Central Government exempts certain non-residents from furnishing ITR - (11 Oct 2021)
Direct Taxation
The Central Government exempts certain class of persons, subject to the conditions, from the requirement of furnishing a return of income under sub-section (1) of section 139 of the Income-tax Act, 1961 (IT Act) from assessment year 2021-2022. The decision is in wake of easing compliance burden. A non-resident, not being a company; or a foreign company who does not earn any income in India, during the previous year, other than the income from investment in the specified fund referred to in Section 10(4D)(c)(i) of IT Act are exempted. The provisions of Section 139A of the IT Act are not applicable to the said class of persons subject to fulfillment of the conditions mentioned in sub-rule (1) of Rule 114AAB of the Income-tax Rules, 1962.
A non-resident, being an eligible foreign investor during the previous year, has made transaction only in capital asset referred to in Section 47(viiab) of the IT Act, which are listed on a recognised stock exchange located in any International Financial Services Centre and the consideration on transfer of such capital asset is paid or payable in foreign currency. The said class of persons does not earn any income in India, during the previous year, other than the income from transfer of capital asset referred to in Section 47(viiab) of the IT Act. The provisions of Section 139A of the IT Act are not applicable to the said class of persons subject to fulfilment of the conditions mentioned in sub-rule (2A) of rule 114AAB of the said Rules.
"Eligible foreign investor" means a non-resident who operates in accordance with the Securities and Exchange Board of India. The above exemption from the requirement of furnishing a return of income shall not be available to the class of persons where a notice under Section 142 (1) or Section 148 or Section 153A or Section 153C of the IT Act has been issued for filing a return of income for the assessment year specified therein.
Tags : ITR EXEMPTION NON-RESIDENTS
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