No objection certificate before remittances of income of hte nature of dividends or royalty - Income Tax - 536/CBDT

INSTRUCTION NO. 536/CBDT Dated : March 29, 1973 Section(s) Referred: 195(1) Statute: Income - Tax Act, 1961 Reference is invited to Shri J.C.Kalra's demi-official letter No. 67/29/69-IT(A-II) dated 18th July, 1969 to Shri M.K.Venkatachalam of the Department of Economic Affairs (copy endorsed to all Commissioners for information and guidance). It was stated therein that the no objection certificate required by the Reserve Bank of India, before the remittances of income of the nature of dividends or royalty to a non-resident is allowed, could be obtained from the Income-tax officer assessing the recipient. If the jurisdiction over the recipient's case has not been determined, the certificate may be asked for and obtained either from the Income-tax officer assessing the payer or from the Board. 2. It has been reported to the Board that in a case from Delhi charge such a certificate on the payer's request was not issued by an I.T.O. on the plea that there is no provision in the I.T. Act to this effect. In view of the instructions of the Board referred to above, the action of the I.T.O. was incorrect and highly improper. 3. It is requested that the instructions of the Board in this regard may please be brought to the notice of all the Income-tax officers in your charge and they may be directed to deal with requests for issue of such certificates expeditiously.