Furnishing of information for payment to a non-resident, not being a company, or to a foreign company

Chargeable sums (sub-rule 1). The payer furnishes:

• Part A of Form No. 145 where the payment, or aggregate payments in the tax year, do not exceed Rs. 5,00,000;
• Part B where they exceed Rs. 5,00,000 and a certificate or order has been obtained from the Assessing Officer under section 395(1) or (2); and
• Part C where they exceed Rs. 5,00,000 and a certificate in Form No. 146 has been obtained from an accountant as defined in section 515(3)(b). Part C is not needed where Part B has been furnished.

Sums not chargeable (sub-rules 2 and 3). For a sum not chargeable under the Act, the payer furnishes Part D of Form No. 145. No information is required, however, where:

• the remittance is by an individual and does not need prior Reserve Bank of India approval under section 5 of the Foreign Exchange Management Act, 1999 read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000;
• the remittance is by a Unit of an International Financial Services Centre referred to in section 147(1)(b); or
• the remittance is of a nature in the rule's list of Reserve Bank of India purpose codes — among them Indian investment abroad, loans to non-residents, import payments, business, pilgrimage, medical and education travel, maintenance of offices and embassies abroad, family maintenance, personal gifts and donations, payment or refund of taxes, and export refunds and rebates.

How and when (sub-rules 4 and 5). Form No. 145 is furnished electronically, either under digital signature or with a signed printout, under the procedures, formats and standards of the Director General of Income-tax (Systems) under rule 332, and then submitted to the authorised dealer before the payment is remitted. An income-tax authority may require the authorised dealer to furnish a copy of a form submitted under sub-rule (4)(b).

Quarterly statements (sub-rule 6). For all remittances under sub-rules (1) to (3), a quarterly statement goes to the Director General of Income-tax (Systems) or authorised person within fifteen days from the end of the quarter: by the authorised dealer in Form No. 147, or by an IFSC Unit referred to in section 147(1)(b) in Form No. 148.

Definitions (sub-rule 7). "Authorised dealer" is a person authorised under section 10(1) of the Foreign Exchange Management Act, 1999; "International Financial Services Centre" and "Unit" have the meanings in sections 2(q) and 2(zc) of the Special Economic Zones Act, 2005.