Conditions under section 397(2)(c) for non-application of deduction of tax at higher rate, in case of non-residents

The relief (sub-rule 1). Section 397(2)(b)(i) does not apply to a non-resident (not being a company) or a foreign company without a Permanent Account Number, for payments of interest, royalty, fees for technical services, dividend and payments on transfer of any capital asset, if the deductee furnishes the details and documents below to the deductor.

Details and documents (sub-rule 2).

• (a) name, e-mail id and contact number;
• (b) address in the country or specified territory outside India of which the deductee is a resident;
• (c) a certificate of residence from the Government of that country or territory, if its law provides for one; and
• (d) the deductee's Tax Identification Number in that country or territory or, if none, a unique number by which its Government identifies the deductee.

No PAN required (sub-rule 3). Section 397(2)(b)(i) also does not apply to payments to a non-resident (not being a company) or foreign company that is not required to apply for a PAN in view of section 262 and the rules under it.