On 11 October 2021, the Central Board of Direct Taxes (CBDT) published Notification No. 119/2021, providing an exemption to certain nonresidents from filing income tax returns in India as from assessment year (AY) 2021-22, subject to the fulfilment of following conditions:
A non-resident not being a company or a foreign company shall be exempt from furnishing ITR if the following conditions are prescribed during the previous year:
- 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 him subject to fulfillment of conditions mentioned in Rule 114AAB(1) of the Income-tax Rules, 1962; and
- (c) He has not been issued a notice to file return of income under provisions of Section 142(1) or Section 148 or Section 153A or Section 153C.
A non-resident being an eligible foreign investor shall be exempt from furnishing ITR if the following conditions are prescribed during the previous year:
- The non-resident has made transactions only in capital assets referred to in section 47(viiab), which are 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 him subject to fulfillment of the conditions mentioned in Rule 114AAB(2A) of the Income-tax Rules, 1962.
- (d) He has not been issued a notice to file return of income under provisions of Section 142(1) or Section 148 or Section 153A or Section 153C.
