Earlier, the person making a remittance to Non-Resident was required to furnish a certificate in specified format circulated by RBI.
Basic purpose was to collect the taxes at a stage when the remittance is made as it may not be possible to collect the tax from the NR at a later stage.
Thus to monitor and track the transactions in an efficient manner, it was proposed to introduce e-filling of information in the certificates.
Section 195 of Income tax act, 1961 mandates the deduction of Income tax from payments made to Non Resident. The person making the remittance to non – resident needs to furnish an undertaking (in form 15CA) accompanied by a Chartered Accountants Certificate in Form 15CB.
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