Central Board of Direct Taxes (CBDT) has issued Notification No. 58/2020 to further amend Income Tax Rules, 1961 which shall come into force from the date of their publication in the Official Gazette.
Key points of the amendments are:
1. After sub-rule (2) of principal Rule 37BC,relating to Relaxation from deduction of tax at higher rate on making specified payments (in the nature of interest, royalty, fees for technical services, dividend and payments on transfer of any capital asset) to a non-resident, not being a company, or a foreign company and not having permanent account number, a new sub rule 3 has been inserted to provide that the requirement to furnish Permanent Account Number shall not apply to person entitled to receive any sum or income or amount on which tax is deductible in respect of payments made to such person being a non-resident, not being a company, or a foreign company if such class of persons who has, during a previous year, made investment in a specified fund if the following conditions are fulfilled, namely:
i. The non-resident does not earn any income in India, other than the income from investment in the specified fund during the previous year;
ii. Any income-tax due on income of non-resident has been deducted at source and remitted to the Central Government by the specified fund at the rates specified ; and
iii. The non-resident furnishes the following details and documents to the specified fund, namely:— (a) name, e-mail id, contact number; (b) address in the country or specified territory outside India of which he is a resident; (c) a declaration that he is a resident of a country or specified territory outside India; and (d) Tax Identification Number in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the nonresident is identified by the Government of that country or the specified territory of which he claims to be a resident.
2. The specified fund is required to furnish a quarterly statement for the quarter of the financial year in Form No.49BA to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him, electronically within fifteen days from the end of the quarter of the financial year to which such statement relates.
3. A new Form i.e. Form No. 49BA – “Quarterly statement to be furnished by specified fund in respect of a non-resident” has been inserted after Form No 49B.
For further details and newly inserted Form 49BA, please refer the attached document
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“specified fund” means any fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category I or Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, and which is located in any International Financial Services Centre
Source: Central Board of Direct Taxes (CBDT)
