The Central Board of Direct Taxes on 11th October 2021 has granted exemption to the following class of persons from furnishing a return of income for the assessment year 2021-2022.
The class of person’s includes a non-resident, not being a company or a foreign company and non-resident, being an eligible foreign investor.
The conditions for exemptions are as follows:
Non-resident not being a company; or a foreign company does not earn any income in India, during the previous year, other than the income from investment in the specified fund referred to in sub-clause (i) of clause (c) of Explanation to clause (4D) of section 10 of the said Act; and The provisions of section 139A of the said 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 clause (viiab) of section 47 of the said 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 clause (viiab) of section 47 of the said Act and The provisions of section 139A of the said Act are not applicable to the said class of persons subject to fulfillment of the conditions mentioned in sub-rule (2A) of rule 114AAB of the said rules.
The exemption from the requirement of furnishing a return of income shall not be available to the said class of persons where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income Tax Act, 1961, has been issued for filing a return of income for the assessment year specified therein.
