How to e-file Form 15E – Under Rule 29BA under Income Tax Act.

Form 15E online e-file

What is New Form 15E under Income Tax Act?

Form 15E is an Application by a person for a certificate under section 195(2) and 195(7) of the Income-tax Act, 1961, for determination of the appropriate proportion of sum (other than salary) payable to non-resident, chargeable to tax in case of the recipient.

As per provisions of section 195 if any person is responsible to pay any sum to a Non-Resident then the person responsible to pay, has to deduct TDS under section 195 of Income Tax Act, 1961. As per the provisions of section 195 payer has to submit an application to the assessing officer to check whether the whole sum is taxable in the hands of the Non-resident or not.

Before 1st April 2021, Payer has to write an application on a plain paper and physically submit it to the Assessing Officer.

Now, From 1st April 2021 onwards Keeping under consideration today’s scenario and for convenience in the future, CBDT inserted New Rule 29BA (reproduce at the end of the article) vide Notification No. 18/2021 dated 16.03.2021 and also notify a New Form 15E which is an online form.

What Documents is required for Form 15E online filling?

Before going further, take brief look on what documents are required to be attached with Form 15E:-

  • Details of Assessed/Returned/Estimated Income of payee of preceding 4 Previous years.
  • Computation of estimated income chargeable to tax and Tax liability for the Previous year.
  • Copy of Tax Residency Certificate and Form 10F.
  • Documents that support a claim under section 194LB/194LBA/194LC/194LD
  • Relevant Documents Like Computation of Capital Gain, Contract of sales or provision of services, bank payments, details of cost acquisition, etc.
  • Any other documents which support the claim.

Key Points which kept into consideration by the Assessing Officer, while examining the Application.

While examining the application, the Assessing Officer has to examine the below-mentioned information with respect to the recipient

  1. Tax payable on estimated income of previous financial year relevant to Assessment Year;
  2. Tax payable on assessed/returned/estimated income of preceding 4 previous years;
  3. Existing liability under the provisions of Income Tax Act, 1961 and Wealth Tax Act, 1957;
  4. Advance Tax payment, TDS and TCS for the assessment year relevant to previous year till the date of making application;

How to File Form 15E online?

Step 1: Go to TRACES website www.tdscpc.gov.in. Login to TRACES website as a Deductor with your “User ID”, and “Password” with the TAN of The Deductor.

Step 2: Go to Forms tab and click on “Request for Form-15E covered U/S-195(2)‟ to initiate request.

Form 15E online file

Step 3: Check list for 195(2) Certificate will be appear on the next screen. Click on “Proceed‟ button.

Step 4: Select “Request Type‟ and “Financial Year‟ from the drop down then click on “Proceed‟ button.

Step 5: User need to fill details of Payer, Recipient and Transaction which are required to be furnished in Form-15E request then click on “Next‟ button to proceed further. Form 15E requires details in 6 major parts;

  1. Details of the Payer.
  2. Details of the Recipient.
  3. Details of the Transaction.
  4. Taxability under the provisions of the Income Tax Act (without considering DTAA)
  5. Taxability under the Double Taxation Avoidance Agreement(DTAA)
  6. List of Documents to be uploaded.

Step 6: After clicking on “Next‟ button, fill the details in annexure according to the Nature of remittance and applicability of DTAA/Non DTAA selected.

Step 7: User need to upload the relevant files. Click on “Browse‟ to select a file and then click on “Upload‟ to upload the document in tiff, .pdf, .zip,. JPEG formats only.

Step 8: After submitting declaration, click on “Preview & Submit‟ button to review the form details. User need to click on “Submit‟” for final submission. After clicking on “Submit” button, a pop-up will displayed to validate the Form-15E request through DSC (Digital Signature Certificate) or I-PIN if user is coming at TRACES through bank integration

Step 9: After validation, a success message will be appear on the screen,

Step 10: User can check the status under “Track Request for Form-15E covered U/S-195(2)‟ option available under “Forms‟ tab. User can cancel the request till status is “Submitted‟ and “Clarification required by AO‟.

What is the Validity of the Certificate issued under rule 29BA?

  • for the payment to Non Resident named in Application;
  • for such Previous Year specified in Application;
  • till the time, A. O. cancelled the certificate before the expiry of time;
Certificate under Form 15E

What is New Rule 29BA?

New rule 29BA is dealing with An application for the determination of the appropriate portion of sum chargeable to tax under the provisions of Section 195(2) has been submitted by the deductor in Electronically form(Form 15E).

Such Application verified with Digital signature or Electronic Verification Code(EVC).

Subsequently receive of Application, Assessing Officer examine whether the sum which is being paid or credited is chargeable to tax under the normal provisions of Income Tax Act read with the provisions of Double Taxation Avoidance Agreement (DTAA) and if such sum is chargeable to tax, proceed to determine the what amount shall be chargeable to tax.

After satisfaction that whole sum would not be chargeable to tax AND examination of the application, Assessing Officer may issue the Certificate disclosing the appropriate portion of sum chargeable to tax, for the purpose of Section 195(2).

Note:- New Application may be made for fresh certificate after the expiry of validity of earlier certificate or with in 3 months of before the expiry of validity.

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