CBDT notifies Changes in Declaration Form 60 for Non-Pan Holders including a Foreign Company

The Central Board of Direct Taxes (CBDT) has notified modifications to Form 60 declaration. These changes pertain to individuals without a PAN (Permanent Account Number) or a foreign company involved in transactions outlined in Rule 114B of the Income Tax Rules, 1962 via issuing Notification.

The Notification stated, “In exercise of the powers conferred by clause (vii) of sub-section (1), clause (c) subsection (5) and sub-section (6A) of section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962.”

These rules may be called the Income-tax (Twenty-fourth Amendment) Rules, 2023. They shall come into force from the date of their publication in the Official Gazette.

In the Income Tax Rules, 1962, (hereinafter referred to as the principal rules) in rule 114B,––

(a) in the second proviso, for the words “Provided further that any person”, the words “Provided further that any person, not being a company or a firm,” shall be substituted;

(b) after second proviso, the following proviso shall be inserted, namely: ––

“Provided also that a foreign company who,––

(i) does not have any income chargeable to tax in India; and

(ii) does not have a permanent account number, and enters into any transaction referred to at Sl. No. 2 or 12 of the Table, in an IFSC banking unit, shall make a declaration in Form No. 60:”;

(c) in the Explanation, clause (1) shall be re-numbered as (1A) and before the said clause as so re-numbered, the following clause shall be inserted, namely: –

“(1) “IFSC banking unit” means a financial institution defined under clause (c) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), that is licensed or permitted by the International Financial Services Centres Authority to undertake permissible activities under the International Financial Services Centres Authority (Banking) Regulations, 2020;”

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