rule 29BA and Form 15E

Jan 03, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Central Board of Direct Taxes (CBDT) on December 31, 2019 invites public comments on insertion of Rule 29BA and Form 15E which relates to Application by a person for a certificate under section 195(2) of the Income-tax Act, 1961 , for determination of appropriate proportion of sum (other than salary) payable to non-resident, chargeable in case of the recipient.

To streamline the process for making an application by the deductor and to reduce the human interface, CBDT amended section 195 of the Income-tax Act, 1962 through Finance (No. 2) Act, 2019. The new amended section 195 empowers the CBDT to prescribe the form and manner of filing of application under 195(2) to determine the appropriate proportion of such sum so chargeable and upon determination tax to be deducted as per section 195(1) on that proportion only. Further section 195(7) was amended to provide that the Government may specify a class of persons or cases, where the deductor who is responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of Income-tax Act, 1962, shall make an application to the Assessing Officer (AO) in such form and manner and AO to determine in such manner as may be prescribed the appropriate proportion of sum chargeable and upon such determination, tax and shall be deducted.

Therefore, in view of the above a new Form 15E is proposed to be introduced by the CBDT in the Rules to operationalize the provisions of the section 195(2) of the Income-tax Act, 1962. Further, CBDT invites comments and suggestions from the general public on the proposed form. The comments or suggestions may be sent electronically (in word format) though email at [email protected] within 15 days of publication of this document on the Income tax website (www.incometacindia.gov.in).

[Office Memorandum F. No.370142/24/2019-TPL]


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