TMI BlogIncome Tax Clearance Certificate/No Objection Certificate from Income Tax Authorities – Revision of format of undertaking and certificateX X X X Extracts X X X X X X X X Extracts X X X X ..... ar No.27 dated September 28, 2002 enclosing therewith a copy of the Government's circular No.759 dated November 18, 1997 (F.No.500/152/96-FTD) regarding undertaking to be obtained from a person making remittance of foreign exchange. 2. The Central Board of Direct Taxes, Ministry of Finance, Government of India, have now issued Circular No.10/2002 dated October 9, 2002 (F.No.500/152/96-FTD) revising the format of undertaking and certificate to replace the undertaking and certificate as prescribed in CBDT's circular dated November 18, 1997, referred to above. 3. A copy of the circular together with Annexures A and B, issued by CBDT is enclosed. Authorised Dealers should, therefore, before allowing the remittances, obtain the aforesaid u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by a certificate from an accountant. The format of the application and the certificate has been circulated to the authorised dealers by the Reserve Bank of India through their Circular No.A.D. (MA Series) Circular No.48 dated 29.11.1997. 2. However, it has recently been observed that often the certificates have been issued prescribing NIL deduction of tax at source in certain cases where tax was liable to be deducted or prescribing deduction of tax at a lower rate than was payable on the basis of the provisions of the Act and the applicable DTAC. The certificate does not provide for necessary details or the reasons for adopting a certain rate for deduction of tax. This results in unnecessary calling of information from the assessees a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a non-resident - deduction of tax at source - Submission of No Objection Certificate - Dispensing with - regarding ************* 1. Section 196 of the Income-tax Act, 1961 provides that any person responsible for paying to a non-resident any sum chargeable under the Act shall, at the time of credit of such income to the account of the payee or at the time of repayment thereof in cash or by cheque or draft or any other mode, whichever is earlier, deduct income-tax thereon at the rates in force. 2. The Reserve Bank of India have provided in their Office Manual that no remittance shall be allowed unless a No Objection Certificate has been obtained from the Income-tax Department. It has since been decided that henceforth remittances may b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs._________ being the tax @ ______, which is the appropriate rate of tax deductible at source on the said amount of remittance. 2. A certificate from the accountant as defined in Explanation below Section 288 of the Income-tax Act certifying the nature and amount of income, amount of tax payable and the amount actually paid, is also annexed. 3. In case it is found that the tax actually payable on the amount of remittance made has either not been paid or has not been paid in full, I/we undertake to pay the said amount of tax along with interest found due in accordance with the provision of the Income-tax Act. 4. I/we will also be subject to the provisions of penalty and prosecution for the said default as per the Income-tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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