Quick Summary
Form No. 24 is a statutory audit report prescribed under Rule 43 of the Income-tax Rules, 2026. It is required to be furnished by a non-resident assessee or foreign company that earns royalty or fees for technical services (FTS) from India and carries on business through a Permanent Establishment (P
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FAQ :
Form No. 24 is a statutory audit report required under Rule 43 of the Income-tax Rules, 2026, for non-resident assessees or foreign companies earning royalty or fees for technical services (FTS) from India through a Permanent Establishment (PE) or fixed place of profession in India.
Non-resident individuals, foreign companies, or any other non-resident entity that earns royalty or FTS from India and has this income effectively connected with a PE or fixed place of profession in India must file Form No. 24.
Form No. 24 provides an independent Chartered Accountant's certificate confirming the correctness of income computation for royalty/FTS, verifying the existence of a PE, maintenance of books of account, and deduction of only attributable expenses.
Furnishing Form No. 24 enables the computation of royalty or fees for technical services on a net income basis, allowing for the deduction of expenses strictly attributable to the Permanent Establishment or fixed place of profession in India.
Required documents include books of account of the PE, agreements relating to royalty or FTS, invoices, work orders, project reports, details of global and India-specific expense allocation, and potentially notes on intangible property or PE activities.
Form No. 24 is furnished annually, one month prior to the due date for furnishing the return of income under Section 263(1).
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