CBDT vide Notification No.119/2021/F. No. 225/76/2021-ITA.II. dated 11 October,2021 exempts the following class of persons subject to certain conditions specified from the requirement of furnishing a return of income under section 139(1) of the IT Act,1961 from assessment year 2021-2022 onwards :-
| S.No | Class Of Person | Conditions |
| 1. | (i) a non-resident, not being a company; or (ii) a foreign company | (i) The said class of persons 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 (ii) 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 (hereinafter referred to as “said rules‟). |
| 2. | a non-resident, being an eligible foreign investor. | (i) The said class of persons, 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 recognized 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; (ii) 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 (iii) 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 |
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 04thJanuary, 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 1to sub-section (5) of section 43 of the said Act.
The above exemption from the requirement of furnishing a return of income shall not be available to the above mentioned class of persons where a notice under section 142(1) 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.
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