{"id":15129,"date":"2020-08-21T15:02:33","date_gmt":"2020-08-21T09:32:33","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=15129"},"modified":"2020-08-21T15:02:34","modified_gmt":"2020-08-21T09:32:34","slug":"cbdt-clarifies-its-take-on-non-furnishing-of-pan-by-non-resident","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/cbdt-clarifies-its-take-on-non-furnishing-of-pan-by-non-resident\/","title":{"rendered":"CBDT Clarifies its take on Non-Furnishing of PAN by Non-Resident"},"content":{"rendered":"\n

On Monday, the Central Board of Direct Taxes (CBDT) announced the Income Tax Rules 2020 regarding FORM No. 49BA and non-furnishing of PAN by non-resident. The CBDT made this declaration in the view of the amendment of Income-tax Rules, 1962.<\/p>\n\n\n\n

Rule 37BC – The section 206AA<\/h2>\n\n\n\n

As per rule 37BC – The section 206AA provisions will not remain active in the state when the payments are disbursed to a non-resident. If the section 139A provisions do not apply to non-resident as per rule 114AAB, sub-rule (3) will be incorporated. Section 139A clearly states that the person who fails to avail PAN number must confront the Assessing Officer for the allotment of the same. <\/p>\n\n\n\n

\"Rule<\/figure><\/div>\n\n\n\n

Read our article<\/b>:Major reforms aimed at Transparent Taxation for \u2018Honoring the Honest\u2019 \u2013 PM Modi launched.<\/a><\/mark><\/p>\n\n\n\n

Applicability on Non-Resident<\/h2>\n\n\n\n

However, as per Rule 114AAB, “section\n139A would not be applicable to a non-resident who has made an investment in a\nspecific fund in the previous year. The rule further adds that non-residents\ncannot claim any income in the country other than investment-related income\nmade in the preceding years. <\/p>\n\n\n\n

In addition to that, any income tax due on\nthe non-resident’s income has been deducted specified fund at the rate\nspecified in section 194LBB. Lastly, the non-resident must provide details such\nas email id, phone number, and address of the permanent resident, a declaration\nstating resident details, TIN, and a unique number for the identification\npurpose. All the information should be furnished in the context of a specified\nfund. <\/p>\n\n\n\n

Quarterly statement of the fiscal year<\/h3>\n\n\n\n

“The specified fund must reflect the quarterly\nstatement of the fiscal year involving the information related to clause (iii)\nof sub-rule (1) in form No.49BA. The applicant needs to forward this info\nelectronically to Principal Director General of Income-tax (Systems) or the\nDirector-General of Income-tax (Systems) along with the declaration related to\nsub-clause (c) of clause (iii) of sub-rule (1) within two weeks from the end of\na quarter of the fiscal year. The information incorporated in this form should\nnot deviates from the procedures and format prescribed by the Principal\nDirector General of Income-tax (Systems) or the Director-General of Income-tax\n(Systems) as per Section 3. <\/p>\n\n\n\n

Conclusion<\/h2>\n\n\n\n

The CBDT announcement regarding non-furnishing of PAN by non-resident fills the gap that was created by the non-resident w.r.t non-compliance with the tax authorities. The decision might give better control to the authority to track down the defaulters with ease. Making PAN compulsory for non-resident would definitely help the authority to maintain the integrity of the tax system. CorpBiz<\/strong><\/a> shall be happy to serve you in case of any need.<\/p>\n\n\n\n

Read our article<\/b>:Madras HC on Striking off Name of Company if no records presented from Income Tax Department<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"

On Monday, the Central Board of Direct Taxes (CBDT) announced the Income Tax Rules 2020 regarding FORM No. 49BA and non-furnishing of PAN by non-resident. The CBDT made this declaration in the view of the amendment of Income-tax Rules, 1962. Rule 37BC – The section 206AA As per rule 37BC – The section 206AA provisions […]<\/p>\n","protected":false},"author":22,"featured_media":15131,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153,152],"tags":[903],"acf":{"service_id":"78"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3761,"readingTime":2,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/15129"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=15129"}],"version-history":[{"count":5,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/15129\/revisions"}],"predecessor-version":[{"id":15138,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/15129\/revisions\/15138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/15131"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=15129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=15129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=15129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}