Section 139(1C) of the Income Tax Act, 1961 provides that Central Government may exempt any class of person from the requirement of furnishing a return of income. Central Government normally issues a Notification for this purpose in the Official Gazette. Central Government shall also prescribed the conditions to be fulfilled by assessee. Central Government can only exempt a class of person and not a specific person.
Classes of persons exempted
from the requirement of furnishing a return of income [Section 139(1C)]
Sub-section (1C) was
inserted in section 139 of the Income-Tax Act, 1961 by the Finance Act, 2011,
with effect from 01.06.2011. For the sake of ready reference, the aforesaid
sub-section (1C) is reproduced as follows:
Text of Section 139(1C)
(1C) Notwithstanding anything contained in sub-section (1), the Central
Government may, by notification in the Official Gazette, exempt any class or
classes of persons from the requirement of furnishing a return of income having
regard to such conditions as may be specified in that notification.
Before the insertion of
sub-section (1C) in section 139, under the provisions of section 139(1), every
person if his total income during the previous year exceeded the maximum amount
which was not chargeable to income-tax, was required to furnish a return of his
income.
Procedure to be followed
for issuing Notification
§
Notification issued under
section 139(1C) shall be placed before both houses of Parliament (Lok Sabha
& Rajya Sabha) in next session for 30 days.
§
Parliament may make
modification to such notification.
§
If modification made, such
notification shall apply in modified form.
CBDT notification exempting ITR-filing for non-residents pursuant to ‘Investment Fund’ definition amendment
CBDT, vide Notification No.
49/2023 dated 14.07.2023, amends Notification No. 55/2019 dated 26.07.2019
which exempts non-residents and foreign companies earning income from
investment funds from filing ITR; Expands the scope of ‘investment fund’ to
include any fund established or incorporated in India which is regulated under
the International Financial Services Centres Authority (Fund Management)
Regulations, 2022 made under the International Financial Services Centres
Authority Act, 2019; The definition of investment fund was earlier restricted
to SEBI registered Category I or Category II Alternative Investment Fund
CBDT Notification No. 49/2023/F. No.225/79/2019-ITA-II), Dated 14.07.2023
S.O. 3147(E). - In exercise of the powers conferred by sub-section (1C) of section
139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby
makes the following amendment in the notification of the Government of India,
Ministry of Finance, (Department of Revenue), Number 55/2019, dated the 26th
July, 2019, published in the Gazette of India, Extraordinary, Part-II, Section
3, Sub-section (ii), vide number S.O. 2672(E), dated 26th July, 2019, namely:-
In the said
notification, - Clause (a) of the Explanation to first para is substituted as
under:
“Explanation:- For the purposes of this paragraph,-
a. “investment fund” means any fund
established or incorporated in India in the form of a trust or a company or a
limited liability partnership or a body corporate which has been granted a
certificate of registration as a Category I or a Category II Alternative
Investment Fund and is regulated under the Securities and Exchange Board of
India (Alternative Investment Funds) Regulations, 2012, made under the Securities
and Exchange Board of India Act, 1992 (15 of 1992) or regulated under the
International Financial Services Centres Authority (Fund Management)
Regulations, 2022 made under the International Financial Services Centres
Authority Act, 2019 (50 of 2019);”
2. This
notification shall come into force with effect from the date of its publication
in the Official Gazette.
Exemption to class of persons from the requirement of furnishing a return of income from assessment year 2021 2022 onwards [CBDT Notification No. 119/2021, Dated 11.10.2021]
CBDT Notification No.
119/2021, Dated: 11.10.2021
Subject : Section 139(1C)
of the Income-tax Act, 1961 - return of income - exemption to specified class
of persons from requirement of furnishing a return of income under section 139(1)
from assessment year 2021-22 onwards
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 :-
TABLE
|
S. No. |
class of Persons |
conditions |
|
(1) |
(2) |
(3) |
|
1. |
(i) a non-resident, not being
a company; or |
(i) The said class of persons does not earn any income in India,
during the previous year, other than the income from investment in the
specified fund referred to in sub-clause (i) of clause (c) of Explanation to
clause (4D) of section 10 of the said Act; and |
|
(ii) a foreign company. |
||
|
|
(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”). |
|
|
2. |
a non-resident, being an
eligible foreign investor. |
(i) The said class of
persons, during the previous year, has 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
4. This notification shall
come into force from the date of its publication in the Official Gazette.
CBDT Notification No. S.O. 2672(E) [NO. 55/2019 (F. No. 225/79/2019-ITA.II], Dated 26.07.2019
Subject : Section 139(1C) of the Income-tax Act, 1961 -
Return of income - Exemption to specified class of persons from requirement of
furnishing a return of income under section 139(1) for assessment year 2019-20
CBDT Notification
No. S.O. 2672(E) [NO. 55/2019 (F. No. 225/79/2019-ITA.II], Dated 26.07.2019
In
exercise of the powers conferred by sub-section (1C) of section139 of the
Income-tax Act, 1961 (43 of 1961), the Central Government, hereby exempts the
following class of persons, subject to the conditions specified hereinafter,
from the requirement of furnishing a return of income under sub-section (1) of
section139 of the said Act from Assessment Year 2019-20 onwards, namely:—
Class
of persons
1.
(i) a non-resident, not being a company; or
(ii) a foreign company,
who have any income chargeable under the said Act during a
previous-year from any investment in an investment fund set up in an
International Financial Services Centre (IFSC) located in India.
Explanation:
- For the purposes of this paragraph.-
(a) “investment fund” means any fund established
or incorporated in India in the form of a trust or a company or a limited
liability partnership or a body corporate which has been granted a certificate
of registration as a Category I or Category II Alternative Investment Fund and
is regulated under the Securities and Exchange Board of India (Alternative
Investment Fund) Regulations, 2012, made under the Securities and Exchange
Board of India Act, 1992 (15 of 1992);
(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).
Conditions
2.
In case of class of persons referred to in para 1, -
(i) any
income-tax due on income of the said class of persons has been deducted at
source and remitted to the Central Government by the investment fund at the
tax-rate in force as per provisions of section 194LBB of the said Act; and
(ii) there
is no other income during the previous year for which the said class of persons,
is otherwise liable to file the tax-return.
3.
The exemption from the requirement of furnishing a return of income shall not
be available to the said class of persons 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.
CBDT Notification No. 9/2012 [F. NO.225/283/2011-ITA(II)], DATED 17-2-2012
Subject : Section 139(1C) of the Income-tax Act, 1961 - Return
of income - Exemption to specified persons from requirement of furnishing a
return of income under section 139(1) for assessment year 2012-13
Notification No. 9/2012, Dated 17.02.2012
S.O........... (E). -
In exercise of the powers conferred by sub-section (1C) of section139 of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the
following class of persons, subject to the conditions specified hereinafter,
from the requirement of furnishing a return of income under sub-section (1) of
section139 for the assessment year 2012-13, namely:-
1.Class of persons.
-An individual whose total income for the relevant assessment year does not
exceed five lakh rupees and consists of only income chargeable to income-tax
under the following head,-
(A) “Salaries”;
(B) “Income from other sources”, by way of interest
from a saving account in a bank, not exceeding ten thousand rupees.
2. Conditions, - The
individual referred to in para 1, -
(i) has reported to his employer his Permanent Account Number
(PAN);
(ii) has reported to his employer, the incomes mentioned in sub-para
(B) of para 1 and the employer has deducted the tax thereon;
(iii) has received a certificate of tax deduction in Form 16 from his
employer which mentions the PAN, details of income and the tax deducted at
source and deposited to the credit of the Central Government;
(iv) has discharged his total tax liability for the assessment year
through tax deduction at source and its deposit by the employer to the Central
Government;
(v) has no claim of refund of taxes due to him for the income of the
assessment year, and
(vi) has received salary from only one employer for the assessment
year.
3. The exemption from
the requirement of furnishing a return of income tax shall not be available
where a notice under section 142(1) or section 148 or section 153A or section
153C of the Income-tax Act has been issued for filing a return of income for the
relevant assessment year.
4. This notification
shall come into force from the date of its publication in the Official Gazette.
An Individual having income not exceeding Rs. 5 lacs from salaries/other sources for Assessment year 2011-12 is not required to file return under section 139(1) [Notification No. 36/2011 F. NO. 142/09/2011 (TPL), Dated 23.06.2011]
CBDT Notification No. 36/2011), Dated 23.06.2011
Subject : Section
139(1C) of the Income-tax Act, 1961 - Exemption to specified persons from
requirement of furnishing a return of income under section 139(1) for
assessment year 2011-12
In exercise of the powers conferred by sub-section
(1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central
Government hereby exempts the following class of persons, subject to the
conditions specified hereinafter, from the requirement of furnishing a return
of income under sub-section (1) of section 139 for the assessment year 2011-12,
namely: -
Class of Persons
1. An Individual whose total income for the
relevant assessment year does not exceed five lakh rupees and consists of only
income chargeable to income-tax under the following head, -
(A) “Salaries”;
(B) “Income
from other sources”, by way of interest from a savings account in a bank, not
exceeding ten thousand rupees.
Conditions
2. The individual referred to in para 1, -
(i) has
reported to his employer his Permanent Account Number (PAN);
(ii) has
reported to his employer, the incomes mentioned in sub-para (B) of para 1 and
the employer has deducted the tax thereon;
(iii) has
received a certificate of tax deduction in Form 16 from his employer which
mentions the PAN, details of income and the tax deducted at source and
deposited to the credit of the Central Government;
(iv) has
discharged his total tax liability for the assessment year through tax
deduction at source and its deposit by the employer to the Central Government;
(v) has
no claim of refund of taxes due to him for the income of the assessment year;
and
(vi) has
received salary from only one employer for the assessment year.
3. The exemption from the requirement of
furnishing a return of income-tax shall not be available where a notice under
section 142(1) or section 148 or section 153A or section 153C of the Income-tax
Act has been issued for filing a return of income for the relevant assessment
year.
4. This notification shall come into force from
the date of its publication in the Official Gazette.
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