TaxTMI 
TaxTMI 
Public consultation on the proposal for amendment of Income-tax Rules 1962, to inset new rule 29BA and Form 15E, to give effect to the amendment in section 195 of the Income-tax Act, 1961 (the Act) vide Finance (No.2) Act 2019
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....95 of the Income-tax Act, 1961 (the Act) vide Finance (No. 2) Act 2019- reg. Section 195 of the Act relates to levy of tax deduction at source (TDS) on any sum chargeable to tax and which is paid to a non-resident, not being a company, or to a foreign company. Prior to the amendment, sub-section (2) of the said section provided that where the person responsible for paying such sum chargeable under the Act to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Assessing Officer to determine, by general or special order, the appropriate of such sum so chargeable and upon such determination, tax shall be deducted only on that proportion of the sum....
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.... 195(2) of the Act. 4. In order to streamline the process for making an application by the deductor and to reduce the human interface, section 195 of the Act was amended through Finance (No.2), Act 2019. The new amended section 195 now empowers the Board to prescribe the form and manner of filing of application under sub-section (2) to determine the appropriate proportion of such sum so chargeable and upon determination tax to be deducted as per sub-section (1) of section 195 on that proportion only. Further sub-section (7) of section 195 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 ....
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....ry) payable to non-resident, chargeable in case of the recipient. To, The Assessing Officer, ..................................... I_______________ being the person responsible for making payment to a non-resident or to a foreign company any sum (not being income chargeable under the head "Salaries") do, hereby, request that a certificate may be issued to me after determining the appropriate proportion of such sum chargeable to tax in the case of the recipient (if any) and authorize me to deduct income tax on such appropriate proportion (if any). The relevant particulars are as below: 1. Details of the prayer i. PAN or Aadhaar ii. Name* iii. TAN iv. Status* (Indi....
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.... has been grossed up? (Tick) Yes No vii. Details of previous certificates obtained under section 195(2) for the same transaction Certificate Number Date of issue of certificate 4. Taxability under the provisions of the Income-tax Act (without considering DTAA) i. Is payment chargeable to tax in India as per the provisions of Income-tax Act (Tick) Yes No ii. If not taxable, reasons thereof iii. if taxable, (a) the relevant section of the Act under which the payment is covered. (b) The amount of income chargeable to tax (c) The tax liability (d) Rate at which tax is required t....
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....he reasons for the same (c) If yes, the nature of permanent establishment in India (d) The amount of income chargeable to tax (e) Tax payable on estimated income of the previous year of payee, if available (f) Details of assessed/returned/estimated income of payee of last four previous years, if available (upload copy) B. In case the payment is on account of capital gains, please indicate: (a) Amount of long-term capital gains Date of sale of asset Total sale consideration Date of acquisition Total cost of acquisition (b) Amount of short-ter....
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....ncome (b) Please indicate (I) Whether conditions of section 194LB are satisfied? (Tick) Yes No (II) Whether conditions of section 194LC are satisfied? (Tick) Yes No (III) Whether conditions of section 194LD are satisfied? (Tick) Yes No (IV) If yes, submit relevant documents in support of above (V) Loan Registration Number (LRN) as given by Reserve Bank of India (c) Tax liability on the amount of interest paid (d) Justification of above tax liability F. In case of other payment not covered by sub-items A to E ....