Non-furnishing of PAN by non-resident: Rules amended by CBDT

G.S.R. 499(E).—In exercise of the powers conferred by clause (d) of sub-section (8) of section 139A and clause (ii) of sub-section (7) of section 206AA 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, namely:—

1. Short title and commencement. – (1) These rules may be called the Income-tax (19th Amendment) Rules, 2020.

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 37BC, after sub-rule (2), the following sub-rule shall be inserted, namely:—

“(3) The provisions of section 206AA shall not apply in respect of payments made to a person being a non-resident, not being a company, or a foreign company if the provisions of section 139A do not apply to such person on account of rule 114AAB.”.

3. In the principal rules, after rule 114AAA, the following rule shall be inserted, namely:—

“Class or classes of person to whom provisions of section 139A shall not apply.

114AAB. (1) The provisions of section 139A shall not apply to a non-resident, not being a company, or a foreign company, (hereinafter referred to as the non-resident) who has, during a previous year, made an investment in a specified fund if the following conditions are fulfilled, namely:—

(i) the non-resident does not earn any income in India, other than the income from investment in the specified fund during the previous year;

(ii) any income tax due on the income of non-resident has been deducted at source and remitted to the Central Government by the specified fund at the rates specified in section 194LBB of the Act; and

(iii) the non-resident furnishes the following details and documents to the specified fund, 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.

(2) The specified fund shall furnish a quarterly statement for the quarter of the financial year, in which the details and documents referred to in clause (iii) of sub-rule (1) 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 authorized by him, electronically and upload the declaration referred to in sub-clause (c) of clause (iii) of sub-rule (1) 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).