NRIs Not Needed to Disclose Foreign Directorships in Tax ReturnsTax Info

August 30, 2019 07:43
NRIs Not Needed to Disclose Foreign Directorships in Tax Returns

In welcoming news for Non-Resident Indian (NRI) business community and top executives, India’s tax authority announced that foreign citizens and NRIs who are required to file income tax returns in India will not have to disclose their directorships in foreign companies that do not make income from India in their tax return forms.

The decision by Central Board of Direct Taxes (CBDT) came ahead of the August 31 deadline of filing income tax returns.

“It is hereby clarified that a non-resident shall not be required to disclose details of his directorship in a foreign company, which does not have any income received in India, or accruing or arising in India,” CBDT said.

“In addition, a non-resident taxpayer who is a director in an Indian company and also in a foreign company which does not have any income received in India, accruing or arising in India would only need to provide details of directorship in the Indian company,” the Indian tax authority said.

A new column regarding details about directorships of NRIs was introduced in Income Tax Return (ITR) forms for FY 2018-19. The forms also had other non-residents such as their Director Identification Number (DIN), name of the company, whether the company’s shares are listed or unlisted and PAN (Permanent Account Number).

The statement from CBDT came after leading industry bodies in India made representations against seeking such information for overseas firms in the new tax return forms.

By Sowmya Sangam

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tax  non resident indians