Tax Return Filing Exemption for Foreign Investors

CBDT notifies tax return filing exemption for foreign investors earning income from investments in International Financial Service Centre

Non-residents (other than a company) or a foreign company that has any taxable income during a previous year from any investment in investment fund which is set up in an International Finance Service Sector (IFSC) located in India, shall be exempt from filing an income tax return in India for financial year 2018-19 onwards.

Exemption from filing ITR is subject to the following two conditions:

• Tax has been deducted at source (TDS) u/s 194LBB from the income of said foreign investors and deposited to the central government by the investment fund.
• The foreign investors do not have any income other than income from investment fund in IFSC during the financial year.

Note: The above exemption shall not be available to the said persons where a notice has been issued by the tax department for filing a return of income under any of the specified provisions.