Government to relax compliance norms for payments to NRIs
The Revenue Department said reporting and certification requirements in case of payments made to non-residents will be.
NEW DELHI: The Revenue Department today said reporting and certification requirements in case of payments made to non-residents will be relaxed from April 1, 2016.
The Finance Ministry said amendment in the Income Tax Rules have been made to "strike a balance between reducing the burden of compliance and collection of information" in case of payments made by domestic entities to non-residents.
As per the amended rules, a Chartered Accountant certificate 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".
Also, the requirement of furnishing two types of Forms (15CA and 15CB) by an individual for remittance which do not require RBI approval has been done away with.
Further, the list of payments of specified nature which do not require submission of the those two Forms has been expanded from 28 to 33 including payments for imports.
The Income Tax Act empowers the Central Board of Direct Taxes (CBDT) to capture information in respect of payments made to non-residents, whether chargeable to tax or not.
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