FORM NO 15C for Application by Banking Company for a Certificate under Section 195(3) For Receipt of Interest and Other Sums without Deduction of Tax. FORM NO 15C is relevant to a banking company which is neither an Indian company nor a company which has made the prescribed arrangement for the deduction and payment of dividend within India and carries on operation in India through a branch.
(1) Any person entitled to receive any interest, or other sum, on which income-tax has to be deducted under sub-section (1) of section 195 may, if he fulfills the conditions specified in sub-rule (2), make an application for the grant of a certificate under sub-section (3) of section 195 authorizing him to receive without deduction of tax under sub-section (1) of that section any such income as is specified here in below, namely:—
(i) where the person concerned is a banking company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India, and which carries on operations in India through a branch, any income by way of interest, not being “interest on securities”, or any other sum, not being dividends;
(ii) in the case of any other person who carries on a business or profession in India through a branch, any sum, not being interest or dividends,
in so far as such interest or other sum is receivable by such branch on its own account and not on behalf of its head office or any branch situated outside India, or any other person.
(2) The conditions referred to in sub-rule (1) are the following, namely:—
(i) the person concerned has been regularly assessed to income-tax in India and has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made;
(ii) he is not in default or deemed to be in default in respect of any tax (including advance tax and tax payable under section 140A), interest, penalty, fine, or any other sum payable under the Act;
(iii) he has not been subjected to penalty under clause (iii) of sub-section (1) of section 271;
(iv) where the person concerned is not a banking company referred to in clause (i) of sub-rule (1)—
(a) he has been carrying on business or profession in India continuously for a period of not less than five years immediately preceding the date of the application, and
(b) the value of the fixed assets in India of such business or profession as shown in his books for the previous year which ended immediately before the date of the application or, where the accounts in respect of such previous year have not been made up before the said date, the previous year immediately preceding that year, exceeds fifty lakhs of rupees.
(3) The application under sub-rule (1) by a banking company shall be in Form No. 15C and by any other person [referred to in clause (ii) of sub-rule (1)] shall be in Form No. 15D.
(4) The Assessing Officer may give a certificate authorizing the person con-cerned to receive the income specified in clause (i) or clause (ii) of sub-rule (1), without deduction of tax under sub-section (1) of section 195, if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the issue of any such certificate will not be prejudicial to the interests of revenue.
(5) The certificate shall be valid for the financial year specified therein, unless it is cancelled by the [Assessing Officer] at any time before the expiry of the said financial year. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate, or within three months before the expiry thereof.
FORM NO 15C
[See rule 29B]
Application by a banking company for a certificate under section 195(3) of the Income-tax Act, 1961, for receipt of interest and other sums without deduction of tax
|The Assessing Officer,|
I,______________, being the principal officer of _______________ [name of the banking company] hereby declare :
(a) That____________________ is a banking company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India and which is operating in India through a branch (es) at __________________;
(b) That the head office of the said company is situated at __________________ [name of the place and country];
(c) that the said company is entitled to receive interest (other than ‘Interest on securities’) and other sums not being dividends, chargeable under the provisions of the Income-tax Act, 1961, during the financial year _______________;
(d) That the company fulfils all the conditions laid down in rule 29B of the Income-tax Rules, 1962.
I, therefore, request that a certificate may be issued authorizing the said company to receive interest other than “Interest on securities” and other sums not being dividends, without deduction of tax under sub-section (1) of section 195 of the Income-tax Act, 1961, during the financial year _______________ I hereby declare that what is stated in this application is correct.