Notification No. 18/2021 [F. No. 370142/24/2019-TPL] /GSR 194(E)

Last updated: 18 March 2021

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The Central Board of Direct Taxes has issued Notification No. 18/2021, introducing the Income-tax (5th Amendment) Rules, 2021. These rules, effective from 1st April 2021, amend the Income-tax Rules, 1962. A new rule, 29BA, has been inserted, detailing the process for non-residents to apply for a certificate to determine the appropriate proportion of sums (other than salary) payable to them that are chargeable to tax in India.

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,2

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FAQ :

The Income-tax (5th Amendment) Rules, 2021, come into force with effect from the 1st day of April, 2021.

Rule 29BA outlines the procedure for a person to apply for a certificate to determine the appropriate proportion of a sum (other than salary) payable to a non-resident that is chargeable to tax in India.

An application under Rule 29BA must be made in Form 15E electronically, either under digital signature or through an electronic verification code.

The Assessing Officer will examine whether the sum being paid or credited is chargeable to tax under the Income-tax Act and any relevant Double Taxation Avoidance Agreement. If chargeable, they will determine the appropriate proportion of that sum.

While examining the application, the Assessing Officer will take into consideration specific information related to the non-resident recipient.