EXEMPTION FROM FURNISHING PAN TO CERTAIN NON-RESIDENTS
TAX COLLECTION AT SOURCE ON SALE OF MOTOR VEHICLES, GOODS & SERVICES
May 1, 2016RATIONALISATION OF TAX DEDUCTION AT SOURCE PROVISIONS RELATING TO PAYMENTS BY CATEGORY-I AND CATEGORY-II ALTERNATE INVESTMENT FUNDS TO ITS INVESTORS
May 1, 2016The existing provision of Section 206AA provides that any person entitled to receive any sum or income or an amount on which tax is deductible under Chapter XIIB shall furnish PAN to the deductor, failing which tax shall be deducted at calculated higher rate. The said provision is also applicable to non – residents except for payment of interest on long-term bonds as referred under Section 194LC.
It is proposed to amend this Section so as to provide that provisions of this Section shall not be applicable to non residents, in respect of payments other than above mentioned interest on bonds, if an alternative acceptable proof is provided.
It shall be noted that the Government is yet to notify the alternate acceptable proofs in this regard.
This amendment will take effect from 1st June, 2016.