Zero tax certification for foreign remittances under I-T lens

Income tax seeks explanation from a dozen chartered accountants on issuing TDS certificates

The international arm of the income tax (I-T) department is examining the tax deduction at source (TDS) certification issued by chartered accountants (CAs) in case of remitting money abroad.  

According to a senior tax official, the I-T department suspects that entities have colluded with CAs to obtain “zero” TDS certificates and hence, remitted taxable income abroad without paying taxes.

“We have sought an explanation from CAs in certain cases and asked them to file replies. The queries are based on the criteria upon which they had issued TDS certificates,” said the official mentioned above.

About a dozen of Mumbai-based