Earnings tax dept exempts sure non-residents, international traders from submitting I-T returns. Verify particulars

Further, eligible foreign investors (non-residents who operate in accordance with SEBI instructions), who during the financial year, have only transacted in capital asset like Global Depository Receipts, Rupee Denominated Bonds, derivatives or other notified securities, listed on recognised stock exchange in IFSC, have also been exempted from income tax return filing.

The revenue tax division has exempted sure non-residents and international traders from submitting Earnings Tax Return (ITR) from 2020-21 onwards, a transfer aimed toward easing compliance burden.

Via a notification, the Central Board of Direct Taxes (CBDT) mentioned non-residents (corporates/ in any other case) who don’t earn any revenue apart from revenue from funding in ‘specified fund’, being Alternate Funding Fund Class III positioned in Worldwide Monetary Companies Centres (IFSC) or GIFT metropolis shall not be required to file ITR.

Additional, eligible international traders (non-residents who function in accordance with SEBI directions), who in the course of the monetary yr, have solely transacted in capital asset like World Depository Receipts, Rupee Denominated Bonds, derivatives or different notified securities, listed on recognised inventory alternate in IFSC, have additionally been exempted from ITR submitting.

That is topic to the situation that the consideration for switch of such asset is discharged in international foreign money and no different revenue is earned by such class of individuals in India.

Nevertheless, in each the instances above, these courses of non-residents shall have to make sure that they’re exempted from the requirement of acquiring PAN.

As per I-T guidelines, PAN is just not required if tax has been duly deducted on revenue of non-residents and remitted to the federal government by the ‘specified fund’.

Moreover, requisite particulars and paperwork like contact data, TIN and residential standing declaration, are submitted by the non-resident to the ‘specified fund’.

Nangia Andersen LLP Director Neha Malhotra mentioned because the authorities has all of the tax associated data relating to the taxpayers exempted from submitting ITR and their revenue can also be topic to deduction of tax at supply, this transfer would not impression the federal government kitty.

“Exempting such non-residents from the duty of submitting the return of revenue, merely eases their compliance burden. Decreasing the compliance burden on taxpayers displays on the nation’s environment friendly tax administration, which can additional enhance investor confidence,” Malhotra mentioned.

Tax and consulting agency AKM World, Tax Accomplice Amit Maheshwari mentioned the notification has offered that the abroad traders who put money into a fund working in Reward Metropolis and having revenue from such funds shall not be required to file the tax return in India offered they haven’t any different revenue in India.

“Anyway, such traders aren’t required to have PAN in India and the relief additional makes it simpler to speculate with out a lot compliance hassles and this can assist in additional boosting the standing of Reward metropolis as a preferable funding vacation spot,” Maheshwari added.

BDO India Affiliate Accomplice (Tax & Regulatory Companies) Raghunathan Parthasarathy mentioned in each the instances the place ITR submitting exemption has been given, the tax officer might entry the information of the entities as transactions are topic to Securities Transaction Tax and are carried out within the inventory alternate.

“The notification goals at lowering the compliance burden of non-resident taxpayers in India and is a welcome transfer from the Authorities of India, and can promote the federal government’s ‘Ease of Doing Enterprise’ initiative,” Parthasarathy mentioned.

Dhruva Advisors LLP Accomplice Sandeep Bhalla mentioned the notification gives exemption to following assessees to file their return of revenue –non-resident unit holders of a Class III AIF set-up in IFSC, whereas an exemption had been offered earlier from acquiring a PAN in India, there was no particular exemption granted to them for submitting return of revenue in India.

“The notification additionally gives related exemption to traders which are solely incomes revenue from buying and selling in debt and spinoff securities listed on IFSC alternate, the revenue from which is exempted from tax u/s 47(viiab) of the Act,” Bhalla added.

This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.

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