Thursday, August 8, 2013

I-T dept relaxes foreign remittance rules

In a major relief for people making payments overseas, the Central Board of Direct Taxes (CBDT) has amended rules for furnishing information during such monetary transactions. The amendment, which will come into effect from October 1, 2013, stipulates a minimum amount above which information is required to be furnished.

Thus, remittance transfer of above Rs50,000 to foreign companies now, will only require furnishing of a signed form as prescribed by the income tax department.

“The information in form no. 15CA will be furnished by the person electronically to the designated website and thereafter signed printout of the form shall be submitted to the authorised dealer, prior to remitting the payment,” the new rule said.

“Form no. 15CA is not required to be submitted if the amount of payment does not exceed Rs50,000 and aggregate of such payments made during the financial year does not exceed Rs2,50,000,” an official said.

The amended rule is applicable only for payments made to non-resident and non-company in any foreign country. Till now, all remittances were required to file the form and furnish the information of such transfer of money. The rule also specified 39 types of transfer – known as specified list – where the rule is applicable. Which includes investment in equity, mutual funds, freight on imports, travel of pilgrimage, medical treatment, etc and not taxable.

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