(i) Certain types of remittances are being allowed by Reserve Bank or by authorised dealers under the powers delegated to them subject, interalia, to production of Income-tax clearance certificate/NOC from Income-tax authorities . Under the revised procedure notified by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes , New Delhi , vide their circular No.759 dated 18th November 1997, it will be in order for authorised dealers to allow such remittances without insisting on tax clearance certificate/NOC from Income-tax authorities , provided the person making the remittance furnishes an undertaking ( in duplicate) addressed to the Assessing Officer accompanied by a certificate from an Accountant (other than an employee) as defined in the explanation below Section 288 of the Income-tax Act,1961 in the form prescribed by Government. A copy of CBDTs circular dated 18th November 1997 and the specimen forms of undertaking to be furnished by the remitter and that of the certificate to be furnished by the Accountant are given in the Annexure to this chapter. Authorised dealers should before allowing the remittance obtain the aforesaid undertaking /certificate from the remitter /Acountant for compliance with the Income-tax provisions where necessary.

(ii) Authorised dealer should after making the remittance (irrespective of whether the remittance has been made against Reserve Bank permit or under the powers delegated to them) immediately forward a copy of the applicants undertaking together with a copy of the Accountants certificate , to the Assessing officer of the Income-tax Department as indicated in the undertaking. The other copy each of the undertaking and the certificate should be kept on record for verification by the Iternal Auditors of the authorised dealer/Inpecting Officers of Reserve Bank.