CBDT vide Notification No. 119/2021 dated 11.10.2021 has exempt certain categories of non-residents from filing of return of income in India from assessment year 2021-22 and onwards.
As per the notification, non-residents who do not earn any income other than income from investment in 'specified fund', being Alternate Investment Fund Category III located in International Financial Services Centres (IFSC) or GIFT city shall not be required to file income tax returns (ITR) in India.
Further, eligible foreign investors (non-residents who operate in accordance with SEBI circular IMD/HO/FPIC/CIR/P/2017/003 dated 04th January, 2017), who during the financial year, have only transacted in capital assets like Global Depository Receipts, Rupee Denominated Bonds, derivatives or other notified securities, listed on recognised stock exchange in IFSC and and the consideration on transfer of such capital asset is paid or payable in foreign currency have also been exempted from ITR filing.
In both the above cases, the non-residents shall have to ensure that they are exempted from the requirement of obtaining PAN as per the provisions of section 139A.
The above exemption from the requirement of furnishing a return of income shall not be available to non-residents where a notice under sub-section (1) of section 142 or section 148 or section 153A or section 153C has been issued for filing a return of income for the assessment year specified in such notices.
Read the full text of Notification No. 119/2021 dated 11.10.2021 on Exemption granted to CErtain Non-residents from filing ITRs
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 11th October, 2021
S.O. 4207(E).—In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as „said Act‟), the Central Government, hereby exempts the following class of persons mentioned in column (2) of the Table below, subject to the conditions specified in column (3) of the said Table , from the requirement of furnishing a return of income under sub-section (1) of section 139 of the said Act from assessment year 2021-2022 onwards :-
TABLE
Explanation.-For the purposes of this Notification. -
(a) "eligible foreign investor" means a non-resident who operates in accordance with the Securities and Exchange Board of India, circular IMD/HO/FPIC/CIR/P/2017/003 dated 04th January, 2017;
(b) “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(c) "recognised stock exchange" shall have the meaning as assigned to it in clause (ii) of Explanation 1 to sub-section (5) of section 43 of the said Act.
3. The above exemption from the requirement of furnishing a return of income shall not be available to the class of persons mentioned in the column (2) of the said Table where a notice under sub-section (1) of section 142 or section 148 or section 153A or section 153C of the said Act has been issued for filing a return of income for the assessment year specified therein.
4. This notification shall come into force from the date of its publication in the Official Gazette.
[Notification No. 119/2021/F. No. 225/76/2021-ITA.II]
RAVINDER MAINI, Director (ITA-II)
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