Procedure regarding grant of approval under section 80 RRA
1. Section 80RRA of the Income-tax Act, 1961 provides, inter alia, for deduction from the gross total income, in respect of remuneration received in foreign currency by a technician for services rendered outside India. The deduction is at the rate of 50 per cent of the remuneration or 75 per cent of the remuneration as is brought into India, whichever is higher. The terms and conditions of services outside India of such technician are to be approved for the purposes of claiming the deduction. The authority to grant the approval for this purpose has been delegated to the Joint Secretary (F.T. & T.R.), Department of Revenue, Ministry of Finance.
2. In respect of officers and seamen of the Indian merchant navy employed on ships of the Indian companies, such approval is granted for three years at a time to avoid repetitive applications.
3. On a review of the system of filing applications under section 80RRA, the following features have been noticed :—
(i) The applications do not contain the complete postal address of the applicant.
(ii) In many cases, the details relating to the income-tax assessment of the applicant are either not furnished or are incomplete.
(iii) The certificates from the employer confirming the payment of remuneration in foreign currency for services rendered outside India is not signed by the employer.
These infirmities delay the processing of the applications.
4. In order to expedite processing of applications seeking approval under section 80RRA, the following guidelines are issued :—
(i) The application should be signed by the applicant and filed in duplicate and should state the complete postal address of the applicant. Furnishing the address of any authorised representative is not sufficient.
(ii) The applicant should indicate the income-tax authority in whose jurisdiction he is either assessed to tax or is assessable to tax, and his Permanent Account Number (PAN). If he is not assessed, he should apply for a PAN and indicate the authority before whom he has filed the application.
(iii) In respect of applications from Indian seamen employed on ships of Indian companies, the signed certificate (in original) of the employer indicating the total remuneration as well as the remuneration received in foreign currency should invariably be furnished in the first year for which the application is made. In respect of other applications, the certificate should be for the years for which the application is made.
(iv) If the application is filed through an authorised representative, a letter of authority should be filed along with it.
Circular: No. 705, dated 20-6-1995.
