CBDT Amends Notification Exempting NRs from ITR Filing Incorporating Amended Definition of ‘Investment Fund’

Notification No. 49/2023, dated 14-07-2023

Section 139 of the Income-tax Act 1961 deals with filing return of income (ITR). It defines various criteria which mandate the filing of ITR by different people. Sub-section (1C) of section 139 empowers the Central Government to exempt any class or classes of persons from furnishing ITR having regard to such conditions as may be specified in that notification.

The Central Board of Direct Taxes (CBDT) vide Notification No. 55/2019, dated 26-07-2019, granted exemption from filing Income Tax Returns (ITR) to non-resident individuals (including foreign companies) who earned income from investments in an investment fund established within an International Financial Services Centre (IFSC) situated in India.

Said notification also defined the meaning of ‘investment fund’.

The Finance Act 2023 amended the definition of ‘investment fund’ to include funds regulated under International Financial Services Centres Authority (Fund Management) Regulations 2022 under International Financial Services Centres Authority (IFSCA) Act 2019.

Thus, the CBDT has amended the definition of ‘investment fund’ of said notification to include the above fund within the meaning & give the benefit of exemption from filing of return of income.

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