Exemption to specified person from filing return of income for the AY 2019-20

The Central Board of Direct taxes through its notification dated 26th July 2019, has exempted certain class of person from the requirement of furnishing a return of income under section 139(1) Income Tax Act, 1961 from assessment year 2019- 20 subject to the conditions specified.

The order has been made in exercise of power under Section 139 (1C) under which Central Government is empowered to exempt, any class or classes of person from the requirement of furnishing a return of income.

Exempted Class of persons under the notification:

Non-residents, not being a company and Foreign companies who have any income chargeable under the Act during a previous-year from any investment in an investment fund set up in an International Financial Services Centre (IFSC) located in India.

“Investment 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.

“International Financial Services Centre” must be approved by the Central Government.

Conditions to avail exemption:

To avail the exemption, following conditions must be fulfilled:

  1. any income-tax due on income of the said class of persons has been deducted at source and remitted to the Central Government by the investment fund.
  2.  there is no other income during the previous year for which the said class of persons, is otherwise liable to file the tax-return.

Exemption is not be available in cases where Assessing Authority has issued notice under any of the following sections:

  1. Section 142(1): Tax notice for further details. Notice can also be issued when return has not been filed.
  2. Section 148: Notice to furnish return before re-assessment or re-computation under Section 147 for Income escaping assessment.
  3. Section 153A or section 153C: Notice to furnish return where search is initiated under section 132 or books of account, other documents or any assets are requisitioned under section 132A.

Click here to see notification.


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