The Central Board of Direct Taxes (CBDT) on Tuesday notified the new Income Tax Form 15E and Rule 29BA to operationalize the provisions of Section 195.
Section 195 was amended by the Finance (No. 2) Act, 2019 to empower the board to prescribe the form and manner of filing the application to determine the appropriate proportion of such sum so chargeable and upon determination tax to be deducted as per section 195 on that proportion only.
Form 15E is an Application for a grant of certificate for determination of the appropriate proportion of sum (other than Salary), payable to a non-resident, chargeable in case of the recipients.
The form will come into effect from 1st April 2021.