Non-resident Indian tax-payers seeking tax deduction at source (TDS) certificates from the Income Tax Department will no more have to come to Bengaluru to apply for the same.
For the first time in India, the International Tax Wing of the I-Tax Department in Bengaluru on Wednesday launched online application facility for those seeking TDS certificates. "NRIs looking for lower or nil rate of tax deduction can apply online from where ever they are based," Nutan Wodeyar, Principal Chief Commissioner of Income Tax, announced after launching the facility.
"If all the papers are in order, the TDS certificate can be generated within 24 hours," an official said.
The earlier system would take a maximum of 30 days and would inconvenience those living abroad since they had to physically apply for the certificate, another department official explained.
The Karnataka and Goa circle receives about 100 such applications every month. "The tax payer who seeks nil or lower rate of tax, otherwise has to pay tax at the rate of 20%. Normally, these applications pertain to tax exemption following the sale of a property or payment of royalty or for technical services. TDS exemption will also be based on bilateral arrangements with the respective countries," the official said.
"People seek TDS exemption to avail the provision to reinvest the money in property or bonds. If TDS is not sought, the tax payer will have to file returns and claim refund after reinvestment," the official explained, adding that the online system will also help the department to track TDS exemptions.
NoC for foreign ships
In another development, cargo ships belonging to non-resident shipping companies leaving from Mangaluru, Kochi and Panaji can apply for NoCs online. An NoC issued by the I-T Department is mandatory for customs clearance before a ship leaves port.
"Waiting for NoCs is an expensive affair for ships since they have to pay demurrage charges to the port. Under the new system, shipping companies can apply online before the ship arrives at the port."
