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CA Final · Direct Tax Laws & International Taxation · Non Resident Taxation

Under Rule 214 of the Income-tax Rules, 2026, a certificate granted to Zenith Imports Pvt Ltd for payments to a non-resident is valid up to 31 December of the tax year. Zenith wants a fresh certificate. Which is correct as to when the application for a fresh certificate may be made?

A fresh certificate application may be made after the earlier certificate's validity has expired, or within three months before it expires. Zenith can therefore apply from about 30 September onward, not only after 31 December.

  1. AOnly before the earlier certificate is issued
  2. BOnly after the expiry of the validity of the earlier certificate, but not before
  3. CAfter the expiry of the earlier certificate's validity, or within three months before its expiryCorrect
  4. DOnly within one month after the earlier certificate expires

Explanation

Rule 214(5) permits an application for a fresh certificate after the expiry of the earlier certificate's validity, or within three months before its expiry. So Zenith can apply from 30 September onward, or after 31 December. The option allowing only post-expiry applications ignores the three-month advance window.

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