The government has made significant changes in the rules in case of payments made to non-residents.
A Non Resident Indian (NRI) is a person resident outside India, who is a citizen of India or is a person of Indian origin and holds a Indian Passport.
The Finance Ministry said amendment in the Income Tax Rules have been made to "strike a balance between reducing the burden of compliance and collection of information" in case of payments made by domestic entities to non-residents.
The 3 significant changes under the amended rules are:
1) There will be no requirement of Form 15CA and 15CB to be furnished by an individual for remittance which do not requiring RBI approval under its Liberalized Remittance Scheme (LRS)
2) Further the list of payments of specified nature mentioned which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.
3) A CA certificate in Form No. 15CB will be required only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs 5 lakh".
The amended rules will become applicable from 01.04.2016.