As per sub section (1) of section 195 of Income Tax Act, 1961 any person responsible for paying to a non resident, not being a company or to a foreign company any interest or any other sum chargeable under the Act shall deduct tax at source. Further, as per sub section (6) of section 195 of Income Tax Act, 1961 read with rule 37BB of the income tax rules, 1962 such person shall also file prescribed information in form 15CA.
Provisions applicable till 31-03-2016
For cases falling under clause (ii) above the person is also required to obtain a certificate as under:
Provisions applicable with effect from 01-04-2016
The form 15CA is required to be filed electronically to the website designated by the of the income tax department and thereafter the signed printout of form 15CA shall be submitted to the authorized dealer, prior to remittance of the payment.
Steps for filing of Form 15CA:
After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form. A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited. On confirmation, a filled up Form 15CA with an acknowledgement number will be displayed.
Print out of the Form should be taken, signed and submitted prior to remitting the payment. Form 15CA can be re-printed by selecting the re-print option. For re-printing, please enter "acknowledgement no.", "PAN" and/or "TAN" mentioned in the Form.
Please note that Form 15CB or other certificates are not required to be online filed but they are required to be obtained and their details are required to be filled in the part-B of the revised form 15CA.
RBI vide Notification dated 30-06-2014 has also clarified that with respect to tax matters on remittances to non-residents, CBDT Notification shall apply.