The Central Board of Direct Taxes makes the Income-tax (14th Amendment) Rules, 2021 to amend the Income–tax Rules, 1962.
In the Income–tax Rules, 1962, the following sub rule shall be inserted in rule 114AAB relating to Class or classes of person to whom provisions of section 139A shall not apply.
“(2A) The provisions of section 139A shall not apply to a non–resident, being an eligible foreign investor, who has made transaction only in a capital asset referred to in clause (viiab) of section 47 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, if the following conditions are fulfilled, namely:—
(i) the eligible foreign investor does not earn any income in India, other than the income from transfer of a capital asset referred to in section 47 clause (viiab);
(ii) the eligible foreign investor furnishes the following details and documents to the stock broker through which the transaction is made 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 non–resident is identified by the Government of that country or the specified territory of which he claims to be a resident.
(2B) The stock broker shall furnish a quarterly statement for the quarter of the financial year, in which the details and documents referred to in sub–rule (2A) are received by it, 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 and upload the declaration referred to in sub–clause (c) of clause (ii) of sub–rule (2A) within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income–tax (Systems) or the Director General of Income–tax (Systems) under sub–rule (3).”.