Exchange Control Manual

Date : May 31, 2005
Annexure I : CBDT circular and form of undertaking/certificate regarding payment of Income-tax


Copy of CBDT's circular No.759 dated 18th November 1997

(Paragraph 3B.10)

F.No. 500/152/96-FTD

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes


Circular No. 759

New Delhi Dated: 18th November 1997


All the Chief Commissioners of Income-tax

Directors General of Income-tax



Remittance to a non-resident - deduction of tax at source -

Submission of No Objection Certificate - Dispensing with - Regarding


Section 196 of the Income-tax Act, 1961 provides that any person responsible or paying

to a non-resident any sum chargeable under the Act shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by cheque or draft or any other mode, whichever is earlier, deduct income-tax thereon at the rates in force.


The Reserve Bank of India have provided in their Office Manual that no remittance shall be

allowed unless a No Objection Certificate has been obtained from the Income-tax Department. It has since been decided that henceforth remittances may be allowed by the Reserve Bank of India without insisting upon a No Objection Certificate from the Income-tax Department and on the person making the remittance furnishing an undertaking (in duplicate) addressed to the Assessing Officer accompanied by a certificate from an Accountant (other than an employee) as defined in the explanation below Section 288 of the Income-tax Act 1961 in the form annexed to this circular. The person making he remittances shall submit the undertaking along with the said certificate of the Accountant to the Reserve Bank of India, who in turn shall forward a copy thereof to the Assessing Officer


The contents of this Circular may be brought to the notice of all the officers working in your charge.

Yours faithfully,

sd/- (Rajat Bansal)

Under Secretary (FTD)

Form of Undertaking and Accountant's certificate regarding payment of Income-tax to be submitted to authorised dealers while making remittances to non-residents vide CBDT

circular No.759 dated 18th November 1997



(Designation of the Assessing Officer)


I/We _______________________________________ propose to make a remittance of ________

(Name, address and Permanent Account Number)


being ________________________________________________________________________

(Nature of payment)

to ___________________________________________________________________________

(name and complete address of the person to whom the remittance has been made)

after deducting a sum of Rs.________ being the tax @_____________, which is the

appropriate rate of tax deductible at source on the said amount of remittance.


A certificate from the Accountant as defined in Explanation below Section 288 of the

Income-tax Act certifying the nature and amount of income, amount of tax payable and the amount actually paid, is also annexed.


In case it is found that the tax actually payable on the amount of remittance made has either

not been paid or has not been paid in full I/we undertake to pay the said amount of tax alongwith interest found due in accordance with the provision of the Income-tax Act.


I/We will also be subject to the provisions of penalty and prosecution for the said default

as per the Income-tax Act.


I/We also undertake to submit the requisite documents etc. for enabling the Income-tax

Department to determine the nature and amount of income and tax, interest, penalty etc. payable hereon.


(Name & Signature)



(The undertaking shall be signed by the person authorised to sign the return of income of the person making the payment).


I/We have examined the books of accounts of M/s._____________________________________

(Name, address and Permanent Account Number

of person making the remittance)

for ascertaining the nature of the remittance, of________________________________________

(Amount of remittance)

to ___________________________________________________________________________

(Name and complete address of the person to whom the remittance is being made)

and the rate at which the tax is deductible at source thereon and hereby certify that

a sum of Rs at the.______ has been deducted as tax appropriate rate and has been paid to the

credit of the Government.





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