{"id":14401,"date":"2020-01-04T13:31:13","date_gmt":"2020-01-04T08:01:13","guid":{"rendered":"http:\/\/itatonline.org\/info\/?p=14401"},"modified":"2020-01-04T13:31:13","modified_gmt":"2020-01-04T08:01:13","slug":"s-195-tds-amendment-cbdt-invites-suggestions-from-public","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/s-195-tds-amendment-cbdt-invites-suggestions-from-public\/","title":{"rendered":"S. 195 TDS Amendment: CBDT Invites Suggestions From Public"},"content":{"rendered":"<p>The CBDT has vide letter dated 31.12.2019 invited public consultation on the proposal for amendment of Income-tax Rules 1962, to insert new rule 29BA and Form 15E, to give effect to the amendment in section 195 of the Income-tax Act , 1961 (the Act) vide Finance (No.2) Act 2019<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-6440093791992877\"\n     data-ad-slot=\"6406297397\"\n     data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script> <\/p>\n<div class=\"journal2\"><a href=\"https:\/\/itatonline.org\/info\/cbdt-195-tds\/#blurbdl\">Click here to download CBDT&#8217;s letter dated 31.12.2019<\/a><\/div>\n<blockquote><p>F. No. 370142\/24\/2019-TPL<br \/>\nGovernment of India<br \/>\nMinistry of Finance<br \/>\nDepartment of Revenue<br \/>\nCentral Board of Direct Taxes<br \/>\n*****<br \/>\nDate: December 31s , 2019<br \/>\n147B-II, North Block, Delhi<br \/>\nOffice Memorandum<br \/>\nSubject: Public consultation on the proposal for amendment of Income-tax Rules 1962, to<br \/>\ninsert new rule 29BA and Form 15E, to give effect to the amendment in section 195 of the<br \/>\nIncome-tax Act , 1961 (the Act) vide Finance (No.2) Act 2019- reg.<br \/>\nSection 195 of the Act relates to levy of tax deduction at source (TDS) on any sum<br \/>\nchargea ble to tax and which is paid to a non-resident, not being a company, or to a foreign<br \/>\ncompany. Prior to the amendment, sub-section (2) of the said section provided that where the<br \/>\nperson responsible for paying such sum chargeable under the Act to a non-resident considers that<br \/>\nthe whole of such sum would not be income chargeable in the case of the recipient, he may make<br \/>\nan application to the Assessing Officer to determine, by general or special order, the appropriate<br \/>\nof such sum so chargeable and upon such determination, tax shall be deducted only on that<br \/>\nproport ion of the sum which is so chargeable.<br \/>\n2. However, no format was prescribed for making the application under sub-section (2) of<br \/>\nsection 195. Therefo re, the deductor has to write an application on plain paper and physically<br \/>\nsubmit it to the Assess ing Officer. The AO then issues a certificate determining by general or<br \/>\nspecial order, the appropriate proportion of such sum so chargeable to tax at source under section<br \/>\n(I ) of section 195 of the Act, and there are also no standard operating procedures in respect of<br \/>\nprocessing and disposal of the application under the said sub-section. This increases uncertainty<br \/>\nand causes inconvenience to deductors.<br \/>\n3 Further, sub-section (7 ) of section 195 also provided that the Government may speci fy a<br \/>\nclass of persons or cases, where the deductor who is responsible for paying to a non-resident. not<br \/>\nbeing a company, or to a foreign company, any sum, whether or not chargeable under the<br \/>\nprovisions of this Act. shall make an application to the Assess ing Officer to determ ine. by<br \/>\ngeneral or speci al order. the appropriate proportion of sum chargeabl e, and upon such<br \/>\ndetermination. tax shall be deducted under sub-sec tion (I ) on that proportion of the sum which is<br \/>\nso chargeable. However. no format was prescribed for making such applic ation and neither i<br \/>\nany standard operating procedures specified in respect of processing and disposal of the<br \/>\napplication. There was a demand from various stakeholders to streamline the process of passing<br \/>\nof such orders under section 195(2) of the Act.<br \/>\nF. No. 370142\/24\/2019-TPL<br \/>\n4. In order to streamline the process for making an application by the deductor and to<br \/>\nreduce the human interface, section 195 of the Act was amended through Finance (No.2), Act<br \/>\n2019. The new amended section 195 now empowers the Board to prescribe the form and manner<br \/>\nof filing of application under sub-section (2) to determine the appropriate proportion of such sum<br \/>\nso chargeable and upon determination tax to be deducted as per sub-section (I) of section 195 on<br \/>\nthat proportion only. Further sub-section (7) of section 195 was amended to provide that the<br \/>\nGovernment may specify a class of persons or cases, where the deductor who is responsible for<br \/>\npaying to a non-resident, not being a company, or to a foreign company, any sum, whether or not<br \/>\nchargeable under the provisions of this Act, shall make an application to the Assess ing Officer in<br \/>\nsuch form and manner and Assessing officer to determine in such manner as may be prescribed<br \/>\nthe appropriate proportion of sum chargeable, and upon such determination, tax shall be<br \/>\ndeducted under sub-sect ion ( I) .<br \/>\n5. As a result of the amendments carried out in sub-section (2) and sub-section (7) of section<br \/>\n195 of the Act, vide Finance (No.2) Act, 2019, consequential amend ments have to be carried out<br \/>\nin Income-tax Rules, 1962 (the Rules) and Forms to give effect to the amendments.<br \/>\n6. In view of the above discussion, a new Form I5E is proposed to be introduced in the Rules<br \/>\nto operationalize the provisions of the section 195(2) of the Act.<br \/>\n7. It has been decided to seek the stakeholder&#8217;s comments in relation to proposed Form I5E<br \/>\nto be introduced in the Rules. In this regard. comments and suggestions arc invited from the<br \/>\ngeneral public on the proposed form. The comments\/suggestions may be sent electronically (in<br \/>\nword format) though email at ustpI3@nic .in within 15 days of publication of this document on<br \/>\nthe Income Tax website (www.incometaxindia.gov.in).<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The CBDT has vide letter dated 31.12.2019 invited public consultation on the proposal for amendment of Income-tax Rules 1962, to insert new rule 29BA and Form 15E, to give effect to the amendment in section 195 of the Income-tax Act , 1961 (the Act) vide Finance (No.2) Act 2019<\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/info\/s-195-tds-amendment-cbdt-invites-suggestions-from-public\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-14401","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/14401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=14401"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/14401\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=14401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=14401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=14401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}