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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 16th March, 2021
(INCOME-TAX)
G.S.R. 194(E).—In exercise of the powers conferred by section 195 read with section 295 of
the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following
rules further to amend the Income-tax Rules, 1962, namely:-
1. Short title and commencement.- (1) These rules may be called the Income-tax (5th Amendment)
Rules,2021.
(2) They shall come into force with effect from the 1st day of April, 2021.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 29B, the
following rule shall be inserted, namely, —
“29BA. Application for grant of certificate for determination of appropriate proportion of sum
(other than Salary), payable to non-resident, chargeable in case of the recipients.
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
(1) An application by a person for determination of appropriate proportion of sum chargeable in
the case of non-resident recipient under sub-section (2) or sub-section (7) of section 195 shall be
made in Form 15E electronically,-
(i) under digital signature; or
(ii) through electronic verification code.
(2) The Assessing Officer, in order to satisfy himself, shall examine whether the sum being paid or
credited is chargeable to tax under the provisions of the Act read with the relevant Double
Taxation Avoidance Agreement, if any, and if the sum is chargeable to tax he shall proceed to
determine the appropriate proportion of such sum chargeable to tax.
(3) The Assessing Officer shall examine the application and on being satisfied that the whole of
such sum would not be the income chargeable in case of the recipient, may issue a 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.
(4) While examining the application, the Assessing Officer shall also take into consideration,
following information in relation to the recipient:-
(i) tax payable on estimated income of the previous year relevant to the assessment year;
(ii) tax payable on the assessed or returned or estimated income, as the case may be, of
preceding four previous years;
(iii) existing liability under the Income-tax Act, 1961(43 of 1961) and Wealth-tax Act, 1957(27 of
1957);
(iv) 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).
(5) The certificate shall be valid only for the payment to non-resident named therein and for such
period of the previous year as may be specified in the certificate, unless it is cancelled by the
Assessing Officer at any time before the expiry of the specified period.
(6) An application for a fresh certificate may be made, if the assessee so desires, after the expiry of
the period of validity of the earlier certificate or within three months before the expiry thereof.
(7) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall lay down procedures, formats and standards for ensuring
secure capture and transmission of data and uploading of documents and the Principal Director
General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be
responsible for evolving and implementing appropriate security, archival and retrieval policies in
relation to the furnishing of Form No 15E and issuance of Certificate under sub-rule (3).”
3. In the principal rules, after form 15D, the following form shall be inserted, namely: —
“FORM No. 15E
[See rule 29BA]
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,
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 authorise me to deduct income-tax on such appropriate proportion
(if any). The relevant particulars are as below:
[भागII—खण् ड 3(i)]
भारत का राजपत्र : असाधारण
11
1. Details of the payer:
(i)
PAN or Aadhaar
(ii)
Name
(iii)
TAN (TAN is compulsory for
application u/s 195)
(iv)
Status
(Individual/Firm/Company/AOP/BOI,
as the case may be)
(v)
Residential status
(vi)
Address
(vii)
E-mail ID
(viii)
Mobile Number
2. Details of the recipient:
(i)
PAN (if available)
(ii)
Name
First name
Middle name
Last name
(iii)
Status
(Individual/Firm/Company/AOP/BOI,
as the case may be)
(iv)
Father‟s name (in case of an
individual)
First name
Middle name
Last name
(v)
Date of birth (in case of individuals)
or date of incorporation, if available
(vi)
Address in India (if applicable)
(vii)
Address of recipient in country of
Residence outside India
(viii)
Tax Identification Number of
recipient in the country of Residence
(ix)
Jurisdictional AO, if any
(x)
E-mail ID
(xi)
Mobile Number
(xii)
Passport No. (in case of individual)
3. Details of transaction
(i)
Country to which payment is to be
made
(ii)
Amount payable
In Foreign Currency
In Indian Rs. (on estimated
basis)
(iii)
Proposed date of payment
in dd/mm/yyyy format
(iv)
Relevant previous year for which
Certificate is requested
(v)
Nature of payment/ remittance as per
agreement/document:
Royalty
Fees for technical services
Dividend
Interest
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[PART II—SEC. 3(i)]
Business income
Capital gains
Any other (please mention)
(vi)
In case the payment is net of taxes,
whether tax payable, if any would be
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
DIN (if
available)
(viii)
Tax payable on estimated income of
the previous year of the recipient (if
available)
(ix)
Details of advance tax, TDS, TCS for
the previous year of the recipient, if
available
Advance tax
TDS
TCS
(x)
Details of existing liabilities of
recipient under the Income-tax Act or
Wealth Tax Act, if available
(xi)
Whether the appropriate proportion of
sum to be charged as income of the
recipient is to be determined by
applying a DTAA between India and
the other country or without applying
the DTAA?
(Note: in case of applicability of
DTAA fill up section no 5. In case of
non-applicability of DTAA fill up
section no 4.)
With DTAA Without DTAA
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, the relevant section of the
Act under which the payment is
covered.
(iv)
A. If the payment is on account of
business income, please indicate:
(a) Description of the business
connection.
(b) The amount of income chargeable
to tax under this head.
(c) Tax liability on the chargeable
sum under this head
(d) Justification of above tax liability.
(e) Based on above at what rate tax is
required to be deducted
[भागII—खण् ड 3(i)]
भारत का राजपत्र : असाधारण
13
B. In case the payment is on
account of capital gains, please
indicate:
(a) Provide:
(I) Nature of asset and its location if
any
(II) Amount of long-term capital
gains
Date of sale of
asset
Total sale
consideration
Date of
acquisition
Total cost of
acquisition
(III) Amount of short-term capital
gains
Date of sale of
asset
Total sale
consideration
Date of
acquisition
Total cost of
acquisition
(b) The amount of income chargeable
to tax under this head.
(c) Tax liability on the chargeable
sum under this head.
(d) Justification of above tax liability.
(e) Based on above at what rate tax is
required to be deducted
C. In case the payment is on
account of Royalty, please indicate
(a) Nature of Royalty payment
(b) The amount of income chargeable
to tax under this head.
(c) Tax liability on the chargeable
sum under this head.
(d) Justification of above tax liability.
(e) Based on above at what rate tax is
required to be deducted
D. In case the payment is on
account of Fee for technical services
(FTS), please indicate
(a)Nature of Payment
(b) The amount of income chargeable
to tax under this head.
(c) Tax liability on the chargeable
sum under this head.
(d) Justification of above tax liability
(e) Based on above at what rate tax is
required to be deducted
E. In case of Interest income
(a) Nature of interest income
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[PART II—SEC. 3(i)]
(b) Please indicate
(i) Whether conditions of section
194LB are satisfied?
(Tick) Yes No
(ii) Whether conditions of section
194LBA are satisfied?
(Tick) Yes No
(iii) Whether conditions of section
194LC are satisfied?
(Tick) Yes No
(iv) Whether conditions of section
194LD are satisfied?
(Tick) Yes No
(v) Loan Registration Number (LRN)
as given by Reserve Bank of India
(c) The amount of income chargeable
to tax under this head.
(d) Tax liability on the chargeable
sum under this head.
(e) Justification of above tax liability.
(f) Based on above at what rate tax is
required to be deducted
F. In case of other payment not
covered by items A to E, above
(a) Please specify the nature of
payment
(b) The amount of income chargeable
to tax under this head.
(c) Tax liability on the chargeable
sum under this head.
(d) Justification of above tax liability.
(e) Based on above at what rate tax is
required to be deducted
5. Taxability under the Double Taxation Avoidance Agreement (DTAA)
(i)
Please specify relevant applicable
DTAA
(ii)
Whether copy of Tax Residency
Certificate and Form 10F enclosed
(Tick) Yes No
(iii)
A. If the payment is on account of
business income, please indicate:
(a) Whether such business income is
liable to tax in India under the DTAA
(Tick) Yes No
(b) If no, the reasons for the same
(c) If yes, the nature of permanent
establishment in India
(d) The amount of income chargeable
to tax under this head
(e) Tax liability on the chargeable
sum under this head
(f) justification of above tax liability
(g) Based on above at what rate tax is
required to be deducted
[भागII—खण् ड 3(i)]
भारत का राजपत्र : असाधारण
15
B. In case the payment is on
account of capital gains, please
indicate:
(a) Whether such capital gains are
liable to tax in India under the DTAA
(Tick) Yes No
(b) If no, the reasons for the same
(c) if yes, then provide
(I) Nature of asset and its location if
any
(II) Amount of long-term capital
gains
Date of sale
of asset
Total sale
consideration
Date of
acquisition
Total cost of
acquisition
(III) Amount of short-term capital
gains
Date of sale
of asset
Total sale
consideration
Date of
acquisition
Total cost of
acquisition
(d) The amount of income chargeable
to tax under this head.
(e) Tax liability on the chargeable
sum under this head.
(f) Justification of above tax liability.
(g) Based on above at what rate tax is
required to be deducted
C. In case the payment is on
account of Royalty, please indicate
(a) Whether such royalty is liable to
tax in India under the DTAA
(Tick) Yes No
(b) if no, provide reasons for the same
along with the nature of payment
(c) if yes, then state
(i) Nature of Royalty paid or to be
paid
(ii) The amount of income chargeable
to tax under this head.
(iii) Tax liability on the chargeable
sum under this head
(iv) Justification of above tax liability
(v) Based on above at what rate tax is
required to be deducted
D. In case the payment is on
account of Fee for technical services
(FTS), please indicate
(a) Whether such fee for technical
service is liable to tax in India under
the DTAA
(Tick) Yes No
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[PART II—SEC. 3(i)]
(b) if FTS is not taxable in India
under the DTAA, then state
(i) nature of payment
(ii) whether
there
is
„Make
Available‟ clause in the treaty
(Tick) Yes No
(iii) if there is a claim for „Make
Available‟
clause,
whether
such clause in FTS article is
sought to be included in the
DTAA
through
Most
Favoured Nation Clause?
(Tick) Yes No
(iv) if answer to (iii) above is yes,
whether notification regarding
„Make
Available‟
clause
issued by Government of India
(Tick) Yes No
(v) If there is make available
clause
explain
how
that
requirement is not satisfied
(vi) If there is no make available
clause
explain
how
the
payment is not FTS
(c) if FTS is taxable in India under the
DTAA , then state
(i) Nature of FTS paid or to be paid
(ii) The amount of income chargeable
to tax under this head.
(iii) Tax liability on the chargeable
sum under this head
(iv) Justification of above tax liability
(v) Based on above at what rate tax is
required to be deducted
E. In case of Interest income
(a) Whether such interest is liable to
tax in India
(Tick) Yes No
(b) if no, give reasons along with
nature of interest payment
(c) if yes, then state,
(I) Nature of interest income paid or
to be paid
(II) The amount of income chargeable
to tax under this head.
(III) Tax liability on the chargeable
sum under this head
(IV)
Justification
of
above
tax
liability
(V) Based on above at what rate tax is
required to be deducted
[भागII—खण् ड 3(i)]
भारत का राजपत्र : असाधारण
17
F. In case of other payment not
covered by items A to E
(a) Please specify the nature of
payment
(b) Whether taxable in India as per
DTAA
(Tick) Yes No
(c) If yes, specify relevant Article of
DTAA and the rate of TDS in terms
of relevant Article of the applicable
DTAA
(d) the amount of income chargeable
to tax under this head.
(e) Tax liability on the chargeable
sum under this head
(f) Justification of above tax liability
(g) Based on above at what rate tax is
required to be deducted
(h) If not taxable, please furnish brief
reasons thereof, specifying relevant
article of DTAA
6.
List of Documents to be uploaded:
( i)
Relevant documents such as contract
for sale of goods and/or provisions for
services (if any), computation of
capital
gains,
share
purchase
agreement, bank payment, details of
cost of acquisition, contract note (if
any), share certificate (if any), etc.
(ii)
Details of assessed/returned/estimated
income of payee of preceding four
previous years, if available
(iii)
Computation of estimated income
chargeable to tax and Tax Liability of
the previous year.
(iv)
Copy of Tax Residency Certificate
and Form 10F
(v)
Documents in support of claim of
applicability
of
sections
194LB/
194LBA/194LC/194LD
(vi)
Any other documents you wish to
furnish in support of your claim.
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
VERIFICATION
I……………………….… son/daughter of ………………………. having PAN/Aadhaar number……. do
hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and
truly stated. I also declare that I am making application in my capacity as ……………………. of
…………………… and I am also competent to make this application and verify it.
Date:
Signature:
Place:
Address:
[Notification No. 18/2021 F. No. 370142/24/2019-TPL]
ANKIT JAIN, Under Secy. (Tax Policy and Legislation)
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-
section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended vide
notification number G.S.R. 175(E), dated the 12th March, 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
