Determination of Appropriate Proportion of Sum Chargeable to Tax in respect of Payments to Non-Residents- Rule 214 (New) / Rule 29B (old)

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....ncome Tax Rules, 2026. Corresponds to Rule 29BA of Income Tax Rules, 1962. Rule 214 of the Income-tax Rules, 2026 prescribes the procedure where a payer makes an application for determination of the appropriate proportion of a payment to a non-resident that is chargeable to tax, particularly in cases covered by section 395(2) or section 400(3). Rule 214(1) - Application in Form No. 129 ....

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.... tax under section 393(2), Table Sl. No. 17. Rule 214(3) - Factors to be considered by Assessing Officer While issuing the certificate, the Assessing Officer shall consider the following in relation to the non-resident recipient: • tax payable on the estimated income for the relevant tax year; • tax payable on the assessed, returned or estimated income of the pr....

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....re expiry of the earlier certificate. Comparative Analysis: Rule 214 of Income-tax Rules, 2026 vs. 29BA Income-tax Rules, 1962 Rule 214 of the Income-tax Rules, 2026 substantially retains the framework of Rule 29BA of the Income-tax Rules, 1962, relating to determination of the appropriate proportion of payments to non-residents chargeable to tax in India. The principal changes are cons....