MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 11th October, 2021

S.O. 4207(E).—In exercise of the powers conferred by sub-section (1C) of section 139 of the
Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as „said Act‟), the Central Government, hereby
exempts the following class of persons mentioned in column (2) of the Table below, subject to the
conditions specified in column (3) of the said Table , from the requirement of furnishing a return of income
under sub-section (1) of section 139 of the said Act from assessment year 2021-2022 onwards :-
[भाग II—खण्ड 3(ii)] भारत का राजपत्र : असाधारण 3

TABLE

Sl. No. class of Persons conditions
(1)
1. (2) (3)

2 (i) a non-resident, not being a (i) The said class of persons does not earn any income in
company; or India, during the previous year, other than the income from
investment in the specified fund referred to in sub-clause (i)
(ii) a foreign company. 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‟).

a non-resident, being an (i) The said class of persons, during the previous year, has

eligible foreign investor. made transaction only in capital asset referred to in clause

(viiab) of section 47 of the said Act, which are listed on a

recognised 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 04th January, 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 1 to
sub-section (5) of section 43 of the said Act.

3. The above exemption from the requirement of furnishing a return of income shall not be available
to the class of persons mentioned in the column (2) of the said Table where a notice under sub-section (1)
of section 142 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.

4. This notification shall come into force from the date of its publication in the Official Gazette.

[Notification No. 119/2021/F. No. 225/76/2021-ITA.II]

RAVINDER MAINI, Director (ITA-II)

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