Non-resident investors who do not provide permanent account number will no longer have to face higher tax deduction at source.
Currently nonresident investors are charged 20% tax deduction at source or TDS on their interest earnings, royalty or technical fee. They would require furnishing some personal details and taxing residency certificate from their home country and a few other easily available documents.

Provisions of Sec 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset. Section 206AA of I-T Act provides that if an investor does not have permanent account number or PAN, he or she will be liable to withholding taxes on payments at the rate of 20% or as per tax treaty with the country where investor is resident, whichever is higher.

Under the new rules 37BC, investors will instead need to provide their personal details such as e-mail and contact number, residential address and tax residency certificate from the government of their home country. The investor can provide tax identification number or any other unique identification number, in case a tax residency certificate is not available.