Section 195 of
the Income-tax Act empowers the Central Board of Direct Taxes to capture
information in respect of payments made to non-residents, whether chargeable to
tax or not. Rule 37 BB of the Income-tax Rules has been amended to strike a
balance between reducing the burden of compliance and collection of information
under section 195 of the Act.
The
significant changes under the amended Rules are:
· No Form 15CA
and 15CB will be required to be furnished by an individual for remittance which
do not requiring RBI approval under its Liberalised Remmittace Scheme (LRS)
· Further the
list of payments of specified nature mentioned in Rule 37 BB which do not
require submission of Forms 15CA and 15CB has been expanded from 28 to 33
including payments for imports.
·
A
CA certificate in Form No. 15CB will be required to be furnished only in
respect of such payments made to non-residents which are chargeable to tax and
the amount of payment during the year exceeds Rs. 5 lakh.
The amended
Rules will become applicable from 01.04.2016.
Notification No. G.S.R. 978(E) dated 16th
December, 2015 is available on the website of the Department at www.incometax.gov.in.
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DSM/MAM/AK