Reduced Regulatory Compliance Burden to improve ‘Ease of Doing Business’ Initiative!
A welcome move from the Government of India!
The exemption from filing return of income is available to the following class of persons from Assessment Year 2021-22.
CBDT exempts certain non-residents from furnishing ITR
(Notification No. 119, dated 11-10-2021)
The Central Board of Direct Taxes (CBDT) has exempted the following class of persons from the requirement of furnishing a return of income under section 139 if they satisfy prescribed conditions:
1. A non-resident not being a company or a foreign company shall be exempted from furnishing ITR if the following conditions are prescribed during the previous year:
(a) The non-resident does not earn any income in India other than the income from investment in the specified fund referred to in section 10(4D)(c)(i);
(b) The provisions of section 139A do not apply to them subject to fulfillment of conditions mentioned in Rule 114AAB (1) of the Income-tax Rules, 1962; and
(c) Not been issued a notice to file a return of income under provisions of Section 142(1) or Section 148 or Section 153A or Section 153C.
2. Eligible Foreign Investor
A non-resident being an eligible foreign investor shall be exempted from furnishing ITR if the following conditions are prescribed during the previous year:
(a) The non-resident has made transactions only in capital assets referred to in section 47(viiab), listed on a recognized stock exchange located in any International Financial Services Centre (IFSC), and the consideration on transfer of such capital asset is paid or payable in foreign currency;
(b) The non-resident does not earn any income in India other than the income from the transfer of capital assets referred to in section 47(viiab); and
(c) The provisions of section 139A do not apply to them subject to fulfillment of the conditions mentioned in Rule 114AAB(2A) of the Income-tax Rules, 1962.
(d) Not been issued a notice to file the return of income under provisions of Section 142(1) or Section 148 or Section 153A or Section 153C.
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